Managerial Planning and Containment (Essay Sample)

Cost containment refers to the judicial ways of limiting financials in different institutions. Cost containment can be carried out ion both private and public sectors to enhance profitability and reduce unnecessary budgets that might lead to losses. The main aim of businesses is mainly to make profit, hence financial containment help to have effective planning to help in limiting expenses and increasing profits. However, the containment must ensure smooth and effective running of the institutions. Healthcare system has adopted cost containment as a form of enhancing patient’s and professional services. Health care services are facilitated through enabling effective cost containment systems that ensures the patients receive professional services as well as ensuring the medical practitioners are comfortable and satisfied with the financial budget they accommodate. It also ensures that the relationship between the practitioners and the patients is catered for to ensure smooth running of the system. In most cases, private healthcare facilities adopt to the co0ntainment system, to ensure high profits and protect their reputation. On the other hand, public facilities user containment ensure that the funds set aside by the government are well utilized to achieve the needs of the patients and promote social; well-being of their people. Therefore, cost containment in healthcare helps to facilitate services and promote emergency services. The containment has effectively helped healthcare system to have proper planning, reduce healthcare costs, save money and improve their services through managerial planning and containment.
Based on the main goals of private and public healthcare insurance covers, the former seeks to make more profit and enhance the quality of its services to attain good reputation and attract more customers (Hakkinen, 2019). On the other hand, public healthcare insurance seeks to provide basic and effective services to the patients as the employers are paid by the government as compared to private insurance where the employer is the main shareholder. Hence, private insurance uses cost sharing strategy while then public insurance uses subsidizing strategy to facilitate cost containment. Cost sharing ensures that the private insurance shifts the burden and task of catering for the increased costs of medicine and their services to the patients. The patients will feel the high cost of the services and hence reduce the demand for the services. This will make the potential patients adopt good lifestyles and take care of themselves more top avoid unnecessary costs that can be avoided. This is because when services are free and readily available; there will be many cases of diseases as the patients do not feel the burden. However, the public insurance services are controlled by the government.
Similarly, private insurance uses restricted supply strategy while public insurance uses consumer-purchaser information strategy. When private insurance healthcare sectors notices there has been an alarming increase in the healthcare costs, it intervenes through increasing the cost of their services and their medicines (Stadhouders et al., 2019). This makes it hard for the patients to afford which leads to reduction of their profits hence calling for additional strategies to help maintain the system. Hence, they are forced to restrict their supply of their medicine to accommodate the current changes until; the problem is resolved. However, the public healthcare insurance sector has the mandate to ensure that citizens meet their healthcare services despite the challenges. Therefore, the government is forced to shift its budget to adjust to the current health care needs which is done through consumer-purchaser information. The government creates awareness countrywide to inform the consumers that the costs of healthcare have increased at a higher rate and negotiate with the suppliers. This is done to ensure there is goodwill; and effective relationship between the purchasers and the consumers. The citizens are urged to participate in maintaining good health and adopting different forms of treatment until the problem is solved.
National expenditure refers to the methods by which the government spends its revenue to promote the services offered by different organizations. Organizations are aimed at making profit by utilization of the available resources to enhance the lives of citizens. Therefore, the government is responsible for promoting organizations to ensure their success (Jones & Bartlet, 2010). In addition, organizations rely on the government to get subsidies and promote their ideas through offering financial assistance that might remedy the grievances and problems consumers encounter. In health care system, the national expenditure is set aside to help them plan for future emergencies and avail their services to the patients. The healthcare system is designed to operate on the expense of their costs and promote the patients to receive high quality services. The reputation of the healthcare system is designed to help promote their services and encourage use of available resources in the interests of the people within the locality. Therefore, national expenditure affects how organizations functions as they determine the subsidies they offer. The national expenditure functions to promote organizations such that they provide financial assistance to the organizations and promote their services through improvising the available resources and training the employees to improve the quality of their services.