Lopez FN UNIT 1 Q.docx - MHA 5001 Health Care Financial...

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MHA 5001 Health Care Financial ManagementUNIT I – Article CritiqueJoverth John LopezColumbia Southern University
IntroductionAs hospitals rise to meet the challenges of COVID-19 head on, the virus and its effect on the nation have created historic financial pressures for America’s hospitals and health systems. Hospitals have canceled non-emergency procedures and people are postponing care asquarantine laws are initiated to stop the spread of the virus. Treatment for COVID-19 has created incredible demand for certain medical equipment and supplies as the virus has disrupted supply chains, increasing the costs that hospitals face to treat COVID-19 patients. At the same time, COVID-19 has caused unprecedented job losses, leading to a rise in the number of uninsured as well as unemployment (American Health Association, 2020). In this article we will examine the effects of COVID 19 and a more modern way of cost accounting approach in healthcare as written by Jeni Williams. Summary and AnalysisIn the light of the COVID 19 pandemic, hospital revenues have declined sharply. It is because to increase personal and public safety precautions across the country. Thus, the delays of non- emergency care, primary care visits, and other specialty visits. As a result, many hospitals have cancelled elective surgeries and non-essential procedures are delayed as well. Another example is the decrease of emergency room visits as compared to last year (American Health Association, 2020). For some, delaying care as a result of the pandemic could create complications later on but it still remains to be seen what the long term effects of the delay of
care. These factors have significantly reduce the revenue for all hospitals and health systems across the country (Rae et al, 2020). Challenges The expenses for the COVID 19 cases are higher because of the scarcity of supplies and resources available to treat patients and the high cost of labor. Overall, the cost of treating patients with COVID 19 could exceed $139 - $558 billion, depending on how many people are infected without counting the additional cost of medical supplies, equipment, treatment, and medication (FAIR Health Incorporated, 2020). With the cancellation of elective procedures, it will only add to the loss of profit. Thus, cost data accounting should be reviewed and approached correctly while tackling the COVID 19 pandemic. What is cost data accounting? To put it simpler it is a factual information concerning cost, material, overhead, and other elementswhich are expected to be incurred or incurred by the contractor in performing the contract (lawinsider.com, n.d.).

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