Simplified Insurance Solutions, LLC Blog
Even though hospitals are the places where empathy and compassion are most valued since it concerns citizen’s lives, it still does not rule out the fact that it is a business. It needs capital, budget, and investment before it can deliver the best patient care services. Fortunately, some of these expenses can be covered by insurance companies.
Most of the time, the revenue for the hospital is from billed patient care services. In our world today, we have insurance to cover for most of our hospital expenses. Which means, these services are billed to private insurance companies where people have loaned their money to. Contracts that schedule reimbursement have been maintained by hospitals for all types of medical assistance to ensure private health plans.
According to the American Hospital Association, 59.5% of community hospital expenditures is made up of benefits and wages in the year 2008. The additional 10.6% is due to labor costs. As obvious as it may seem, the principal capital in business delivering patient – such as clinics, rehabilitation centers, and hospitals – is human capital. Medical professionals didn’t study those extra years in prestigious universities for nothing.
Tests and Technology
Reports from The Boston Globe have mentioned a $12 billion revenue on medical imaging in hospitals in Massachusetts between the years 2006 and 2008. Technological advancement has been helping medical professionals through more accessible diagnostics and reducing the risks of potential problems. However, these devices issue lofty expenses in various forms of tests and assisted procedures, especially in surgery. Stent inserts, MRI scans, and arthroscopic equipment are some of the advanced technologies that have helped save millions of lives.
Supplies and Capital Expenses
While labor costs make up 59.5% of community hospital expenses, supplies take up 15% if the patient required the use of these supplies and equipment. The budget amount can sometimes vary drastically by hospital measures. If a hospital is undergoing renovation or construction of an additional building, then the possibility of the expenditures increasing is highly likely, compared to those hospitals only adding new tools and equipment. Hospitals who don’t profit often depend on donations to fund capital expenses for expansions and renovations.
Hospital expenses can be quite expensive, considering that these professionals have studied long hours, and the equipment used are highly advanced to guarantee the best patient care service. Applying for a Medicare Advantage Plan is hugely convenient, mainly because they include Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service Plans, Special Needs Plans, and Medicare Medical Savings Account Plans. Apply for Medicare Advantage now!
At Simplified Insurance Solutions, LLC, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 340-7633 or Click Here to request a free quote.