Impact of the Patient Act on Health Organizations

The Act which was signed into law in 2010 aims at reducing the cost and
improving the quality of health services. It increases the range of
insurance cover providing most citizens of America with health insurance
cover. The law will increase the coverage of the insurance policies
offered by insurance companies on health. With the law in place it will
shift the health system by improving on quality rather than quantity,
through offering incentives. The incentives will streamline the mode of
delivering health care services (CCH Incorporated & Wolters Kluwe r
firms, 2010).
Impact of the law on health care organizations
Impact on its operations
The laws will have a great impact on health institution since it
directly affects its activities. Increasing the range of insurance cover
means that the number of patients being attended to in the institutions
will increase dramatically in every organizations.
The impact will be felt due to the fact that health services will have
to be improved forcing institutions to upgrade their equipments. For
better health services the equipments will have to be of high quality,
this will mean that the institutions will be forced spend a little more
cash on the equipments. This will bring a strain to their financial
status making them adjust their financial books.
Improving the quality of health care services requires that the hospital
staff have to undergo training. The training will ensure that the
services offered are of high quality. In the health care institutions
every staff member has the responsibility of providing services. Further
the training the individuals got and in the correct sector of the
hospital (Fallon et al, 2013).
Health care organizations have duty of following the rules prescribed by
the enacted law. This gives them a hard time of ensuring that effective
and efficient measures are put in place to ensure that the laws are
followed to the latter. This puts them on an edge with the authorities
since a slight diversion from the law will get them into trouble which
might ruin their reputation.
Impact on their financial performance
Most health care institutions have a tremendous financial performance.
This is due to the number of patients that seek the health services.
With the introduction of the insurance coverage the institutions will
get fewer benefits financially due the fact that insurance coverage
prevents most institutions from overpricing their patients.
Patients operating under insurance cover have a fair share of their
bills covered by the insurance companies. This reduces their financial
burden after receiving treatment. Majority of the common citizens are
unable to afford quality health care services due to the financial
constraints. As a result, most people lack access to health services
which reduces the number of patients. With the introduction of the
enacted law most patients will have access to medical services which
means most sick people will visit the hospitals. An increase in the
number of patients will be beneficial to the organizations since it will
improve their financial performance (Schaie et al, 2002).
Financial performance of health care institutions will improve
dramatically. Important people in the society with all the luxury will
take on insurance cover making large monthly premiums. Government
institutions also take on insurance cover for their employees private
institutions are also required to do the same hence increasing the
health care institutions profits.
The Patient Protection Act enacted in 2010 has had tremendous effects on
the health organizations. Its benefits have benefited most citizens and
it has improved the quality of health care of America.
CCH Incorporated., & Wolters Kluwer (Firm). (2010). Law, explanation and
analysis of the Patient Protection and Affordable Care Act: Including
Reconciliation Act impact. Chicago, IL: Wolters Kluwer Law & Business.
Schaie, K. W., Leventhal, H., & Willis, S. L. (2002). Effective health
behavior in older adults. New York, NY: Springer Pub. Co.
Fallon, L. F., Begun, J. W., & Riley, W. J. (2013). Managing health
organizations for quality and performance. Burlington, Mass: Jones &
Bartlett Learning.