“In 2002 American paid an average of $5440 in medical expenditures, up $419 from the previous year alone.” (Frosch, 2005) The major increases in medical costs can be attributed to technological advancements and the high costs associated with break-through drugs. Capitalism is the driving force of the medication industry. Higher medical costs are the first major factor increasing health care costs. “What you’re seeing in the bankruptcy numbers is a function of the fact that there is a very thin social safety net in this country in terms of health care.” (Frosch, 2005) Another major factor is the huge spike in the past fifteen years of uninsured Americans. In 2005, there are 45 million uninsured Americans, a jump of 10 million since 1990.
The hospital was suffering from staggering financial losses, rapidly dwindling cash reserves, and a lack of clear direction for the future. In January 2014, the hospital’s board of directors decided to hire Health Care Conglomerate Associates (HCCA), a management company to manage the hospital. The Chairman of HCCA hired an entirely new executive team that included Alan Germany, our current Chief Financial Officer/Chief Operating Officer. Alan’s extortionary leadership skills and attributes has turn around the hospital that was losing about $1
Two other elements significantly contributed to indu... ... middle of paper ... ...onsumers when it comes to their own medical care,” said Prosser, a Mercer Health and Benefits Consultant. Withdrawal of Benefits: Even though employers who want to remain competitive in the marketplace for the best talent offer attractive healthcare insurance packages, the costs have already become too high for some employers. As a result, there is a decline in the number of employers offering health insurance plans. “Year-over-year increases in premium rates have forced some employers to opt out of healthcare coverage altogether. Of companies surveyed, 60 percent offer insurance to employees, down from 69 percent in 2000.” However, the managed care companies have simply removed less profitable customers from their base and continue to make profits.
In the year 2030, 72 million Americans will be 65 or older, a 50 percent change in age demographics since the year 2000. The change is primarily due to the aging baby boomers, who were born at the end of World War II. Americans are living longer than ever befo... ... middle of paper ... ... is an abstract model that proposes an exploratory plan for health services and evaluating quality of health care. In accordance with the model, information about quality of care can be obtained from three categories: structure, process, and outcomes. In addition, not long ago The Joint Commission include outcomes in its accreditation valuations (Sultz, & Young, 2011, p. 378).
After World War II however, hospitals and clinics started popping up all over our country enrolling more than half a million people. By the 1970’s healthcare became common place and the choice of HMO, PPO etc... were formed. Employers began to see managed care as a necessity for their employees and now healthcare comes as a job benefit (Tufts Managed Care Institute, 1998). Having a health care plan through work The alternative choice to a managed healthcare is a Universal healthcare which is a government-funded program. This health care system dates back just as far as managed health care however, this has never been much of a success in the American System (Karen S. Palmer,1999).
Managed care health insurance plans differ greatly from indemnity fee-for-service, or FFS, insurance plans. Since the early 1970's, rapidly growing enrollment in managed care health insurance plans has transformed the health insurance market in the United States. Virtually nonexistent in most markets three decades ago, managed care health plans covered 63 percent of the nation's employees by 1994. Managed care incorporates a range of features that allow the insurer greater influence in the process of care delivery. Managed care plans aggressively contract for lower prices from physicians and hospitals and attempt to constrain the use of health care services by monitoring providers and changing provider incentives.
A July statistics report from the Bureau of Labor Statistics says that the healthcare sector added jobs in the month of July, but the budget fund made them cut around 4,000 jobs in hospitals nationwide (Budget Cuts May Affect). At the end of 2012-2013, Wake Forest Baptist Medical Center (WFBMC) has announced that 950 positions will be eliminated with 475 positions currently held by employees. The spokesman of the Davie County Hospital, Chad Campbell, says of 475 positions, and 56.5 come from its Lexington Medical Center affiliate. As being the largest employer in Forsyth county, WFBMC is cutting 894 positions, which is 6.6 percent of its current local workforce (Wake Forest
Before Medicare, many Americans didn't have health insurance coverage, but since its inception the program has enrolled almost 40 million beneficiaries, who jointly fund the insurance program along with the national government (Carnegie). According to Dr. Don McCanne, a member of the Board of Directors of Physicians for a National Health Program, "Before the passage of Medicare in 1965, only 52% of persons age 65 and over had hospital insurance and less than 15% had adequate health insurance" (McCanne). The Medicare program has improved access to healthcare and improved the quality of life for millions of elderly members, and has provided insurance for millions of persons with disabilities. By reducing the burden of large medical bills, Medicare also has improved the economic status of the elderly. As Dorothy Price points out "Over its 33 year history, Medicare has channeled billions of dollars into the health care system, helping to foster enormous improvements in health care technology and medical education" (Carnegie).
In 1999, one out of four hospitals was public, and by 2010, this number decreased to one out of five2, signifying the growing instability of such institutions. The burden of providing uncompensated care, for which no payment is received from the patient or the insurer, carries an enormous financial liability for public hospitals. Costs of such services have skyrocketed from $3.1 billion to $45.9 billion in the past 30 years.3 As the Patient Protection and Affordable Care Act (PPACA) is implemented to overhaul the delivery of healthcare, uncertainties arise for public hospitals. It is likely that over 32 million people who are expected to gain coverage through PPACA by 2016 will seek care at their local public hospitals.4 Even if some of these patients decide to choose competing private providers, public hospitals must still be prepared for the other 23 million who are expected to remain uninsur... ... middle of paper ... ...ault/files/cbofiles/attachments/43472-07-24-2012-CoverageEstimates.pdf). 14.
Community Health Systems started in 1985 and in the short period of 35 years has grown to become one of the largest healthcare group in the States. The company went public in June 2000 at $13 a share. The companies biggest growth phase occurred in 2007 when they acquired Triad Group of Hospitals, which gave the strength of additional 50 hospitals to Community Health Systems name. The fortune 500 had ranked community health systems as #198 in 2012  and #184 in 2013 only second to HCA in the healthcare providers industry . The Community Health Systems has 90,000 staff with a management experience of over 23 years each.