Overview of Healthcare
As hospitals and healthcare facilities try to cut down their expenses, healthcare administration is gaining in popularity. It is estimated that hospitals in the developed countries spend more than 20 percent of their costs on administering the facility. Similarly, a recent survey by US Healthcare Administration indicates that hospitals hiring prominent third-party healthcare company saved 20 to 35 percent of their expenses compared to healthcare facilities that did not contract a healthcare development firm. In addition, the cost reduction does not take into account quality service issues.
Benefits of Healthcare Administration
Since 1990s, when US Senate started the debate on offering additional healthcare benefits to the citizen, the cost of administration increased significantly as hospitals needed to budget their capital, accordingly. In fact, most public and private hospitals in the developed world hire third-party contractors to run day-to-day affairs of the facility. Healthcare administration is not restricted to hospitals, only. It includes every type of major healthcare network, surgical centers, outpatient clinics and medical schools.
These days, hospitals and healthcare facilities are run like Fortune 500 corporations, which helps healthcare managers save costs and increase the quality of customer service. In fact, many venture capital firms, banks and financial institutions do not consider an application for funding if the healthcare applicant does not contract a well-known healthcare administration firm. Actually, it will not be an overstatement to suggest that investors in healthcare want to know the feasibility of investing in the healthcare market. Accordingly, it is common for large healthcare firms to publish quarterly financial statements of their activities. To increase social acceptance, many hospitals are also relegating their duties to healthcare management firms who run the corporate social responsibility program of the hospital. In essence, healthcare administration firms are undertaking diverse duties such as marketing and advertising.
Nobilis Health – Case Study
A good example of healthcare administration firm is Texas based, Nobilis Health Corporation. Listed on the New York Stock Exchange, the firm operates more than 100 surgical centers in Texas. Recognized as an industry leader, Nobilis Health Corporation develops its own healthcare programs by owning medical facilities. The unique operational setup allows the management to provide quality health services at affordable price. As a result, the quality of patient service is far greater than comparable setups.
In partnership with some of the best surgeons in United States, Nobilis Health operates outpatient surgical units, mainly in Dallas and Houston. They offer three core businesses including specialized surgical units, integrated marketing services, and management services.
Offering a diverse management service, marketing leverages the use of both print media and online channels. The objective of marketing team is educating consumers and patients. Education consists of specific disease state, condition awareness, symptom recognition, availability of treatment options, practical options for patients and promotion of dialogue between surgeons and communities. Similarly, management and operations services help identify and enhance operational effectiveness. As such, management services include financing, licensing, management, operations, bench-marking, strategic planning and legal services.