Healthcare administration

March. 17,2022
Healthcare administration

The core content of Healthcare Administration is: medical insurance institutions can effectively control the occurrence or development of diseases, significantly reduce the risk probability and actual medical expenses, and reduce the loss of medical insurance compensation through systematic health management of their medical insurance customers (including patients with diseases or high-risk groups). On the other hand, it refers to a process of comprehensive management of health risk factors for individuals or populations.


Its purpose is to mobilize individual and collective initiative and to use limited resources effectively to achieve maximum health results. It involves public medical system management, medical service system management and hospital network management.


Health management refers to both an industry and a discipline. A large number of preventive medicine studies at home and abroad show that spending 1 yuan on prevention can save 8.59 yuan in drug costs, and can also save about 100 yuan in rescue costs, loss of missing work, accompanying costs, etc.


Health management is a preventive medicine that goes back to its origin. It provides health education for individuals and groups, improves the awareness and level of self-management of health, evaluates and monitors health risk factors related to their lifestyle, and provides personalized interventions, which greatly reduces the risk of disease and improves the quality of life of individuals.


Early health managers were called patient managers. At the time, more than half of the Members of the American Hospital Association were nursing graduates. Other hospital administrators include doctors, lay and clergy. Now the profession is no longer limited to hospitals, but there are many professional health management companies. Nowadays, "health manager" has become a new profession.


In the West, health management plans are an important part of health care systems and have been proven to be effective in reducing an individual's risk of disease while reducing medical costs. It is reported that the United States spends about $218 billion annually on health management, which is equivalent to about 1.43% of the total U.S. economy.


Spending on health management has risen from 0.9% of the U.S. economy in 2009 to 1.43% in 2012. Health management experience in the United States has shown that through effective proactive prevention and intervention, patients are 50 percent more likely to take prescribed medication regularly, and their doctors are 60 percent more likely to prescribe more effective drugs and treatments, resulting in a 50 percent reduction in patients' overall risk.


With the improvement of people's living standard and the increasing number of elderly population, health management has gradually become one of the focus of people's attention. China's health management industry is developing rapidly. At present, there are more than 3000 professional health management companies in China, several of which have obtained tens of millions of dollars of financing, and it is expected that more than 1 billion dollars of domestic and foreign funds will be invested in the domestic health management industry.


New healthcare terminals and information products that are portable, mobile and connected, with their detection function, accuracy and associated low cost, have been able to reach the level of household and widespread use. Personalized and modern health management, fully rely on modern medicine and modern informatics, give full play to the advantages of modern communication technology means, according to the whole set of standardized operation process, can accurately determine the management target population, provide an interactive platform for doctor-patient exchanges, and provide targeted low-cost health improvement programs and approaches.


Differences between Healthcare Management and Healthcare Administration


It's easy to confuse the two because literally, both sets of words can be translated as health management. But they actually represent two different aspects of the medical profession. The distinction between the two words is somewhat similar to that between sales and marketing. Sales and marketing both generate revenue for a company, but they do so in two different ways. The sales department is the face of a company and will communicate with customers face to face, while the Marketing Department will expand the customer base through advertising and other forms.


The major difference between Healthcare Administration and Healthcare Management is that the latter focuses on medical institutions while the former focuses on personnel management.


An effective Healthcare administrator will be familiar with his organization to better understand the needs of patients and to better manage their health.