Running: ORGANIZATIONAL EFFORT TO CURB INSURANCE PROBLEMS

Organizational effort to curb insurance problems

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Organizational effort to curb insurance problems

Health insurance is an important aspect of healthcare service provision and

underinsurance of many people greatly contributes to the losses recorded in the books of
accounts of most of the United States healthcare institutions. According to Shaw (2013), the
issue has posed a challenge to these institutions bringing a threat to the existence of the industry
in the future. An interview with the financial manager and the records manager of St. Joseph
Hoag reveals that insurance dictate the prosperity of any health organizations. A financial
manager handles creation and implementation of the budgetary designs defining the sources of
funds and the expected expenditure patterns. The manager interviewed revealed that health
insurance has greatly affected expansion of this organization, salaries and wage payment and put
a threat to the future of the institution. On the part of record manager, the overall income from
insurance increased but not proportionate to the number of patients seeking medical services in
the institution leading to low income.
Health insurance is a great requirement for many people and affects proper service
provision to patients. It is, therefore, the role of both the government and health care institution
to provide ways that encourage health insurance. A formal announcement of addressing the issue
came into place in 2013 when the president of St Joseph Hoag; Dr. Afable made the
announcement (Mag Inside, 2013).
The interview revealed that the organization has played a major role in the provision of
services for the patient. St. Joseph Hoag Health believes in the provision of services no matter
the situation. One of the ways through which the organization engages in solving the issue of
non-insurance is the provision of information about insurance (Mag Inside, 2013). The
organization educates its patients on the available insurance for the people with different
packages that suit different individuals (Mag Inside, 2013). Another advance to the insurance

Organizational effort to curb insurance problems

problem is the Covered California health insurance program. It is set up under the Federal
Affordable Care Act, and St. Joseph Hoag is a part of it providing the patients with was to enroll
and reduce the cost of treatment.
The government is underway to improve the ability of people to secure insurance through
wage increment (AHRQ, 2002). Most of the people are unable to purchase insurance due to the
cost and low income. Improving the income is one way that ensures that insurance is purchased.
The organization is planning to integrate its service payment with the recently established federal
and affordable care insurance- Covered California. The patients seeking services in the
organization should enroll to one of the main insurance companies
Insurance purchase highly gets determined by the level of income of individuals. With the
changing economic dynamics in the labor market, many people are getting unemployed. Lower
and lower income levels exhibit with expenditure increasing rapidly. The two factors are
expected to affect insurance level by reducing insurance and increasing costs to health care
organization.
Insurance does not take care of all the costs incurred in healthcare despite the high
premiums paid. It is therefore not reasonable to purchase it. It is more rational to make payments
when sick rather than buy insurance. The finance manager and those working in the finance
management department believe that insurance purchase by many citizens will significantly
reduce the cost of healthcare services. The records manager argues that increased insurance most
of the heath care institution might get out of business.

Organizational effort to curb insurance problems

References
Agency for Health Research and Quality AHRQ. (2002). Reducing Costs In the Healthcare
System: Learning from What Has been. Retrieved from
http://archive.ahrq.gov/research/findings/factsheets/costs/costria/costria.html
Mag Inside (2013) Capturing Value from Digital Transformation: Insurance Exchanges and
Accountability in the New Paradigm. Retrieved from
http://merage.uci.edu/Resources/Documents/Merage_Magazine_2013.pdf
Shaw, E. K., Howard, J., Clark, E. C., Etz, R. S., Arya, R., & Tallia, A. F. (2013). Decisionmaking processes of patients who use the emergency department for primary care needs.
Journal of health care for the poor and underserved, 24(3), 1288-1305.