(Two files will be provided that need to be reviewed before writing the paper, the paper needs to be about the presentations in the files to be uploaded. Also please reference two other sources).
Hospitals account for the largest amount of healthcare expenditures in our system. To better understand these costs, please review the file in our Week 6 Content section called “Hospital finance” and the link to a recent study on hospital administrative costs.
In reviewing these materials, remember that the concept of “margin” refers to the difference between costs paid out by the hospital and revenue received as payment for those costs, and that of “Payment-to-cost” ratio is the margin expressed as a percent. A positive percent means that payments were greater than costs and a negative percent means that the costs exceeded payment.
After reviewing both documents, then answer the following question:
What’s the big deal about hospital administrative costs and what, if anything, should be done about them?
(As you answer this question, it’s important to remember that the hospital’s administrative costs cover the salaries of healthcare administrators like you).
https://www.commonwealthfund.org/publications/in-the-literature/2014/sep/hospital-administrative-costs
https://kff.org/health-reform/
