Addressing Healthcare Challenges - Free Essay Sample

Published: 2023-10-28
Addressing Healthcare Challenges - Free Essay Sample
Type of paper:  Essay
Categories:  Healthcare Budgeting Community Healthcare policy
Pages: 5
Wordcount: 1111 words
10 min read


The Tehachapi health district faces a major challenge in terms of Healthcare, and this is a major prompt which is developing the Adventist Health Center. This implies that there is a huge demand for health services in the community. Some of the main challenges that face the area are lack of enough personnel to serve the various needs of the people there. They have limited access to healthcare professionals who can provide them with all the services that they need to enable them to cope with diseases. It is a major challenge for the community to maintain appropriate Health Care levels when they mostly have to go outside to the district to access proper Healthcare. The hospital is serving an existing demand within the community. Therefore, it makes a lot of business sense to establish the hospital there since there is already a demand for health care services. The existence of a new hospital in place will provide the needed services. However, there is one limitation which arises from the high poverty levels in the community, which implies that the hospital cannot generate a self-sustaining income to cover all expenses without diversifying the income sources. This report captures all the possible income streams available for the hospital in the said community.

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Insurance Billing

The hospital has an array of possible income streams it could approach towards maintaining a self-sustaining future. The Core Business of the hospital will be to provide health care services, and this is a major income stream for it. However, as initially stated, the community is currently facing a challenge in terms of high poverty levels which implies that cash payments from the patients may not be a very viable income stream. However, the patients have access to insurance billing, which is a good Avenue for them to seek payments for their hospital bills. It is therefore appropriate that the hospital utilizes insurance billing since it will make it easier for individuals in the community to afford hospital bills. Particularly, the greatest Health challenge for this community is with regards to chronic illnesses that require much more attention by a healthcare Institution. Such services cost a lot more, and it will be hard for the residents to afford a very high rate, and insurance billing will come in as a great help for them in getting the services. The hospital will consider this as the primary source of revenue since it is a core service that it offers.

Alternative Income Streams

The hospital will as well generate income through Partnerships with various institutions and especially non-governmental organizations. NGOs often have programs that are aimed at helping individuals coming from very poor backgrounds that cannot afford basic services. The hospital will develop Partnerships with such institutions to provide Health Care to individuals who cannot afford it at a subsidized price through cooperation with the hospital for the provision of healthcare staff and facilities.

Another possible income stream for the hospital will be in research and training. The hospital will have the opportunity to interact with a community that faces serious healthcare issues ranging from chronic illnesses, psychological conditions and substance abuse. There is a great need for professionals from the community to deal with the said challenges. The community requires such professionals to also lower the prices for Healthcare. It is important that the community has local medical professionals, and this is a great opportunity for the hospital. The hospital will develop a training institute to offer training for individuals interested in related courses and charge a price that is suitable for the community. In doing this, the institution will have the capacity to achieve it is desired for generating revenue and covering costs.


Adventist Health Centre Plans to serve a huge Community Within the said location, and this simply implies that it will have to be running at a relatively high cost to attain efficiency. Some of the costs associated with the hospital are such as loans dedicated to developing the hospital. The hospital will require an immense amount of finances, and these shall be committed to physical structures and equipment. The hospital will as well incur costs in terms of rent to lease more facilities that will be used in rendering the desired services. The hospital will need numerous personnel to meet the current demand for health care services in the community. It will require a huge task force that will be working on the site and therefore, a huge amount of money is needed to settle all the salaries the hospital is going to incur. To set up the hospital, some various approvals and licenses need to be in place. All of these require financial input and, thus, a new cost that the institution will incur before setting up. Finally, the hospital will incur recurrent costs such as promotion, distribution, maintenance and taxes.


In conclusion, the entire process of setting up the hospital will be an intense exercise, first of all, considering the initial costs the whole process will incur. The hospital must have various approvals from relevant authorities as well as licenses to begging operations. Other costs will include promotion to make the surrounding community aware of the commodity, and therefore, it will be in a position to achieve its desired goals. The hospital will also incur other recurrent costs which are taxes and daily maintenance of equipment and the hospital structures to provide a more convenient service. To foot the said costs, the hospital will employ various revenue generation methods. The methods will include insurance billing and promoting it to ensure that patients can access medical health at a much more reasonable price. The hospital will also partner with Non-Governmental Organizations to roll out subsidized healthcare programs provided by the hospital. Finally, the hospital will also develop training programs for healthcare professionals considering the current demand for Healthcare in the said hospital. This will provide a major opportunity for sustainability for the hospital, in general, moving forward.


Naus, F. P. M., Faint, C. A., & Dwyer, R. J. (2018). Are Hospital Efficiency and Quality of Care Affordable Without External Revenue? International Journal of Applied Management and Technology, 16(1), 14.

Xu, J., Jian, W., Zhu, K., Kwon, S., & Fang, H. (2019). Reforming public hospital financing in China: progress and challenges. BMJ, 365, l4015.

Szigeti, S., Evetovits, T., Kutzin, J., & Gaál, P. (2019). Tax-funded social health insurance: an analysis of revenue sources, Hungary. Bulletin of the World Health Organization, 97(5), 335.

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