Budgetary limitations of public hospitals

Public Hospitals

Public hospitals have budgetary limitations and must meet all expenses within their allocated budgets. Many people who come to public hospitals for treatment do not have insurance and are not financially well off. To provide quality treatment and services to these people within their allocated budget is the greatest challenge of all for hospital managers. The greatest challenges for hospitals are ‘Financial Challenges’. Hospital managers have to provide quality care to patients with very limited resources. This is exacerbated by the increase in the aging and the continuous increase in energy costs and the increase in the cost of everything plus rising pay scales of the staff. To earn the best grades in writing Business Plans, Case Studies and work assignments in you should choose an academic writing service that will meet your best writing needs.

Meeting Rising Costs

To meet rising costs, the manager must implement a well-planned strategy as the central tool for stretching resources to meet all requirements. Private hospitals do not face budgetary problems because patients who go for treatment to private hospitals have medical insurance or have their own resources to meet treatment expenses. Because of a cut in funding in most areas including hospitals, managers must manage a certain standard of patient care and quality services in hospitals that they manage and run or they could face budget cuts. Alternatively, funding will have to be raised in real terms which would undoubtedly put pressures on the government to maintain a certain level of patient care and wellbeing in public hospitals.

Other Factors

Pressure arising from an increase in population and other factors is expected to increase at four percent per year. If NHS funding is curbed in real terms the NHS will experience a gap of a few billion £ by 2021 unless the productivity of hospitals is increased and bettered. The NHS is dedicated to improve output and efficiency by around four percent per year to offset the cost of increased expenses due to inflation and the rise in the cost of living. This will invariably reduce the shortfall substantially if the current rate of funding is maintained. However, to close the gap between funding and increase in expenses, the NHS must continue to implement austerity measures and increase productivity.

However, the position of the government exchequer makes the increase in funding unlikely because this would affect other essential public services or would require additional taxation. If spending were controlled and curtailed, then the NHS would need efficiency savings of around two percent to meet current challenges. Managing demand, specifically among people with long-term terminal illnesses will critically increase costs equal to or more than the cost of the aging population growth.

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