Is health care a “business?”


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Is health care a “business?”


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EXERCISE PROBLEM

1.Royal Hospital currently receives more than 10,000 boxes of pharmaceutical supplies per month. All of these items are manually inspected and logged to ensure adequate receipt prior to payment. Eight employees manage receipts and deliveries, while four employees

manually record and track them. A new software package that allows automated scanning of bar codes will replace all or some of the employees used for manual tracking, or at least allow redeployment to other areas of the hospital. What are some of the key questions that must be explored to fully understand the impacts of technology and whether a capital investment should be made to substitute capital for labor?

Chapter 2

DISCUSSION QUESTIONS

1. Is health care a “business?”

2.What are five of the key factors that distinguish a hospital from other industrial organizations?

3.Define an “average” hospital in terms of size (employees, revenue, beds).

4.What is the difference between Medicare and Medicaid?

5. What is a payer? What impact do payers have on a hospital’s revenue?

6.What is the role of a teaching hospital in the healthcare industry?

7.What makes governance of academic hospitals more complex than community hospitals?

8.What are the different types of managed-care plans?