Importance of Health Care professionals to know Business Math

IMPORTANCE OF HEALTH CARE PROFESSIONALS TO KNOW BUSINESS MATH 5

Importanceof Health Care professionals to know Business Math

Outline

  1. Business math has a fundamental role

  2. Billing information

  3. Prevention of disputes

  4. Hospital expenses

  5. Thesis: Business math is essential for healthcare professionals, particularly when dealing with the costs include the acquisition of medicine, equipment, payment of utilities, the labor costs among other expenses.

  1. Aims of business math in healthcare

  1. Ensure efficiency

  1. Costs do not outweigh benefits

  2. Price determination

  1. Net profit importance

  1. Revenues projections

  1. Hospitals focus on society’s wellbeing

  2. Supporting evenness of operations

  1. Helps in workforce determination

  1. Reduction and increasing of employees

  2. Day to day activities of hospitals

Importanceof Health Care professionals to know Business Math

Overthe years, business math has played a very fundamental role in thehealthcare industry. Billing information is a perfect example ofwhere business math applies. Coming up with the bill information iscritical to inform both the patient and the insurance company of theamount payable to the hospital (Feeman, 2010). Health professionalshave to make calculations and give a correct figure since anincorrect figure is likely to cause a dispute between the partiesinvolved. Health professionals will need to calculate the costs thatthe expenses that the hospital will incur. Business math is essentialfor healthcare professionals, particularly when dealing with thecosts include the acquisition of medicine, equipment, payment ofutilities, the labor costs among other expenses.

Theaim of the calculations is to ensure that the costs do not outweighthe benefits meaning the hospital will continue running efficiently.According to Feeman (2010), business math also facilitates thedetermination of the price to sell drugs and obtaining the markup,which is the difference between the cost of the merchandise and theselling price. It is through business math that doctors can analyzethe financial aspects in the accounting records such as stability ofthe hospitals.

Inas much as hospitals focus on improving the welfare of the society,as opposed to making profits, it is imperative to get the net profitin an attempt to identify if the operations broke even. Furthermore,health centers rely on the calculation of the math to make futureprojections of revenues (Feeman, 2010). The details are essentialwhen it comes to making decisions about reducing or increasing theworkforce depending on the level of sustainability. Consequently,numbers are crucial in the day to day running of medical operations.Having such math skills will go a long way in cementing the existenceof the health institution in the foreseeable future.

Reference

Feeman,T. G. (2010). Themathematics of medical imaging: A beginner`s guide.New York: Springer Publishers.