The research was conducted by the https://essaysmasters.com/buy-argumentative-essay-online/

Question 1:
Australia is implementing an Activity Based Funding (ABF) model to address the issue of inequitable funding of hospitals, which promotes poor service delivery. Previous funding models created frameworks that promoted finance allocations based on the previously allocated amounts rather than considering the variability of diverse aspects relating to effective health care. Records from the National Health and Hospitals Reform Commission (NHHRC) concerning health expenditure projected an increase in healthcare costs for hospitals in subsequent years. In this regard, NHHRC recommended the adoption of activity-based funding to facilitate cost-effective healthcare. An analysis of the expected ABF demonstrates that healthcare sector would considerably benefit from minimized health costs and streamlined patient care. ABF presents a framework upon which Australian hospitals would generate revenue rather than depend on restrictive budgetary allocations. In addition, this approach allows sharing of health care costs among various stakeholders.

Question 2:

Product costing describes the process of monitoring and evaluating various aspects relating to the expenses incurred through the creation and sale of a product. Within the healthcare sector, product costing refers to the identification and analysis of expenses incurred in various aspects of healthcare provision. Product costing is a vital process concerning effective definition and implementation of an organization’s business strategies. To manage funding within healthcare sector effectively, it is vital that the concerned parties have a comprehensive overview of costs relating to a particular process. Product costing facilitates the analysis of costs at different levels, and allows comparison of inputs and outputs, which is a crucial aspect in profit analysis and evaluation of performance within an organization.

Product costing enhances accuracy concerning the monitoring of expenses, matching expectations, decision-making and the evaluation of development projects within an organization due to its in-depth cost analysis. Thus, by using the results obtained from product costing, healthcare centers can easily plan on their expenses and enhance various aspects of patient care such as patient-data collection.

Question 3:

Cost-Based Funding refers to the form of reimbursement in which the costs incurred by patients influence payments. This approach employs the framework in which fund allocations to hospitals are a subject to records on allocations of previous years. Adjustments for allocations consider such aspects as inflation and consumer price index. The awarding of funds commences after a formal agreement between the state health authority and health service. The scope of Cost-Based Funding creates a framework that rarely supports any form of incentives that may enhance effectiveness and economic viability of healthcare. This is because budgetary allocations to healthcare centers depend on allocations for previous years rather than adopting flexible allocations that enhance effective service delivery. Thus, it hampers the expansion of new areas within poorly funded sectors.

Needs-Based Funding refers to an approach of allocating resources according to the needs at the individual level and population level. This approach incorporates both the need and non-need related aspects to project the level of needs among individuals and groups, and distributes financial support accordingly. At the individual level the funding agency channels money to hospitals to cater for health needs of an individual patient. Regulations concerning the provided funds require healthcare centers to offer services that translate into the allocate amount depending on a patient’s healthcare needs. At the population level the funding agency ensures the channeling of funds to the regions based on the amounts that reflect those regions’ population size.

Population-Based Funding defines a reimbursement approach that focuses on ensuring fair distribution of funds between District Health Boards (DHBs) in accordance to the needs of the population. This method focuses on eliminating variability in expenses between hospitals, and promoting a variety of incentives that facilitate efficient and equitable healthcare. Population-Based Funding uses estimates on expenses to project the outcome concerning certain levels of fund allocations. Crucial aspects in this regard include health need index and population projections. This approach has minimal effects on the government’s budgetary process and creates equal opportunities for enhancement of healthcare.

Question 4:

Activity-Based Funding (ABF) possesses several benefits in both the social and economic aspects. First, ABF promotes unbiased funding by creating a framework upon which hospitals at the same level receive equal allocations. Secondly, ABF introduces various forms of incentives for hospitals and thus enhances effective functioning and service delivery. In addition, it promotes cost-efficiency through adoption of non-mixed labor. Another benefit of ABF is mitigation of cream skimming due to the regulations on funding that allows easier evaluation of a patient’s health complexity. In this regard, ABF promotes equal access to healthcare among patients, irrespective of any perceptions of risks associated with their condition. Policies relating to ABF create a framework that promotes transparency on fund allocation and government spending. Thus, taxpayers can hold policy makers and other stakeholders accountable for misuse of funds. This approach also promotes effective cost accounting and standardization of service delivery.

Question 5:

The Australian National Sub-Acute and Non-Acute Patient Classification (AN-SNAP) is the classification system designed to address non-acute and sub-acute areas of care. The scope of this system entails aspects relating to the management of funds and healthcare in the field of concern. The creation and implementation of AN-SNAP largely resulted from the need to define appropriate approaches concerning health care needs for varying patient types within the healthcare system. AR-DRG defines a scope that largely focuses on the acute patients and disregards other crucial areas within health care that could provide comprehensive information on the appropriate approaches to manage health care expenses. The adoption of AN-SNAP provided a framework that could facilitate comprehensive patient-data collection.

References

Activity Based Funding National Framework and Implementation Plan.pdf

Activity based funding for Australian public hospitals: Towards a Pricing Framework. IHPA.

Retrieved from www.ihpa.gov.au/internet/ihpa/publishing.nsf/

Casemix _Product costing_CDQ382.pdf

CDQ382 Week 6 Sub-Acute and NonAcute.pdf

Funding Models and Casemix.pdf

Healthcare Finance management CHAP 5 Courtney briggs.pdf