Healthcare administration

Write a 825-1,250 word draft of your business research paper. Use your logic model(will
attach) to develop the sequence for your paper. Include:
1.Describe the health care administration issue or barrier you are addressing.
2.Discuss resources needed, including key stakeholders, and the role they play in your
3.Identify any external or internal regulation that must be considered to ensure
compliance with any legislative, institutional, or agency policy or expectation.
4.Describe the organizational and strategical development structures/processes that
address the problem.
5.Present strategies for communicating your proposed plan
6.Use the research gathered in your literature review to provide support for paper.


Healthcare administration concerns itself with the provision of healthcare
services so that availability, accessibility, and quality of healthcare are achieved
among all communities. The goal for healthcare administrators is to foster and create
an environment and conditions upon which healthcare service providers can practice
both efficiently and effectively. Health administration also seeks to ensure the
provision of a safe, comfortable, and compassionate environment where people can
receive health services. Whereas healthcare administration is primarily concerned with
the ensuring profitability from the provision of healthcare, it is incumbent upon the
administrators to ensure that they focus on providing top quality and highly efficient
patient care as well (Fries et al., 1993).

High and Rising Healthcare Costs in Healthcare Administration

Hospitals and governments, for several years, have
been very concerned about the continuing rise of
healthcare costs that increase hospitals’ operating
costs as well as increasing governments’ budgetary
allocation to the Health departments (Fries et al.,

Health care costs have a significant impact on the
economy, the federal budget, and possibly every
family’s financial status. The significance of Health
insurance cannot be overstated as it enables children
to do well at school, working adults to be more
economically productive, and generally for the entire
population to live longer as well as healthier lives
(Obama, 2016).

Running Head: Managing High Costs in Healthcare Administration 2

Stakeholders in the Healthcare System and their respective Roles

Required Resources

The required resources are principally the human resources such as the hospital administrators,
physicians, nursing staff, government, insurance companies and other stakeholders. These stakeholders can
work together to ensure that Good Consumer Behaviors are encouraged and facilitated. Other required
resources include funds for training and capacity building for various health programs and initiatives that can
manage and mitigate the overall costs of healthcare (Bodenheimer, 2005).

Stakeholders in Healthcare

Roles of Stakeholders in Managing and Mitigating the High Costs

of Healthcare

The following are mainly the
stakeholders who influence
management and mitigation of the
rising and high costs of healthcare:
 Hospital Administration
and Governing Boards
 Pharmaceutical Companies
 Doctors/Physicians
 Health Insurance
 Government Agencies
 Employers
 Patients and the general
(Fries et al., 1993).

 The hospital administration has the role of managing their
operating costs such as wage bill, consultancy fees, etc. They
can mitigate these costs through employee rationalization. The
administrators and the respective boards can make policies that
can manage costs
 Pharmaceutical companies play the role of managing and
mitigation of the ever-rising costs of drugs
 Doctors’ charges are usually significant components in the high
costs of healthcare
 Insurance companies can play a role in the management of the
rising premium rates for health coverage plans as well as the
strict and prohibitive requirements
 The government can play the role of an introduction of vital
legislation to manage the overall costs. The government can
also sponsor health programs and initiatives that promote
preventive health and risk lifestyle behavior change
 Patients and the general public can in the long-term help reduce
costs of healthcare by focusing on preventive measures and
lifestyle changes
 Employers are some of the highest consumers of good quality,
accessible and low-cost healthcare services since a strong staff
means a more productive staff (Fries et al., 1993).

Running Head: Managing High Costs in Healthcare Administration 3

Internal or External Legislation Affecting the High Cost

External Legislation

The Affordable Care Act (ACA) is an act that
mandated minimum benefits for all plans regardless
of a specific individual need. It legislated that all
health plans have to cover specific essential
benefits. These minimum benefits caused an
estimated 10% rise in health insurance premiums
since the plans enforced that even childless
individuals and couples were required to pay for
insurance covers for pediatric care (Fries et al.,

Internal Legislation

The hospital healthcare administrators and boards of
governors can internally legislate against kind of
nursing practice model that is cost-effective, that is,
the primary nursing practice. They can also create
favorable employment policies for physicians and
nurses (Bodenheimer, 2005).

Running Head: Managing High Costs in Healthcare Administration 4

The following are some of the reasons for the high healthcare costs:
 New technologic innovations
 Fewer nursing staff
 Use of expensive new diagnostic tests and treatments
 Increased costs of health care goods and services
 High costs of marketing of new drugs, devices or procedures
 Unnecessary overuse of specialists
 High hospital administrative costs
 High Doctors’ charges
 Malpractice costs especially regarding insurance claims
 The increase in the numbers of the aging population (Bodenheimer,

Plan Communication Strategies

The following are the communication strategies that can be implemented as part of the more unique
plans to address the high costs of healthcare: In-service training of key staff, Presentations at their
conferences/meetings, Weekly newsletters, newsletters, website publications, meetings and group email
communiqué (Bodenheimer, 2005).

Organizational and Strategically Development Structures/Processes

 Conduct and execute strategy meeting of all stakeholders
 Implement pieces of training and capacity building sessions with internal stakeholders
 Make policies that facilitate preventive and lifestyle behavior change
 Ensure adherence and compliance with various regulatory requirements (Bodenheimer, 2005).

Running Head: Managing High Costs in Healthcare Administration 5


Bodenheimer, T., (2005, June). High and Rising Health Care Costs. Part 2: Technologic