Health and Medical Financing and Budgeting Discussion
1.Today’s summary revolves around Financing and Budgeting for the proposed expansion into the Golden Age Hospital and Community Clinic. In accomplishing this subject, topics will range from the how the cost of facility construction, equipment and instrumentation will be fully paid for by the state of California through a grant, how all seniors above the age 65 who come to us for care, will only have Federal Medicare health insurance and from a financial standpoint, how both entities will be financially balanced, as in income and Medicare payments will fully cover operating cost.
Also covered under today’s discussion will be the Medicare Prospective Payment System, specifically, how the hospital is reimbursed per procedure or treatment and is based on a pre-defined financial sum and not on the length of stay or severity of services provided. Utilizing the specialized services proposed in Case One and finalized in Case Two, a sample budget has also been provided, utilizing the payment amounts provided, along with additional miscellaneous expenses. Finally, a forecast of profits or loss for the GAH for the first year will be introduced along with recommendations to move forward from this point, within the conclusion of today’s topics.
- The financial structure for development and operation will be determined by all the budget developed based on the infrastructure requirements set up by the project development team. There’s a lot to be taken into consideration since the finances will be provided by the state. This will include construction costs, medical instruments, communication systems, and licenses, (Bodie& Merton, 2000)
The type of medical insurance cover for the GAH project will be determined by the Federal medical institutions for the majority if not all the services for the senior population was demographic. The operational costs for the project will also be secured since the payments from the Federal Insurance will be used for this specific function.
The Medicare Prospective Payment System is set in such a way that it maximizes the priority on the medical needs of the senior population that will be utilizing the hospital’s services in that community and the surrounding municipalities. Reimbursements are also catered for by the government for the GAH project for different treatment procedures (Golembiewski, & Rabin 1997)
The projected financial forecasts for the first operational year are also included as part of the finances needed for the development of the project. The services offered are also determined at this stage of project development.