Business Question

Recomendations:

title nees to be more specific –

paragraph 1 page 2 is actually page 1(page count based on TEXT..not title, abstract, or resources

use which instead of what

be more specific as to what you mean by resource allocation

specifically state how the strategies are actionable

explain orgainization yields

explain which ratios could be used and specifically how they might be interpreted and integrated

how are you using payback? – as a financial metric or a capital bugeting tool…it is not a capital budgeting tool..it is merely a stepping stone towards valuation..

a paper in this course is not expected to be comprehensive…”Comprehensive: would be a book!

explain the next steps specifically in your road ,ap

if you are going to conduct “comparative approach” then you need to provide data exhibiting your findings

explain the costs and benefits of telehealth

you do have some writing errors

be careful of the use of “such as”..

include your resources within your paper

explain what ACO are and how they impact your study

expand your discussion using specifics

do not use the word “like” in research

be specific as to what a “positive trend” trend is…give ##

liquidity and debt are both in the same category as far as financial analysis is concerned..they are financial health ratios

Capital budgeting effectiveness depends on the application of the tools rather than the mathematical formulas which do not change – NPV is still NPV..

capital budgeting does not look at financing techniques specifically – the WACC includes financing – Capital budgeting accesses asset management – not financing – so..the costs of loans is figured into the % WACC not part of the outcome rather part of the inputs

throughout your paper – you need to be more specific – you are writing in terms which are too broad

page 13 you make some statements about regulations

what are the costs of becoming green – are they sustainable – be specific – as to casts and benefits

throughout your paper you need more specificity

page 14..”Those who do not adapt digitally may face challenges…be more specific – this statement is very vague

In your recommendation you need to explain HOW..

how does healthcare diversify revenue steams – be specific

how does healthcare industry enhance patients financial background?

how is trust built

how should staff be trained

make your conclusions YOUR OWN

looking into these areas will improve your papers score

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Financial Management in Healthcare
Caroline Quiñones Matos
MBA Program, Albizu University
MFIN-504: Managerial Finance
Dr. Dana Leland
February 24, 2024.
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Financial Management in Healthcare
The healthcare sector is one of the ever-changing sectors in the globe. Its continuous
proliferation and evolution have introduced significant challenges for healthcare stakeholders,
thus necessitating the need for effective financial management strategies. Dynamic regulatory
policies, technology innovations, and current healthcare needs across the globe drive the
contemporary healthcare landscape. As a result, healthcare stakeholders use financial strategies
as promoters to attain operational efficiency and sustainability while patients demand more
outstanding quality of care and healthcare costs continue to surge. However, there are a myriad
of financial management strategies available for implementation. Therefore, the overarching
research question is: What financial management strategies apply to promote strategic growth
and sustainability in healthcare? The paper explores several strategies that support resource
allocation based on financial planning, thus allowing healthcare stakeholders to enhance the
quality of care amid unprecedented challenges.
The purpose of this paper is to offer a blueprint with actionable financial management
strategies to allow healthcare stakeholders to attain sustainability amidst rapid changes in the
healthcare field. As technologies evolve and regulatory standards change, healthcare
stakeholders need help to remain financially viable, constraining their capacity to attain
organizational missions (Hermes et al., 2020). This paper offers a comprehensive analysis of
financial management strategies to discern the best practices that guarantee excellent healthcare
quality in the face of disruptive technological innovations. The significance of this research lies
in its ability to delve into healthcare financial management to unravel the strategies that impact
healthcare decision-making and effectiveness. In a period characterized by significant challenges
and transformations, the research findings allow healthcare financial leaders to understand the
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economic frameworks and their linkage with cost reduction, revenue growth, and care
administration.
Multiple scholars in the past have examined various financial aspects of healthcare.
Nonetheless, there remains a gap in the efficacy of financial management strategies in
healthcare. In this bid, this study uses the existing body of evidence to compare and analyze
financial management strategies in healthcare. This approach offers a new discourse by
examining financial reports and patterns across healthcare organizations. The aim is to demystify
successful financial frameworks and potential pitfalls that accrue when organizations conduct
financial planning amid rapid evolutions in the healthcare landscape. Using existing literature, I
argue that the future of healthcare organizations depends on the relationship between
organizational yields and financial decisions. I offer a comparative approach, which includes
examining evidence on case study examples and financial ratios and metrics across
organizations. Primarily, this paper adds to existing research knowledge by examining the impact
of financial management strategies in an ever-changing healthcare landscape.
The comparative approach in the paper is constructed using different sections to ensure a
broad understanding of the subject. First and foremost, the paper explores the current healthcare
landscape. The healthcare profile is examined by highlighting key trends, such as rising
healthcare costs requiring careful financial planning (Hermes et al., 2020). Secondly, the study
will reveal financial strategies used by healthcare stakeholders to welcome sustainability and
attain revenue growth. These strategies include the payback method, ratio analysis, the time
value of money, and working capital management (Zelman et al., 2009). Additionally, the paper
will compare these strategies to identify the financial strategies that drive organizational success
by examining financial reports and case studies. The subsequent section will study contemporary
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healthcare by revealing the implications of ever-changing global healthcare needs, regulatory
pressures, and technological advancements. Finally, the paper will offer recommendations based
on existing evidence to ensure healthcare stakeholders and leaders embed comprehensive
financial planning with direct managerial relevance. This roadmap will offer practical insights to
allow readers to understand the complexities linked with financial management strategies in
healthcare and the patterns that drive sustainability in the dynamic healthcare landscape.
Current Healthcare Landscape
The current healthcare environment is experiencing significant changes due to various
factors, such as technological advancements, evolving consumer demands, policy adjustments,
demographic shifts, public health emergencies, and other significant trends that will influence the
industry in the long term (Ardebili et al., 2021). Amid challenges, expenses are rising,
highlighting the importance for all parties involved to reconsider financial strategies, leverage
technology for efficiency, reduce waste, and focus on making healthcare affordable for patients.
The ongoing changes in the industry are reshaping operations, finances, and competition.
Key Trends in the Healthcare Industry
Providers are experiencing significant changes, such as expanding telehealth, adopting
new technologies, consolidating care delivery, and the need to address staffing shortages and
increasing chronic diseases. The COVID-19 pandemic has significantly accelerated the adoption
of telehealth, allowing for remote medical consultations, patient monitoring using wearable
devices, and various other forms of virtual care (Golinelli et al., 2020). Initial data suggests that
telehealth has led to increased access, better results, and high patient approval, indicating that
virtual medical services will probably remain a crucial part of many healthcare systems.
However, quick virtualization demands substantial information technology investments to
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guarantee data privacy/security protocols, technical interoperability, and clinician training in
virtual rapport building. There is optimism about automating repetitive administrative tasks,
strengthening clinical decision support systems, predicting adverse events, and improving
diagnostic accuracy (Kiyasseh et al., 2022). However, there are challenges to successfully
implementing the system, such as data governance policies, liability concerns, and initial costs
that may hinder widespread adoption.
As the competitive landscape changes, companies merge, acquire, and form partnerships
to improve patient access and reduce costs. For example, significant deals such as Amazon’s
purchase of OneMedical and the integration of CVS Health and Aetna demonstrate vertical
integration, bringing together various players in the healthcare industry under one corporate
entity (Grant, 2023). Some critics raise concerns about whether this consolidation restricts
patient choice or hampers innovation that benefits from market competition. Regulators face the
challenge of promoting network expansion for better affordability while safeguarding equitable
access from monopolistic exploitation.
Disruptive care delivery competitors are emerging, such as convenient walk-in clinics
competing on price transparency and tech-savvy customer experience and firms specializing in
direct primary care subscriptions that avoid insurance hassles through flat monthly fees (Christie,
2020). These innovative care delivery models meet the desires of today’s healthcare consumers
for convenience, transparent pricing, and personalized services. Once more, there is a risk of
limiting inclusivity if the focus is on tech-savvy middle-class individuals rather than considering
digitally disconnected vulnerable groups (Emanuel et al., 2021). This complicated
interrelationship between the existing institutions, emerging rivals, and critical policy choices
underlines the need for financial planning and market monitoring for all the industry’s
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stakeholders. Outdated opinions can plunge the once dominant organizations into liquidation as
the conditions in which they operate transform dynamically.
Rising Healthcare Costs and the Need for Careful Financial Planning
With all the uncertainty and technological capability, costs are rising rapidly, with over
$4 trillion in health expenditures recorded in 2021 alone, translating to nearly $10,784 per US
resident (Statista, 2023). This figure represents double average spending levels across other highincome nations. Factors such as the high cost of biopharmaceuticals, inefficient administrative
systems, overwhelmed staff, lack of price transparency for services or formulary drugs, waste,
and fraud collectively contribute to more expensive healthcare spending per person. According
to Raghupathi (2020), this increased cost is significantly higher than in European and Asian
countries but often does not lead to better health outcomes. In addition, the overall burden of the
disease is increasing because of the growing rates of chronic health problems, including obesity,
diabetes, and mental health disorders. Also, socioeconomic factors such as inadequate housing,
poor nutrition, environmental risks, and financial issues contribute immensely to setbacks
experienced in the health system (Mathiarasan & Hüls, 2021). The interconnected systemic
challenges are worsening problems in the healthcare model that focuses on acute care,
emphasizing the need for significant reforms in delivery systems and financing to prioritize
patient needs and reduce inefficiencies.
Financial Strategies for Sustainability
Responding to the current situation, the prevailing fee-for-service model remains
prominent in reimbursement structures. However, a growing shift toward value-based care brings
hope for aligning incentives toward prevention rather than profits (Wisk, 2022). In addition,
hospitals are adopting global capitation models that focus on patient-centered medical homes or
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accountable care organizations (ACOs). Nonetheless, the advancement of digital health science
and the increasing demand for healthcare justice demand innovative integrated financing
experiments to achieve fair, personalized, and financially reasonable care.
The Payback Method
When it comes to healthcare, the costs for significant projects such as buildings, health IT
systems, and medical equipment are high. According to Wisk (2022), financially focused leaders
use the payback period to evaluate anticipated revenues and implementation risks and make
decisions aligned with organizational strategy. The method lets them know the duration needed
for a project’s total cash inflows to match its initial investment and continuous cash outflows.
Choosing a project with a shorter payback period is more financially advantageous because it
allows costs to be recovered quickly through revenues (Singh et al., 2022). Leaders can set up
company-specific policies regarding payback periods, such as mandating that technology
investments yield a payback in less than 3 years based on a 5-year product lifespan.
The approach is supported by literature indicating that the provider’s size affects the
consolidation of costs, with more prominent healthcare organizations balancing their costs than
smaller ones, which presents financial success from cost efficiency due to economies of scale.
Findings indicate that the radiology departments usually apply the planning and accounting
methods of payback analysis to evaluate high-cost imaging equipment purchases such as CT
scanners (Denjagic, 2021). However, changes to reimbursement coding rules delay
reimbursement of imaging equipment beyond the machine’s life, leading to uncertainty in
replacement decisions. The scenario highlights the payback analysis as a valuable tool for
resource allocation in the quickly changing healthcare surroundings, albeit with certain
disadvantages.
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Ratio Analysis
Besides the payback method, a company’s financial statements can be examined using
ratio analysis, which compares financial metrics. Healthcare leaders must grasp the different
indicators to predict a company’s profitability, liquidity, operational efficiency, and financial
stability. For example, liquidity ratios such as the current ratio compare assets to liabilities,
indicating the likelihood of a corporation meeting its immediate financial obligations. According
to Hofmann et al. (2021), financial independence increases with more incredible prices. On the
other hand, leverage ratios assess the debt load with more debt, which means more dependency
on additional funds, which can be troublesome in emergencies. Different approaches, like the
performance ratios, measure a company’s profitability by comparing sales revenue to shipping
costs. Positive trends show that a company’s financial plan is working as desired. Indicators such
as the income of each full-time worker evaluate the strategy’s effectiveness.
Many ratio methods require healthcare executives to consider more than one ratio when
making choices to have a more accurate picture (Hultkrantz, 2021). For example, an organization
that wants to improve its trauma center can set its goals after analyzing the liquidity and debt of
hospitals of various sizes and services. It is possible to opt for riskier interest rates if the results
show that competitors fund similar projects with cash rather than loans. Such evaluations are
crucial for evaluating safe debt levels, competitive wages, and the best way to store medical
supplies (Grant, 2023). The insight means that leaders should observe ratios over time to know
their strategic choices. For instance, care practices and payer rates may need to be adjusted if the
outcomes indicate problems making money rather than occasional cost spikes. This occurs when
the annual margin has been plummeting for multiple years. The trends show where to invest and
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where to change. The findings demonstrate the importance of employing the ratio analysis
criteria to monitor financial exposures and opportunities that can maintain operations.
Time Value of Money
In the third approach of financial stability, the time value of money, the general
assumption is that money has more excellent value in the present due to rising prices caused by
inflation. This theory is based on the principle that cash in hand, or one that is readily available,
has the potential to generate greater returns (Hofmann et al., 2021). The approach requires
leaders to consider several factors to ensure accurate financial estimates for healthcare decisions.
These elements include comparing future expenditures with current savings. In particular,
inflation should be given more consideration as it diminishes the buying power of the upcoming
currency, as demonstrated by recent turbulent and unstable economic times. The uncertainty
demands the respect of depreciation of future funds to evaluate investment returns properly.
Research by Hultkrantz (2021) on planning for specific risks in financial projects
indicates that healthcare finance professionals use discounting and compounding formulas to
evaluate the impact that the time value of money has on a given scenario. This involves
calculating the present value to determine how much future cash flows are worth. This is done by
applying a predetermined interest rate for discounting. This data allows them to choose the
current value. With this information, they make helpful comparisons that will enable them to
make an informed decision. To determine the value of a present quantity, models consider the
anticipated future interest rate when making predictions about future value (Bombs). Leaders in
the healthcare industry use the concept to investigate the most effective methods of funding longterm projects, such as the construction of programs or the acquisition of new equipment.
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For example, consider a scenario where a healthcare organization needs to decide
whether to use its cash reserves or take out a 4% interest bank loan over 30 years to fund a new
$10 million hospital wing. Based on the results of a present value study, it is clear that the loan
costs $3.7 million presently. This figure considers the interest payments that will be made in the
future. The substantial contrast highlights the financial benefits of using debt financing instead of
using current cash reserves for significant capital investments anticipated to generate long-term
growth. These findings depict that the time value of money approach assists healthcare stewards
in enhancing returns on assets that benefit communities for generations.
Working Capital Management
Managing working capital is essential for monitoring healthcare organizations’ current
assets and liabilities to guarantee enough cash flow for daily expenses and financial obligations
(Golinelli et al., 2020). Managing components like accounts receivable, accounts payable, and
inventory is crucial for enhancing the organization’s economic sustainability. This thoroughness
is essential as most hospitals and health systems function with tight profit margins, highlighting
the importance of managing working capital effectively to prevent liquidity risks and missed
opportunities linked to less-than-ideal capital distribution. When revenue collection from claims
processing is delayed, or insurers take a long time to pay, it can reduce cash reserves. This
problem can be solved by implementing lean supply chain practices, which enhance inventory
control. The approach allows healthcare organizations to improve their ability to adapt to
industry changes using data-driven strategies to optimize operational capital.
Another effective strategy involves consolidating claims management within specialized
teams rather than spreading the tasks. This consolidation speeds up claims adjudication (Singh et
al., 2022). Reaching out strategically to payors and creating payment plans are crucial in
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enhancing receivables. Regarding payables, forming alliances for strategic group purchasing can
lower supply costs. Inventory management is optimized by adjusting stock levels according to
demand (Wisk, 2022). Leaders enhance working capital governance across the revenue cycle by
incorporating technology like predictive analytics and automation. Research further indicates
that they proactively engage with payers to prevent unexpected decreases in revenue through the
implementation of agile planning techniques. This approach allows financial managers to
strategically assign the available funds to growth initiatives aligned with the organization’s
objectives through effective management.
Comparative Analysis
Comparing the four financial tools is essential to establish the advantages and
disadvantages of each option. The payback method is a practical approach to assessing
purchases. It determines when an organization or project will begin generating profits. However,
it may not be as precise as other discounted cash flow calculations beyond the payback period.
Ratios provide a comprehensive view of a company’s financial well-being by considering
historical performance (Mathiarasan & Hüls, 2021). To transform upcoming duties into current
ones, it is crucial to grasp concepts such as the time value of money. Research indicates that the
final step in this approach hinges on making assumptions about predictions. Implementing this
method could be challenging due to the unpredictable nature of healthcare cash flow. On the
other hand, effectively managing working capital can lead to improved cash flow and facilitate
business expansion.
Most industries, including healthcare, utilize the payback method to calculate their capital
budgets (Raghupathi, 2020). Businesses frequently use this approach to produce goods and
medical equipment to streamline calculating potential profits against expenses. Considering only
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payback periods in evaluating the time value of money could lead to a focus on immediate
returns, potentially overlooking the benefits of long-term investments. Examining aspects such
as profitability, liquidity, efficiency, and debt through ratio analysis provides valuable insights
into the evolving performance of the financial sector. When managers consider adjusting their
strategic objectives, mainly if they aim to increase sales or reduce expenses, referring to industry
benchmarks can provide valuable guidance. However, probabilistic financial modeling models
outperform ratio analysis in anticipating and preparing for potential future challenges.
On the other hand, estimating the future cash flow factor in the money’s time value
effectively predicts economic trends and determines the costs associated with investing in growth
initiatives (Hultkrantz, 2021). However, the changing value-based pay structures can
significantly complicate the modeling process. Improving working capital management can lead
to increased revenue and more efficient spending. However, complex healthcare billing systems
impede the approach, creating challenges in managing payments and outstanding balances and
often requiring significant reorganization. The differing benefits and drawbacks indicate that
managing money in the healthcare industry requires integrating numeric and qualitative decisionmaking processes.
Implications to the Healthcare Landscape
The study findings indicate that different approaches to managing money have
advantages and disadvantages. The straightforward approach to returns does not take into
account the payback period. It fails to consider the impact of inflation on the value of money or
future cash flows. Examining ratios is a helpful method to grasp an overall view of a company’s
financial well-being. However, it solely relies on historical information, which may not provide
the most accurate prediction of future outcomes (Singh et al., 2022). Understanding the value of
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items over time is crucial in making informed financial decisions that impact various aspects of
life. However, leaders must make assumptions about future cash flows and discount rates
throughout the process, leading to incorrect projections. Effectively managing working capital is
crucial for maintaining financial stability and optimizing growth opportunities. The method is
impeded by the irregularity of cash flows, which is evident as the healthcare industry often
experiences delays in payment processing.
The difficulty in choosing the most effective financial approach is further hindered by the
health systems that are constantly evolving to enhance affordability, accessibility, and quality of
care for patients. This is due to fluctuations in population, long-term illnesses, and widespread
disease outbreaks that consistently contribute to the ever-evolving landscape of global
healthcare. The shift has forced countries to strive to enhance primary care and transition to
value-based payment models to achieve universal health coverage (Emanuel et al., 2021). This
focus emphasizes maintaining good health by supporting population health programs.
Nevertheless, significant challenges persist, such as the shortage of healthcare professionals and
complex financial issues. This means there is a gap that demands detailed financial management
strategies that balance reducing expenses and increasing revenue to ensure the continuity of
providing exceptional care during challenging times.
Regulatory factors play a crucial role when organizations make financial decisions. Those
responsible for healthcare must stay informed about worldwide health patterns and adapt to
evolving regulations to capitalize on opportunities and prevent issues (Grant, 2023). For
example, guidelines regarding reports on environmental sustainability might require significant
adjustments from green finance institutions. However, these regulations can pose considerable
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challenges for smaller community hospitals that lack sufficient financial reserves and struggle to
secure funding from external sources.
The current healthcare landscape further demands that healthcare organizations invest in
IT security to comply with federal privacy regulations and protect against HIPPA violations and
ransomware attacks, especially as profit margins become tighter across the industry. Measuring
regulatory risks and benefits with thorough cost-benefit impact modeling offers practical data,
enabling organizations to adjust compliance programs appropriately or seek exemptions if
necessary (Kiyasseh et al., 2022). Specific regulations, such as pandemic stimulus funding, have
opened up opportunities for growth financing, highlighting the importance of environmental
awareness and engagement with policymakers. Keeping track of governmental reforms, quality
incentive programs, safety guidelines, and transparency rules is crucial for modern strategic
financial planning.
Advancements in technology bring about both financial opportunities and risks.
Emerging technologies such as telehealth, blockchain, artificial intelligence, and advanced data
analytics are poised to impact healthcare economics significantly, according to (Golinelli et al.,
2020). Investing in virtual care platforms, genomic testing capabilities, and interoperable
electronic records can lead to long-term efficiency gains and improved margins. However, the
lack of technology integration increases operating costs and impacts coordinated care. More than
half of health systems focus on updating their IT systems and improving their data use. Those
who do not adapt digitally may face financial challenges in the long run (Ardebili et al., 2021).
However, the obstacles to justifying initial capital investments due to uncertain returns and
cybersecurity risks make leaders hesitant. Nevertheless, business opportunities facilitated by
technology, such as subscriptions for wearable devices directly to consumers, can create
15
additional sources of income when weighed against ethical concerns regarding fair access.
Ultimately, selecting which innovations to fund requires assessing both financial and social value
– cost-benefit projections should encompass dimensions like community health equity,
environmental sustainability, patient empowerment, and profitability.
Recommendations for Comprehensive Financial Planning
Synthesis of Research Findings on Financial Management Strategies
In light of the changing healthcare system, financial management strategies must be
institutionally implemented; that is crucial. First, it is prudent to diversify the revenue streams.
Actions related to enhancing outpatient, virtual, and acute home care settings should be
addressed because the mentioned areas have shown potential for future growth (Ardebili et al.,
2021). Healthcare organizations can increase their revenue through remote care technologies and
telehealth services, consequently improving patient access to care.
Secondly, enhancing patients’ financial backgrounds is critical to having a good patient
experience. Due to the rising number of stakeholders who want their financial solutions tailored
to fit flexible payment options, healthcare organizations must equip their systems with better
payment processes (Hultkrantz, 2021). Harnessing patient financing programs to address the
growing concern of affordability in healthcare is vital. Another idea is to build trust. Protecting
the data and transactions is a significant issue for healthcare organizations to let them build trust
with patients and stakeholders. Software solutions can be optimized, and trusted partners can be
identified to develop relationships and enhance confidence.
It is also essential to secure cyber security to counter continuous threats. Investing in
cybersecurity measures and adapting to the ‘zero trust’ model is critical to the fight against data
breaches and ransomware attacks. The adaption of the digital process is necessary. CFOs and
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other senior leaders must fully digest the digital-first operations and leverage technology to
streamline the financial processes (Hofmann et al., 2021). Effective maximization of financial
operations can be achieved through system integration and the use of APIs. In the end,
uncovering various payment forms could catalyze the evolution of finance. Mobile payments,
real-time payments, and other digital payment technologies offer an opportunity to revamp
payment processes and increase the financial sector’s efficiency.
Insights for Healthcare Stakeholders and Leaders
The first step of the healthcare stakeholders and leaders should be performing a general
money analysis. It embraces determining stress points, evaluating revenue prospects, and taking
stock of the financial health of the whole entity (Wisk, 2022). Financial strategies should be
established to care for the patient’s interests. Highlighting the patient experience with finances
and offering customized payment plans will increase patient satisfaction and achieve the desired
financial results for healthcare organizations.
Protective cybersecurity measures should receive more investments. It is necessary that
the “zero trust model” is allocated resources to be implemented, staff is trained on cybersecurity
practices to reduce the risk of security breaches, and security protocols are updated regularly
(Kiyasseh et al., 2022). Healthcare agencies should adopt technology and innovation to increase
efficiency and patient care quality. Telemedicine, EHRs, and data analytics tools should be
invested in, but this should be done carefully considering both these technologies’ financial and
social impact.
Incorporating Thorough Financial Planning with Practical Managerial Significance
A crucial prerequisite to having a perfect financial planning strategy that achieves the
management’s goals is for the finance professionals to be active in the strategic making. Finance
17
needs to collaborate very closely with the operational and clinical teams to develop cost-saving
opportunities and a revenue maximization plan. Reviewing and updating the regular finance
plans to align with the changing regulatory measures and latest technologies is essential.
Maintaining sustainability and Adaptability
Keeping up with industry trends, regulatory changes, and technological advancements is
imperative for healthcare organizations. This is a step that needs to be taken to strategize
financially proactively. Wisk (2022) adds that planning for contingencies should be developed to
counter financial risks, which fosters a culture of innovation and continuous improvement to
promote resilience and responsiveness. Encouraging staff to explore eliminating non-valueadding activities, considering additional income sources, and keeping up with tech innovations
are crucial for survival in the ever-changeable healthcare environment.
Conclusion
This report accentuates critical development tendencies within financial management in
healthcare. They are a set of factors such as determining financial stress indicators, which
include rising acuity levels and reimbursement lag, among others, that challenge the longstanding myth that health care is immune to economic downturns. Furthermore, there is an
intense tendency to go to outpatient, virtual, and acute home care environments, which are fueled
by the necessity to extend present revenue sources and by the fact that there is a growing need
for remote care.
Besides, there is an apparent motion in the direction of introducing a patient financial
experience that is more flexible to the needs of different stakeholders who are paying more
attention to the options of paying off convenient and streamlined digital processes. There is a
demand for patient financing programs, which increases healthcare costs. These programs help
18
patients manage the financial problems that arise from healthcare services. Rebuilding the trust
of patients and stakeholders is very important, mainly due to the trust erosion during the
pandemic.
The report reiterates the persistent threat of cybersecurity seen in the healthcare sector,
focusing on the importance of adopting the “zero trust” approach and adequate investment in
cybersecurity measures for data protection and trust. Financing today recognizes how digital
transformation is so critical as CFOs’ and other senior leaders’ priorities are to digitize their
financial operations and integrate such systems to optimize their financial processes. Besides,
emerging payment instruments such as mobile and real-time payments would catalyze the
evolution of finance in healthcare, creating an extensive advantage for providers and an
enhanced digital finance environment.
The hinted trends demonstrate the critical necessity of healthcare sustainability only
through viable financial management strategies. These strategies are highly relevant as they help
healthcare organizations deal with economic challenges, improve patient financial interaction,
establish trust, ensure cybersecurity, and use digital processes to achieve operational efficiency.
Affordable healthcare services have also become more of a priority, and these programs also
improve patient satisfaction.
In the future, financial management in healthcare will be designed by the trends and
challenges that will insist on change. It is essential to adapt to the recurring environment of the
financial ecosystem, welcome digital changes, and give good emphasis to the patients’ financial
services. Trust-building and maintaining it with patients and stakeholders will be the key factors
to achieve and remain successful. It is also necessary to have a robust cybersecurity architecture
to protect the patient data and maintain trust. To survive in the healthcare industry, health
19
managers must consider financial management strategies that purport to balance sustainability
and patient-centered care through innovation.
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research paper rubric
A
formatting and grammar
includes
grammar & spelling
double spaced
12 point font
title page
resources page (minimum 5 beyond textbook)
length (minimum 15 pages of text)
paragraph 1
what question are you researching
topic within Healthcare..
topic within Financial Management
why is this important
paragraph 2
what is your specific purpose
explain #1 in detail
paragraph 3
what are you trying to show
evidence
#resources
sound argument
research
paragraph 4
HOW..
what are your potential obstacles
what are your limitations
what is your strategy
what steps will you take
conclusion
what did you do
what did you find
how can your paper be applied
did you find what you thought you would
what are the unanswered questions
B
C
D
F
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