Health Financial Management - Essay Example

? Health Financial Management Executive Summary Health financial management is an integral part of analysis and making of decisions. The broad definition of health services involves the idea of financial analysis and thereby making important decisions about the overall management of a health sector. The environment in which the health facility exists constitutes an important and considerable decision point. A number of factors encompass the overall decision point at the health sector. These include the medication, nursing care units, management of the heath care and the entire hospital network (Finkler & McHugh, 2008). The goal that becomes the end in the health financial matters involves the creation of an operational knowledge network. Various opportunities arises that help in the application of a real life situations in matters relating to healthcare. It is also important to note a complete usage of spreadsheet. This knowledge system helps in the compilation of data in the most efficient way (McLean, 2003). Introduction Financial management of the health sector provides an easy approach that streamlines the labor health care intensively. The system of management helps to ensure an increase in the efficiency level, accuracy and reduced labor cost in the entire life of an enterprise. The implementation level provides the best solution if the optimal way is applied in the course of the operation of the business (Latimer, 2012). The National Case mix Scenario The National case under study is an Australian based program that ensures development of the Refined Diagnosis and the related groups. The classification of this form of diagnosis includes the statistical body and the diagnosis centre. The statistical body is involved in the dealing and classification of disease related problems and other bodies. These include the coding standards, classification and intervention body and the modification segment (France, 2001). The model applied at the funding level created an alarming effect with senior members of the health department. This case was felt in the New South Wales with great magnitude. The magnitude emanated from the opposition in the funding process. The hospital association in Australia accepted the idea of funding. Believe in the ideology of better performance evolved from the existence of favorable arrangements at the time. Later, a committee for case mix evolved. It performed the work of determination of clinical changes as per the US regulations. This gave rise to the creation of Australian National and Australian Refined. The entire national case system gets fund from the Australian health department. The seventh edition of Australian modification happens to take place at the end of June 2013. Another event will also unfold on first of July 2013. This event will feature under the seventh edition partnership program. The seventh edition will ensure that planning and implementation takes place in the entire phase of the heath management (Willis, Reynolds & Helen, 2008). National Health and Hospitals Reform Commission (NHHRC) Report The birth of COAG is a signaling factor to the NHHRC. The COAG had a meeting that raised important agendas to focus on the NHHRC (Appleby & Aroney, 2012). Some of the recommendations included the requirement on the address of peculiar issues of regulation as a rule in the commonwealth. The Council of Australian Government (COAG) body had an agreement to increase the funding requirements of the state aimed to increase health issues. The funding initiative had a focus on capacity improvement as a main goal. It is imperatively important to appreciate work performed by the COAG (Crase, 2008). The body comprises of on dignitaries including the prime minister and other state dignitaries. The body schedules to have a meeting on April 13 2012 at Canberra. The main agendas at any meeting must revolve at some of the most important issues like the major reforms, delivery of Medicaid and the funding level aimed at the sustainability of the entire health system. On 1st of July 2012, there will be a dramatic change in the Australian migration portal. New model will come in to place. The introduction of such a system means a major overhaul in the migration system in to the country. An online registration system will come in to place. Every one must express a point of interest first before applying for an Australian visa. This will form the basis on which one can then proceed to the actual application as an immigrant. At the same time, there would be an acute inpatient service that will take place. Acute inpatient is a program where restructuring of the public sector takes place. The main reasons behind the program is to cut on expenditure and trying to ensure an improved efficiency level. Funding at the Health Sector The mechanism applied in the payment provides an important case to analyze core elements of a health sector. This includes the reasoning behind the technical design, inpatient systems and the Diagnosis Groups (DRGs). The aims associated with these systems are the reimbursement policy for the work already undertaken. Another aim involves the provision of an efficient service for an enhanced delivery (Elliot, Aitken & Chaboyer, 2011). The activity requires a good fulfilled policy that ensures a balanced utilization of resources in a pure method. The DRGs focuses mostly on the reflection of the cost and treatment of patient in a fair manner. In the case of mobility of patients, there exists a growth in the health sector interconnection. The involvement of the sickness funds provides an engagement program for the border reimbursement services. Information will also ensure a definite role in the funding strategy in the state. DRG is involved in the scrutiny of various challenges in the entire course of the project. Challenges that exist in the course of the project include the complex nature of the case system for hospitals. Comparative study and analysis of the health system between various parameters helps to solve many mysteries in the health sector (Fuller, 2008). The effects, differences and similar attributes of the health methods and objectives provide a solution based approach. A number of comparable attributes analyses the entire scenario. These include the patient system and classification, data collection and the cost calculation versus reimbursement rate. At the classification system, the issues discussed include diagnosis, procedures and the severity. In the data collection, clinical data and cost plus sample size will provide a suitable rationale. It is important to note that the following determines the hospital costs: patient variables, medical decisions and structural variables. Patient variations are the element of gender, age, diagnosis and severity. Medical variables involve the procedures involved, technology level and the human resources. The structural criterion involves the regional and national factors of wage level, location and size (Office of Technology Assessment, 1983). Starting from 1 April 2010, the Activity Based Funding (ABF) method came in to being to enable funding of long-term care (LTC) in the hospital. This was a drift from the numerous different funding recommendations formerly employed. ABF shifts towards a method of funding better planned to accomplish the aims of a provincially united health scheme, promoting the most unbiased and realistic use of limited funds and resources. The various new activity based funding methods in the hospitals illustrates as follows: (A Primer on Activity-Based Funding, 2010, p. 4). Review the Associated Reports and COAG Decisions of 2007 to 2010: The Activity Based Funding is better in the hospitals. ABF is about finding methods to do things better, and this contains improving safety and quality; better patient experience and fewer delays and mistakes. Under ABF, the measures that hospitals undertake will have to meet clear patient care standards. The activity Based funding system will contain mechanisms that specifically support developments in safety and quality. Other mechanisms will discourage hospitals from raising their activities at the cost of patient care A critical part of ABF is that we need to be able to define, count, classify, cost, and disburse for each activity in a reliable manner. “The COAG agreement recognizes five different types of activities to be funded under ABF: Acute inpatient admissions such as surgery, medical admissions, maternity and pediatrics, Emergency department services, Sub-acute care (both inpatient and outpatient) such as rehabilitation and palliative care. Palliative care includes Outpatient services centre for health service development, Hospital-auspice community health services such as home nursing and post acute care” (Eagar, 2010). Report for the last Two Years From the table shown above, the number of days COAG took to treat those waiting for optional surgery increase from 34 to 35 for 50 percentages of people in the year 2009-10. There was additionally nosh-up in the time it get before patients waiting for surgery, up from 233 to 246 days for 90 percentages of people in the year 2009-10. The average wait for a coronary artery bypass went up from 15 days and the stay time for knee operation leapt from about 156 to 180 days. The states received an additional $150m federal funding boost in July 2008 to fund equipment and buildings to further improve their elective-surgery performance, but it failed to cut elective surgery waiting times (Furlong, 2004). The COAG report also found that one million people cannot afford to see a GP, 500,000 and therefore, cannot afford to see a specialist. More than one million could not afford to buy medicines prescribed by their doctor. Conclusion A lot of emphasis shows the magnitude of this report. Health financial management is an important element in the work of DRGs. The element of ABF for acute inpatients is another strong point. The focus is the general personal health that should exist at all times. The usage of DRGs in Australia dates back from the 1980 up to date. This was the time of national case mix funding. References Appleby, G., Aroney, N. & John, T. (2012). The Future of Australian Federalism: Comparative and Interdisciplinary Perspectives. United Kingdom: Cambridge University Press. Bateman, N. (2012). The Business of Nurse Management: A Toolkit for Success. New York: Springer Publishing Company. Crase, L. (2008). Water Policy in Australia: The Impact of Change and Uncertainty. Washington D.C: Earthscan. Elliot, D., Aitken, L. & Chaboyer, W. (2011). Acccn’s Critical Care Nursing. Melbourne: Elsevier Australia. Furlong, D. (2004). Medicare Myths. Ottawa: DreamCatcher. Fuller, M. (2008). Software Studies: A Lexicon. Washington D.C: MIT Press. France, F.H.R. (2001). Case Mix: Global Views, Local Actions: Evolution in Twenty Countries. Netherlands: Francis H. Roger France. Finkler, S.A. & McHugh, M.L. 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