Examining the evolution of healthcare reimbursement: A hospital approach toward profitability

It is a known fact that hospitals rely on the money earned from reimbursement to operate effectively and efficiently. As the Affordable Care Act (ACA) final stages are put into law, it is imperative that hospitals understand the changes that will affect the amount of income they will be bringing in. These changes include additional costs in the form of meeting additional regulations and being accountable to a higher quality of care. This paper is a comparative research study examining past reimbursement methodologies and comparing them to the methodologies promoted in the ACA. The research was conducted in order to determine which methodologies would allow hospitals to become the most profitable. Ten different key performance components were selected to examine the most profitable solution among each methodology. The literature review analysis provided key descriptions of how the combination of traditional and innovative methodologies could allow hospitals to become the most profitable. The comparative research analysis applies fundamental aspects to help hospital leadership make appropriate decisions to lead the organization toward growth. Keywords: Health Care Administration, accounting, solvency, profitability, Ms. Mary Wilhelm-Chaplin.