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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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Issues and challenges of financial management in the healthcare organization.

During our interview session with Mr. Haziq, he have explained that there are few issues faced by their finance department. One of the issue is, patient demand in newer and latest technology. Everyone have already know that the latest technology or machines require a big cost. Furthermore, the medical technology is being developed at a very rapid pace, because of this, some hospital or even KPJ Sentosa itself have problem in dealing with the patients demand. According to Mr. Haziq, theres one time, KPJ Sentosa just bought a new machine for their rehabilitation department, after about 1 year, the latest machine came out. Even though the department doesn't even fully utilise the machine they bought earlier yet, but the patients who have higher knowledge about the healthcare issues keep on pressuring them to buy the new machine.

The second issue is fraud from the staffs. This issue happened to their department a few times. The irresponsible staffs usually commit in fraud issue during the closing account time. The meaning of fraud from business dictionary means act or course of deception, an intentional concealment, omission, or perversion of truth, to gain unlawful or unfair advantage, usually for their own self. Other than fraud, there is also error of calculating from the staff during the closing time. The error is one of the common mistakes happen because it only require human energy and mind to make the perfect and zero mistake calculation.

Besides issues, there are few challenges faced by the finance department of KPJ Sentosa. The first challenge comes from the patient, which some patients refuse to pay their hospital bills or ask for discount. According to Mr Haziq, this case happened quite a few times, especially from middle class family. Mr Haziq have explained that when it comes to that situation, KPJ Sentosa's finance department will take action and they will not comprise, they need to carefully explain to the patients without making the patients feel offended. Mr Haziq said that all the patients need to settle their hospital's bill before they discharge or else they will have to stay in the hospital and the bills will keep going.

The second challenge is the challenge from KPJ Berhad itself. KPJ Berhad has announced and set that every KPJs have to increase the number of patients in every KPJs hospital in year 2019. It become one of the burden to the finance department as they need to do something to attract the public to come and seek treatment from their hospital, especially for the marketing cost. Mr Haziq has mentioned that to do a proper marketing, they need a big cost. So the finance department have to allocate the money to every department precisely and fairly in order to make sure that every department can also help in increasing the number of patients that KPJ Berhad has set.

There are an increasing numbers of new hospital in Malaysia. Competitors in healthcare industry nowadays have increased and it is also one of KPJ Sentosa's challenge. Mr Haziq have explained that because of the competitors keep on increasing, the finance department have to work harder to compete with the other hospitals especially in the financing part. When competitors increase, the competition to get the best suppliers also become difficult, so the finance department need to find other alternatives to fight for the best suppliers for their hospital's equipments and tools or else they will only get the low quality suppliers and it will make all the process of purchasing new equipments and tools become harder.

The recommendation

KPJ sentosa should put the advertisement about the method of payment or bills at every department of the hospital. They have to inform the patients or the patient's family member earlier that they will no accept any request for discount for bills and every patients have to settle the bills before they discharge. By putting the advertisement, the patient or the family members will have early information that the hospital do not accept any discount request, so it can reduce the problem of patient do not want to pay the bills and asking for discount.

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