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The Problems Of The Healthcare Industry

Decent Essays

There are many factors in the healthcare industry which can incur more costs to the employers. The cost of healthcare is on the rise in the country and the reasons commonly known are the age of the population and the development of new treatment and technology but there is also very less understanding on how these costs are measured and how much more we pay for the outcomes we achieve. Poor costing systems have disastrous consequences and since the cost is misunderstood they are unable to link costs to improvements and outcomes that prevents them from making cost reductions. (Kaplan&Porter,2011). Most times the healthcare facility has to pay more for the errors from their side too. Following are three different situations in medical centers of how taking decisions caused cost crisis in their facilities and for the Organizations. We realize that when the employees are not happy and when the Leaders make errors in judgement and behavior the economic ramifications are huge. The Pine Village Community Medical Center: The Community medical center which was once 280 bedded had to make one third of its facility to assisted living and lay off 25 employees due to financial issues and changes in the uncertainty of Government regulations and Medicaid and Medicare. The problem is the fact that employees of a once upon efficient Medical center are very unhappy about the way they are being treated and feel they have to discuss their concerns with the those in the top level of the

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