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Health Care Finance- Problem-Solving Analysis Report

Health Care Finance- Problem-Solving Analysis Report

In the healthcare sector, a critical nursing shortage has serious financial ramifications. This analysis addresses the difficulties associated with supply and demand in the healthcare industry while concentrating on the financial effects of nursing shortages. It also examines how regulatory concerns impact the healthcare sector’s workforce, resources, and technological advancements. One suggested tactic to address the nursing shortages and lessen its financial effects is to invest in nursing education and expand the number of nursing programs. Positive results, including an enlarged nursing staff, improved patient care, and long-term sustainability in healthcare services, are anticipated from implementing this plan.

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The Financial Impact of Nursing Shortages on the Health Care Industry

The lack of nurses in the healthcare sector has serious cost ramifications. The shortages mainly raise the cost of healthcare for hospitals and other institutions. Hospitals frequently need to engage temporary or contract nurses from staffing agencies to alleviate the shortages, which is more expensive than hiring full-time nurses (Huckestein et al., 2022). Hospital costs increase due to the premium prices these agencies demand for their services. In addition, hospitals may need more nursing personnel to handle all patients, which could reduce the number of patients they can accommodate. Longer wait times, postponed treatments, and significant hospital income loss can all arise from this.

Furthermore, the shortages contribute to high turnover rates among nurses, who may experience burnout from working in understaffed and high-pressure environments. High turnover requires hospitals to invest more resources in recruiting, training, and onboarding new nurses, which adds to their financial burden. Overall, the nursing shortages have a significant financial impact on the healthcare industry, increasing costs and potentially affecting hospital patient care and revenue generation.

Supply and Demand Challenges Related to Personnel, Supplies, and Technology

The healthcare sector needs help with supply and demand in several areas, including staff, materials, and technology. There is a shortage of healthcare workers, including nurses and doctors, on the labor front, which raises demand for their services. A growing older population and the retirement of healthcare professionals are two variables that frequently make this deficit worse. Disruptions in the global supply chain can affect the price and availability of necessary medicines, medical supplies, and other goods, particularly during emergencies or periods of high demand (Pathy & Rahimian, 2023). Additionally, the rapid advancement of technology in healthcare creates a demand for skilled professionals who can effectively implement and utilize these technologies while simultaneously posing challenges regarding the cost and accessibility of these technological advancements. Balancing the supply and demand of personnel, supplies, and technology remains a complex challenge for the healthcare industry.

Regulatory Issues Affecting, or Will Affect, the Personnel, Supplies, and Technology in the Health Care Industry

Regulatory difficulties regarding staff, supply, and technology significantly impact the healthcare sector. The availability and mobility of healthcare professionals can be impacted by rules governing licensing, scope of practice, and certification requirements, which may result in a need for more qualified workers or a limited demand for specific healthcare roles. Regulations concerning manufacturing, quality assurance, and import/export can impact the availability, cost, and safety of medical supplies, medications, and equipment. Regulations governing data privacy, security, interoperability, and reimbursement procedures are essential in determining how healthcare technology is adopted and used. These regulations can either help or hinder the incorporation of cutting-edge technologies into healthcare settings. As the healthcare landscape evolves, regulatory issues will continue to shape and influence the healthcare industry in these areas, necessitating a balance between patient safety, quality of care, and innovation.

Strategy to Improve the Nursing Shortages

Investing in nursing education and expanding the capacity of nursing programs is one way to address the nursing shortages and lessen its budgetary impact. More people can receive training and enter the nursing industry by addressing the shortages of nursing school professors and expanding the number of places available for nursing students (Rose et al., 2023). Accordingly, this can be accomplished by increasing the number of nursing school faculty members, providing attractive salaries and benefits to draw in skilled educators, and collaborating with healthcare companies to fund and support nursing education. Growing the pool of nursing graduates will aid in addressing the shortfall, lessen reliance on pricey staffing firms, and offer a long-term solution to the financial issues brought on by the lack of nurses in the healthcare sector.

The Anticipated Outcome of These Recommendations

Enhancing nursing program capacity and investing in nursing education is anticipated to have various beneficial effects. First, more people would have the chance to pursue a nursing career if the shortages of nursing school professors were addressed and the number of open seats for nursing students was increased. Since more trained nurses would be entering the workforce, the nursing shortages would be lessened. As a result, access to sufficient nursing personnel would be improved for healthcare institutions, reducing the demand for pricey temporary or contract nurses from staffing agencies.

Expanding nurse education capacity would eventually help create a more long-lasting healthcare system. Hospitals would benefit from better patient care outcomes, more patient satisfaction, and lower nurse-to-patient ratios if more highly qualified nurses worked there (Matlhogonolo Phale & Bertha Randa, 2023). Also, since fewer medical complications and errors would mean fewer hospital readmissions and better overall health outcomes, this might result in cheaper healthcare costs. By encouraging more people to seek nursing jobs, growing the nursing workforce, and guaranteeing a consistent supply of competent nurses to meet future healthcare demands, investment in nursing education can also start a positive cycle. Putting these suggestions into practice would assist in lessening the cost effects of the nursing shortages while enhancing the effectiveness and quality of healthcare services.


In conclusion, there are several adverse financial effects of the nursing shortages in the healthcare sector, including more excellent prices, decreased patient capacity, and a rise in turnover rates. The problems with supply and demand regarding personnel, supplies, and technology make things worse. Regulatory concerns also significantly impact the use of technology, supplies, and staff in the healthcare sector. Nonetheless, investing in nursing education and increasing program capacity stands out as a potential solution to solve the nursing shortages and lessen its cost impact. Healthcare companies may reduce their reliance on pricey staffing agencies, enhance patient care results, and achieve long-term sustainability by increasing the number of skilled nurses joining the profession.


Huckestein, A., Jin, B., Lebel, D., & Hecker, J. (2022, May 16). The COVID-19 Pandemic and its Effect on the Healthcare System: UPMC’s Response to a Shortage of Healthcare Workers.

Matlhogonolo Phale, J., & Bertha Randa, M. (2023). The effects of high nurses’ turnover on patient care: Perspectives of unit managers in Critical Care Units. International Journal of Africa Nursing Sciences, 100580.

Pathy, S. R., & Rahimian, H. (2023). Resilient inventory management of pharmaceutical supply chains under demand disruption. Computers & Industrial Engineering, 180, 109243.

Rose, H., Skaczkowski, G., & Gunn, K. M. (2023). Addressing the challenges of early career rural nursing to improve job satisfaction and retention: Strategies new nurses think would help. Journal of Advanced Nursing.


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Problem-Solving Analysis Report
Exam Content

As a healthcare manager, you must be able to analyze financial and economic issues in the healthcare industry. In this summative assessment, you will demonstrate problem-solving skills.

Health Care Finance- Problem-Solving Analysis Report

Health Care Finance- Problem-Solving Analysis Report

Imagine you are a healthcare manager at a hospital, and you are preparing a report for your CFO in which you analyze current issues in healthcare (e.g., nursing shortages, supply-chain disruption, and telehealth use) and address the financial impact of these issues on your hospital.

Select 1 of the following current financial issues that the health care industry faces today to use for this summative assessment: nursing shortages, supply-chain disruption, or telehealth use.

Access the Week 2 University Library and read 1 of the following articles from the Summative Assessment: Problem-Solving Analysis Report section that corresponds to the current financial issue you selected:

The nursing shortage: “As COVID-19 Worsens Nursing Shortage, Madison Hospitals, Schools Step Up”
Supply-chain disruption: “Inflation Rattles Hospital Supply Chain and Labor Pool with no End in Sight”
Telehealth use: “Telehealth Grows, but Medicare Has Woes”

Assessment Deliverable
Write a 700- to 1,050-word report about the financial issue you selected in which you:

Analyze the financial impact of your selected financial issue on the healthcare industry.
Explain what the supply and demand challenges are for healthcare services in terms of personnel, supplies, or technology.
Describe how regulatory issues are affecting, or will affect, the health care industry in the areas of personnel, supplies, and technology.
Describe at least 1 strategy to improve the selected financial issue.
Discuss what you believe would be the outcome of these recommendations, if implemented.

Cite sources to support your report.

Format your report according to APA guidelines.

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