Healthcare finance is a complex field that involves allocating resources to ensure the provision of quality health services to individuals and communities. The primary goal of Health Care finance is to ensure that healthcare services are accessible, affordable, and of high quality for all individuals, regardless of their income or social status (Ritsema, 2022). In recent years, the Health Care industry has faced numerous financial challenges, including rising costs, increased demand for services, and changes in the Health Care delivery system (ERP, 2022). The consequence of rising prices is that people are beginning to postpone their doctor visits and other preventive treatments. Thus, in the end, the overall health statistics of the population begin to fall noticeably (Bailey, 2023). The key issues and challenges in health care finance are high prices, unequal distribution and an increasing number of migrants.
One of the critical challenges in Health Care finance is the rising cost of Health Care Services, as mentioned above. In the United States, healthcare costs have been increasing at a faster rate than the overall economy, and this trend is expected to continue in the future. This rapid increase in healthcare costs is due to several factors, including an aging population, advances in medical technology, and the increasing prevalence of chronic diseases. Moreover, infectious diseases have ceased to be treated with antibiotics (Dadgostar, 2019). It means that new methods of treating infectious diseases and others will be used every time. Accordingly, these are experiments in the healthcare system, new ways of treatment, and the competition of consumers to buy more effective therapies for themselves. The result of all this will be an increase in the cost of health services.
Another challenge in Health Care Finance is the unequal distribution of resources and access to care. Despite significant advances in medical technology and treatments, access to health care services remains unequal across different population groups. This disparity is due to a combination of factors, including income, race, and geographic location. For example, individuals in rural areas often face significant barriers to accessing health care services, such as a shortage of Health Care providers and limited insurance coverage (Stein et al., 2019). This unequal distribution of resources can seriously affect the health and well-being of individuals and communities.
Moreover, every year the number of migrants who are not citizens of the United States of America is increasing. Accordingly, medical services will cost much more for non-citizens than citizens (Chang, 2019). The result of such phenomena will be considered the unavailability of medical services for a significant population since emigrants significantly affect the population growth of a particular area (Kaihlanen et al., 2022). Further, it can be assumed that the frequent demand for medical services by people from other countries, the reason for which is the difficulties of adapting people to a new area (Gong et al., 2019). Culture shock, climate, and many other factors significantly affect human health both physically and mentally. However, the high medical service prices cause significant difficulties for emigrants, exchange students, and tourists.
One of the potential solutions to these challenges is the implementation of value-based payment models. These models aim to align incentives between providers and payers and focus on the quality of care rather than the service volume. This approach is based on the premise that higher-quality care will lead to better health outcomes and lower costs in the long term. For example, the CMS has implemented several value-based payment programs, such as the Accountable Care Organizations and Charity Healthcare Fund (Brice et al., 2021). These programs incentivize providers to deliver high-quality care and improve patient outcomes while reducing costs for patients and payers. However, the problem is that there is still no appropriate assessment of the quality of healthcare and there is a lack of proper regulation (Multiview ERP, 2022). For example, somewhere, the functional aspects of services are well evaluated, rather than the technical aspects. Somewhere on the contrary, much attention is paid to the technical aspects (Endeshaw, 2021). However, people can focus on a healthy diet and lifestyle, which leads to less use of medical services.
Another potential solution to the challenges in healthcare finance is the implementation of health savings accounts (HSAs). HSAs are tax-advantaged savings accounts that individuals can use to pay for medical expenses (HealthEquity, 2023). They are often paired with high-deductible health insurance plans, giving individuals greater control over their health care spending. By providing individuals more control over their health care spending, HSAs help to reduce the overall cost of health care services. Furthermore, HSAs promote personal responsibility for healthcare decisions and encourage individuals to seek high-value care (Liu et al., 2021). Health Saving Accounts provide more economical use of medical services with lower costs but with an increased opportunity to receive a quality service (Glied et al., 2022). However, it is difficult for migrants to obtain an HSA, so they have to take good care of themselves (Blanchet, 2020). Every culture has its methods of care, and people should study them. Moreover, now is the Internet age, and it will not be difficult for people to search for helpful information and advice (Ausili et al., 2020). Consequently, this will reduce the risk of having health problems in a foreign country.
In conclusion, healthcare finance is a critical issue that affects the health and well-being of individuals and communities. The rising cost of health care services and unequal distribution of resources are two critical challenges in health care finance. There are several potential solutions to address these challenges, including the implementation of value-based payment models and health savings accounts. Collaboration between various stakeholders in the healthcare industry, including healthcare providers, is crucial for ensuring that all individuals have access to top-quality healthcare services that are both affordable and easily accessible. Working together, these groups can ensure that everyone, regardless of their financial or social status, is able to receive the care they need to maintain and improve their health.
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