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Why is it necessary to rate the financial health of a hospital?

Why is it necessary to rate the financial health of a hospital?

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Answer #1

A hospital is an entity where the health and lifesaving of humans are carried out. It is a critical institution and the health of this institution is necessary to carry out life saving functions. The hospital needs to be financially good in order to function properly. A low on funds hospital can pose grave consequences related to

  • Unavailibility of life saving medications in case bills are not paid.
  • There are oxygen supply and other supplies which need be in a hospital
  • Availibility of good professionals who can perform better medical practices
  • Updation or upgradation of life saving machines

The hospitals need be rated financially as any degradation in rating can pose serious threat to functioning of the hospitals and proving risky if necessary facilities are not availaible.

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