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Healthcare Financial Reform - Research Paper Example

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Running Head: Healthcare Financial Reform Name: Institution: Professor: Date: Healthcare Financial Reform Introduction Healthcare systems include organization of institutions, people, and resources delivering health care services in aid of meeting health needs of a certain population (Baker, 2011)…
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Healthcare Financial Reform
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Healthcare Financial Reform

Health care planning and reforms is not revolution but evolutional. Healthcare financial system should be reformed to ensure effective operation of the system. Health coverage should be available to each person even people with low income. The government alone can not provide enough funds for healthcare systems. For effective operation, healthcare systems need financial assistance from other organizations. The existing financial operations are not adequate, and that is why reform is needed. Taxation According to Karl (2010), one of the areas which need reforms is taxation. The current trend in taxation of healthcare services does not promote effectiveness of the operations. Many countries collect an enormous sum of money in taxation of healthcare workers, healthcare insurance and health facilities. The funds collected as tax can source other services in the healthcare systems. Many companies pay wages to their employees, but they do not pay insurance taxes. The employees take care of the insurance taxes which reduce income. The government does not spend the taxed amount in facilitating health services. Many states charge a huge sum of money as a form of tax to individuals establishing health care services system. Those systems include hospitals, clinics, dispensary, laboratory services centre and x ray units. In the establishment of those systems, the government requires a lot of money as tax. An individual also pays for other bills. This has made many people avoid opening private healthcare systems. In many states, the government healthcare services systems are many than private, and this leads to congestion in the hospitals leading to poor services. The government should revise the bills regarding taxation of the healthcare services. The government should reduce taxation to the people willing to establish private health care systems. If the government can abolish the tax, many health centers could arise. Creation of many health centers will lead to effective and efficient services because of competition (Karl, 2011). In many countries, governments do not have enough facilities to handle every health problems. The governments imports facilities from different countries. In case of importation, it pays a lot of money for values added tax. Some government officials decide not to buy the facilities due to the large amount of tax. This leads to poor services due to lack of infrastructures. In private hospitals, they work for profit. In case of payment of high taxes while buying facilities, it means that the hospitals will make a little profit. As a result, people opt not to engage in health service business and leave the work to the government. The manufactures of healthcare facilities should reduce tax and sell the facilities at an appropriate price. The government should also make sure that it has enough funds to buy infrastructures even at a high cost. People running private hospital also should make sure that, they have enough facilities to handle each health problem. In taxation of healthcare workers, the government charges a lot of money, which makes many of the workers to quite the job. Many of the workers have decided to quit the profession due to excessive payment of tax. They opt to open private business in order to avoid payment of taxes. Insurance covers also charges taxes, which make many individuals not able to take a cover. The government should reduce taxes to employees in the healthcare system (Baker, 2011). This will motivate the workers ... Read More
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