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Functioning of a healthcare organization

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Functioning of a healthcare organization

For a healthcare institution to perform effectively there should be stakeholders that make

this successful. Stakeholders in such institution are mainly individuals that are directly affected

by the actions taken in a healthcare institution. A healthcare stakeholder is a person or

organization with an interest in decisions made in the healthcare industry and its subsidiaries,

such as health promotion organizations and health and social care. They have a vested stake in

proposed and planned reforms within the healthcare industry. The main stakeholders are the

patients, health professionals and policy makers. The patients are the main stakeholders as they

are the main role in stakeholder engagement.

Healthcare business plan

A business plan defines the product or service offered by a firm, discusses its market, and

introduces its management team and important workers. It examines the competitive landscape

as well as the resources and efforts required to bring the product or service to market (Ginter et

al.,2018). A part describes the current financial status and the company's projected financial

outlook for the next three to five years. Business plans are crucial tools for both start-ups and

mature firms conducting periodic evaluations. A healthcare business plan mainly consists of;

Financial plan
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One of the final elements in your business plan is the financial statements. While the

financial plan is a very important section, it’s appropriate for it to come last, because (Ginter et

al.,2018). If the executive summary is a discussion of all that is to follow, the financial section is

a recap of all that precedes it.

The products and services, marketing, operations and personnel sections demonstrate that

the business idea is feasible, but it’s the financial section that demonstrates it is viable. For many,

tackling this section last is fine because it’s the one plan element that most entrepreneurs dread.

They frequently feel like they have hit a wall when it comes to writing this section, and they

blame it for holding up their business plan. Typically, this is because they don’t understand it,

are afraid of it, or have made it unnecessarily difficult because they haven’t carefully completed

the rest of the business

The market

This much explains the location whereby it makes sure that various tasks are performed

effectively. This is mainly done by monitoring whether the potential clients are fully working.

This mainly happens by providing the necessary information about a workplace. This also is of

great importance as it also provides necessary information on the level of competition.

Services provided in these healthcare canters This explains the quality services provided by the

health practitioners. This refers mainly to the type of care they offer to their potential clients.

This is examined due to the differences in personal qualifications between different health

examiners.

Management

This refers to the legal stuff that run and regulate the activities that happen in the specific

healthcare institution. This mainly refers to the legal team that ensure the expected services are
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provided and offered to the people (Ginter et al.,2018). This mainly makes the services get

delivered in a successful way.

Different Types of Integrations in an Organization

Integration is a situation whereby organizations work together in their components. These

happens as they tend to work closely together but are independent. These leads to teamwork and

working together internally in that specific organization. There are two different types of

integrations in a healthcare institution which includes; horizontal integration and vertical

integration.

I. Horizontal integration

Horizontal integration occurs when a company acquires another company that effectively

performs the same function, such as when a biscuit company purchases another biscuit company.

This sort of integration occurs when a corporation seeks to gain a monopolistic advantage by

limiting competition and expanding market share in order to achieve specified economies of

scale.

II. Vertical integration

Vertical integration occurs when a company that operates within one section of the overall

supply chain acquires another company within the same supply chain, such as when a biscuit

company decides to purchase the trucking company that distributes the biscuits to retailers or the

company that supplies the biscuits' raw ingredients. This form of integration occurs when a

company seeks to reduce overall expenses and possibly even speed up the entire supply chain (or

at least customize the activities of the transportation company or the raw material company to its

own special needs).

Financial planning
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Financial planning is an essential management tool for health organizations. However,

this procedure is unique to each medical facility. It is created based on the action's priorities, the

model of service delivery, and the management teams' perspectives on the development of the

healthcare provider (Paul et al.,2018). For their implementation, the organization's adopted

priorities will require resources, which should be represented in its financial plan.

Evaluation and Preparation

Financial management entails evaluating the healthcare organization's financial

performance and overall operations (Paul et al.,2018). This enables the healthcare company to

make future plans. For instance, a hospital's evaluation of emergency room income reveals that it

is losing patients to a nearby facility with larger space. They may opt to plan for an extension of

their emergency room in reaction to this.

Working Capital Management

The financial management team is responsible for managing the company's working

capital, which consists of current assets minus current liabilities. Cash, marketable securities,

receivables, and inventories are examples of assets (Paul et al.,2018). Capital management is

essential for cutting expenses and ensuring the organization's efficiency. For instance, during the

refurbishment of the emergency department, the team assesses which assets can be reused and

which must be purchased with working capital

Financing

The senior management will make the final funding decision. In the instance of the

emergency room, the financial management team will bring in a specialist to estimate the cost

and duration of the refurbishment (Paul et al.,2018). They may elect to use internal money and
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then take out a small loan to cover the remaining expenses, knowing that the long-term

investment will generate more revenue to help them repay the debt.

Conclusion

In a healthcare organization there are different activities that occur. For all the functions

to occur effectively there should include the financial and accurately performing of roles .it also

involves planning and also ensuring that every shareholder actively participates. This ensures

smooth running of the specific healthcare organization.

Reference

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care

organizations. John Wiley & Sons. https://books.google.com/books?

hl=en&lr=&id=3qVFDwAAQBAJ&oi=fnd&pg=PR7&dq=Healthcare+business+plan+A

+business+plan+defines+the+product+or+service+offered+by+a+firm,

+discusses+its+market,

+and+introduces+its+management+team+and+important+workers.

+It+examines+the+competitive+landscape+as+well+as+the+resources+and+efforts+requ

ired+t&ots=4UGtqouUDK&sig=ecdNyag9ov1arcIIo_lb_1hZU7k

Paul, E., Dramé, M. L., Kashala, J. P., Ndema, A. E., Kounnou, M., Aïssan, J. C., & Gyselinck,

K. (2018). Performance-based financing to strengthen the health system in Benin:

challenging the mainstream approach. International Journal of Health Policy and

Management, 7(1), 35.

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5745866/