Sustainable Risk Management Healthcar †MyAssignmenthelp.com

Question: Discuss about the Sustainable Risk Management Healthcar. Answer: Introduction: The major points of dissimilarities between revenue and expenditure in the health system are described briefly as follows: Points of dissimilarities Revenue Expenditure Concept It denotes the sum of money received for services within a specific timeframe. Expenditure could be described as the monetary outflow from the health system to another party used for paying a particular service (Cole, Chaudhary Bang, 2014). Effect on equity Revenue takes into account interest and assets, which increases the equity of the healthcare system. Expense is realised at the time of incurring any liability or utilisation of asset, which minimises the equity of the particular health system. Type In health system, revenue could be realised in the form of service revenue or non-operating revenue such as rent revenue and interest revenue. Expenses could be both direct and indirect. The direct expenses include material and labour, while indirect expenses comprise of rent and insurance. Activity-based funding (ABF) is a technique to fund hospitals, in which they are paid for the mix and number of patients treated. If more patients are treated, the hospitals receive additional funding (Donovan et al., 2014). ABF leads to related group codes, which provide meaningful techniques clinically to relate the kinds of patients that a hospital treats to the resources needed. IHPA carries out updates and reviews of current allocations and it is accountable to initiate new classifications for the service categories without a current classification. In other words, it ascertains the amount of cost and the price to be paid to the hospitals. For developing the budget, activity needed is ascertained and after this process, it is multiplied with the price to arrive at the budget. Two agencies are accountable to approve the budget, which include Common Wealth and State Government. These two agencies merge together to develop funding pools, which are then passed over to the state health agency. The state heath agency then passes the same to the district in-charge from which the hospitals receive their funding. Casemix provides assistance to the healthcare sector with a consistent procedure of categorising the types of patients; treatment needed and related costs (Finkler et al., 2016).These classifications are beneficial, as they depict to describe the relationship between healthcare costs and activity. The Australian DRG classification system is utilised for categorising acute admitted patients and other classifications are utilised for classifying other patient care. The patients admitted to the hospitals have diseases and the processes that are undertaken at the time of admission have been coded utilising ICD-10-AM/ACHI/ACS (Ihpa.gov.au, 2018).Specialised clinical staffs undertake such coding and the coded information coupled with the demographic information of the patients like gender, age and duration of their stay are utilised for allocating acute patient admissions to Australian DRG class. This classification is performed either on the part of the hospital or clinical coder or pertinent health authority of the state. References: Cole, S. A., Chaudhary, R., Bang, D. A. (2014). Sustainable risk management for an evolving healthcare arena.Healthcare Financial Management,68(6), 110-115. Donovan, C. J., Hopkins, M., Kimmel, B. M., Koberna, S., Montie, C. A. (2014). How Cleveland Clinic used TDABC to improve value.Healthcare Financial Management,68(6), 84-89. Finkler, S. A., Smith, D. L., Calabrese, T. D., Purtell, R. M. (2016).Financial management for public, health, and not-for-profit organizations. CQ Press. Ihpa.gov.au. (2018). Retrieved 13 April 2018, from https://www.ihpa.gov.au/