Surname 1
Hospital Budgeting Ethics
Atia Hanson
ORG 6660 Fiscal Administration in Mental Health Care Systems
Instructor: Matthew Geyer
June 16, 2020
Hospital Budgeting Ethics
Ethics, EBM, and hospital management discuss how hospital management should use evidence base medicine (EBM) to solve ethical issues that they face daily. In 2003 when the article was written the authors say that EBM was relatively a new concept and that it would be a powerful tool to use to find solutions for the ethical issues for hospital management in the hospital setting. They also discussed the down side to using EMB. It is not always easy to deal with stake holders being hospital management, and EBM could allow stake holders to have the upper hand. Hospital management will always have ethical issues that will pertain to funding, quality of patient care, staff and issues dealing with the community. In the article it was discussed how Germany was switching over their hospital payment system to disease related group (DRG) and how EBM would be a benefit, and how hospital management would deal with the ethical issues that would arise and try to solve them.
The article clearly states that evidence base medicine would help hospital management with ethical issues in a hospital setting. The hypothesis of this article was the use of EBM was a tool that should be used to develop a more ethical foundation for hospital management. Biller-Andorno, Lenk and Leititis have defined and explained all key terms within the article so that it was easy to understand except for one important term.
Review of Literature
Biller-Andorno, Lenk and Leititis have cited sources for their article that were pertinent to the topic. The articles used were articles on evidence base medicine, ethics and hospital policy with many of these articles being published between 2000 – 2002. There were some that were published in the 1990’s. I did not find this article to broad or too narrow, the authors stayed on the topic presented. I must admit at first, I was lost when the authors presented the fact that Germany was changing their payment system I did not know how this was related to the topic. But as I read over the article again I realized that Germany was going to calculate the hospital budget on only DRGs. This could pose as an ethical issue for the hospital management because Biller-Andorno, Lenk and Leititis stated that this would lead to some hospitals that had high overhead from their emergency an intensive care units’ their resources would need to be cut. This will lead hospital managers to try to take money from other units and staff which has ethical implications cutting funds from one place and using them somewhere else.
The conclusion discussed how hospital management must address ethical issues. Biller-Andorno, Lenk and Leititis implied during the conclusion that the increase of using EBM in hospital management could become a tool used as a power .
1. Surname 1
Hospital Budgeting Ethics
Atia Hanson
ORG 6660 Fiscal Administration in Mental Health Care Systems
Instructor: Matthew Geyer
June 16, 2020
Hospital Budgeting Ethics
Ethics, EBM, and hospital management discuss how hospital
management should use evidence base medicine (EBM) to solve
ethical issues that they face daily. In 2003 when the article was
written the authors say that EBM was relatively a new concept
and that it would be a powerful tool to use to find solutions for
the ethical issues for hospital management in the hospital
setting. They also discussed the down side to using EMB. It
is not always easy to deal with stake holders being hospital
management, and EBM could allow stake holders to have the
upper hand. Hospital management will always have ethical
issues that will pertain to funding, quality of patient care, staff
and issues dealing with the community. In the article it was
discussed how Germany was switching over their hospital
2. payment system to disease related group (DRG) and how EBM
would be a benefit, and how hospital management would deal
with the ethical issues that would arise and try to solve them.
The article clearly states that evidence base medicine would
help hospital management with ethical issues in a hospital
setting. The hypothesis of this article was the use of EBM was
a tool that should be used to develop a more ethical foundation
for hospital management. Biller-Andorno, Lenk and Leititis
have defined and explained all key terms within the article so
that it was easy to understand except for one important term.
Review of Literature
Biller-Andorno, Lenk and Leititis have cited sources for
their article that were pertinent to the topic. The articles used
were articles on evidence base medicine, ethics and hospital
policy with many of these articles being published between
2000 – 2002. There were some that were published in the
1990’s. I did not find this article to broad or too narrow, the
authors stayed on the topic presented. I must admit at first, I
was lost when the authors presented the fact that Germany was
changing their payment system I did not know how this was
related to the topic. But as I read over the article again I
realized that Germany was going to calculate the hospital
budget on only DRGs. This could pose as an ethical issue for
the hospital management because Biller-Andorno, Lenk and
Leititis stated that this would lead to some hospitals that had
high overhead from their emergency an intensive care units’
their resources would need to be cut. This will lead hospital
managers to try to take money from other units and staff which
has ethical implications cutting funds from one place and using
them somewhere else.
The conclusion discussed how hospital management must
address ethical issues. Biller-Andorno, Lenk and Leititis
implied during the conclusion that the increase of using EBM in
hospital management could become a tool used as a power
struggle between hospital management and stake holders. They
stated, “Will EBM be able to realise its positive potential as a
3. useful instrument for quality management and resource
allocation, or will it be used as a profit oriented “tool for
excising large areas of health care expenditure”?” The ones
that will be affected will be the patients, staff and the
community as hospital management navigate ethical issues. The
recommendations that were suggested were that ethical codes
need to be established like those of the American Hospital
Association. By having ethical rules in place, it would be
harder for stake holders to use EBM for financial gain and it
would be easier for hospital management to address the ethical
issues of the hospital.
Running head: ORGANIZATION WIDE OPERATING
BUDGET1
ORGANIZATION WIDE OPERATING BUDGET 2
Organization Wide Operating Budget
Atia Hanson
ORG 6660 Fiscal Administration in Mental Health Care Systems
Instructor: Matthew Geyer
June 8, 2020
4. Organization Wide Operating Budget
The operating budget of an organization encompasses the
expenses and revenues that are expected from one or more
financial years. Normally, the operating budget of an
organization is formulated by the management at the beginning
of every fiscal year. It shows the activities that are expected to
take place during that particular financial year. These budgets
can be supported by a number of subsidiary schedules that
contain more detailed information. For instance, they may
separate supporting budgets regarding inventory, the cost of
goods, or even the payroll. The actual results of expenses and
revenues are then compared to the operating budget in order to
note any variances that may have occurred. After the variances
have been noted down, the management can then take the
necessary actions that are needed to bring actual results into
line with the estimated operating budget.
The organization chosen for the purpose of this task is known as
Star Medical Center (SMC). This organization is located at
Dallas, TX. SMC is one of the largest medical health facilities
in the world. It has some of the greatest minds in the field of
medicine. The organization nurtures creativity, institutional
collaboration, and innovation because it appreciates the fact that
when people stand together, they can push the limits to what is
possible. SMC operates more than 50 hospitals and
approximately 400 other healthcare facilities that include
surgical hospitals, ambulance surgery services, urgent care
centers, surgical hospitals, and clinics. The organization was
founded in the year 1980. SMC is in the business of providing
outpatient and acute care services. Some of the services that the
5. organization provides are emergency medical care services,
inpatient care, radiology services, and cardiac care. The
company also operates CRX Health
Solution
s, a subsidiary company that provides revenue management
services and patient communications services.
The mission of SMC is to provide quality healthcare services
and compassionate care in the communities that the organization
operates in. the vision of the company is to ensure that is
quality healthcare has been delivered at the right time and at the
right place (Sperling, 2015). The goal of the organization is to
show compassion and respect to all stakeholders and portray the
highest levels of integrity, ethical conduct, and inclusivity in all
the societies that the organization operates in.
The required number of employees for SMC health facility is
1300. Human resources is one of the core elements of health
system inputs. In the healthcare industry, human resource
entails different kinds of clinical and non-clinical staff that are
responsible for both the health of the public and individuals.
The delivery of the organization depends on the skills,
knowledge, and motivation of the individuals who are
responsible for delivering health care services (Dropkin, Halpin
& LaTouche, 2007). Further, SMC ensures that they have
6. achieved a proper balance between physical and human
resources. This is crucial for ensuring that there is a proper
balance between caregivers and health promoters which is
necessary for the success of the healthcare system.
SMC healthcare facility serves all types of client groups. This
involves patients of all ages, ranging from kids to adults. the
patients that are served in the facility use several methods of
payment. These methods include Medicare A&B, Medicare
PFFS plans, AARP, ACS, and Accredo. This depends on the
method of payment that each specific patient prefers.
SMC healthcare organization has a number of facilities that
enable it to provide quality healthcare to its customers. Before
acquiring these facilities or equipment, the organization came
up with a strategic hospital facility plan that took into
consideration financial feasibility, operational overview, and
market analysis (Nowicki, 2018). The organization considered
the facilities that would be needed to accommodate the
projected demand, the services areas that had increasing or
decreasing demand, and the demographic elements of the target
clientele.
The facility has adequate premises that cater for the most
crucial needs of target customers. This equipment enables the
professionals to assess the medical conditions of patients in the
most effective way. The different types of equipment and
facilities available in the organization serve different purposes
7. to ensure that patients are handled in the most appropriate
manner.
Some of the equipment that the organization has includes
diagnostic equipment, durable medical equipment, life support
equipment, treatment equipment, and medical laboratory
equipment.
ReferencesDropkin, M., Halpin, J., & LaTouche, B. (2007). The
budget-building book for nonprofits (2nd ed.). Jossey-Bass.
Nowicki, M. (2018). Introduction to the financial management
of healthcare organizations. Health Administration Press,
8. Chicago, Illinois.Sperling (2015, February 20). President
Obama’s 2016 budget: What does it mean for mental
health? https://www.nami.org/About-NAMI/NAMI-
News/2015/President-Obama-s-2016-Budget-What-Does-It-
Mean-f (Links to an external site.)