Financial Complications in Quality of Healthcare

In: Business and Management

Submitted By summeril1960
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Financial Implications on Quality of Care
There are many factors that can influence the quality provided by an organization. Conversely, it can also be be said that the quality of the services of an organization can have an influence over other factors as well. In this module, we look at how quality of care provided by an organization can carry major financial implications; that is, the importance of quality on the finances of an organization.
In Module 4 we talked about how necessary technology is to the quality of health care. The importance on quality, not just quality of care, is just as important to the financial success of a health care organization. Many third-party payers (such as insurance companies) base reimbursement rates on the level of quality provided by an organization. For instance, the advent of EMR, discussed in Module 4, has made the process of coding and billing much more efficient and therefore saves time for third-party payers in their review of reimbursement requests. The decrease in the prevalence of errors greatly decreases the waste of resources for the health care organization also. A good quality improvement initiative within an organization also results in a more efficient means of operating the company which in turn can greatly increase the overall bottom line. The Balanced Budget Act of 1997 has also placed quality as priority as it relates to reimbursement of health care services. "Outcomes," a major component of quality, has become a major focus in health care and the and the subsequent payment for services.
Finances and Quality
It has been predicted by the Centers for Medicare and Medicaid Services (CMS) that federal spending on health care will continue to rise over the next few years. It estimates that by 2015, spending on health care will increase to $4 Trillion. That is an astronomical difference from 1980 when…...

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