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HS440 Unit 1 Financial Challenges in Health Care Environments_Wesley Smith (1).docx

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1Financial Challenges in Health Care EnvironmentsWesley SmithPurdue University GlobalHS440: Finance for Health CareProfessor David VerasOctober 17, 2021
2Financial Challenges in Health Care EnvironmentsHospitalsHospitals offer diagnostic and therapeutic services to patients who need more thanseveral hours of care; however, numerous hospitals are mainly involved in ambulatory services(Gapenski, 2016). As hospitals attempt to overcome the setbacks of the COVID-19 pandemic,coronavirus and its negative impact on the citizens have led to historical financial burdens forAmerican hospitals and healthcare systems. Coronavirus treatment has led to the implausibledemand for special medical equipment and provisions such as the ventilator since the pandemichas negatively affected the economy. Hence, the hospitals are forced to increase their costs fortreating patients. As a result, the hospitals are experiencing a decline in inpatient services andoutpatient visits, generating a new financial burden on hospitals, in addition to the current fearsconcerning low reimbursements from federal government financiers and coverage shifts. Mosthospitals are experiencing a decline in revenue and an increase in costs. It is challenging to haveaccess to capital due to their payer mix; hence, they cannot borrow or drown cash from reservesto meet their operational costs.

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