Question

Explain the effects that inflation can have on a health care organization and how it should be accounted for in terms of financial and strategic planning.

Answer 1

Healthcare sector is one of the biggest growing industry in a disaster pace.When inflation occurs the healthcare sector are the one which can have a direct effect on it.This will simultaneously lead to a low quality care in the healthcare sector. The US government funds more than 50% of medical expenditures, this inflation will make the provider to opt for private sector rather than public sector when reimbursement problems occurs with government or if they are paid less.This has a direct effect on the patient by making then to pay higher premiums or medical bills to get the services.Hence on the grounds of finance the federal government has to oversee and plan in ahead.The rising cost has to be controlled in a systematic way on daily basis by reducing wastage and unnecessary spending on the things which could result in loss.