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The Challenges of Healthcare Management

Did you know that in 2020, healthcare costs rose 9.7%? That equals about $12,530 per person. Healthcare expenses are one of the many challenges healthcare management faces today.

Healthcare is one of the toughest fields to operate in. The costs of healthcare continue to grow while patient satisfaction decreases. And there are a lot more issues that arise in the healthcare sector.

Keeping up with an effective management practice can be tough with all these demands. Below, we’ve listed the most common challenges that healthcare management faces to help you know how to overcome them.

Healthcare Policy

Healthcare policy is a set of guidelines that outline the industry’s goals. They show how the healthcare system is structured in order to achieve them. It also sets the tone for the people’s health within the system.

If it prioritizes quality healthcare, it’s easier for providers to deliver high-quality care. If the policy centers on costs, it makes it harder for providers to deliver good service. Depending on the policy a healthcare center may have, it’s hard to offer a good service while sticking to protocol.


Healthcare providers are now using more technological approaches to improve patient care, such as using speech therapy billing software. These approaches have also improved efficiency. Some include:

  • Medical devices
  • Wearables
  • Patient engagement tools
  • Artificial intelligence

This can impact the efficiency of your business as a whole and how you can leverage technology to help you improve your operations. Many specific trends are affecting healthcare organizations.

One major trend is the rise of health informatics, which is the application of information science to healthcare. This has provoked a rise in the use of blockchain technology.

Protecting Against Cyber Attacks

Healthcare organizations face many challenges thanks to cyber threats. They are more at risk of a cyber attack because of the large amount of sensitive data housed within the organization’s network.

So, health IT leaders should ensure that their systems are as secure as possible. For example:

  • Keeping systems up-to-date
  • Employing effective monitoring tools
  • Educating staff on data protection

When educating your staff on data protection, it’s important you clarify all the possible threats they can find. Show them what preventative measures they should take. And show them backup and restoration techniques.

Constant Rise of Healthcare Costs

The constant rise in healthcare costs has made managing the industry more challenging. And at the end of the day, all healthcare organizations share one common goal: to provide top-quality healthcare at an affordable price.

Many providers want to discontinue health insurance coverage for their employees to keep costs down. It’s caused many providers to lean toward value-based models that reward quality care with a financial incentive.

Providers can keep costs down by shifting toward value-based models while still providing quality care. This has led to providers offering their employees a wide range of benefits plans, including vision, dental, and life insurance.

Hiring Qualified Personnel

Finding qualified professionals for a healthcare clinic management staff is also a popular challenge. As the healthcare industry evolves, specific job functions are becoming obsolete.

Now, there’s an increase in the demand for specific skills, while others are becoming outdated. It becomes challenging for businesses to find people with these skills.

So, to hire the right person for the job, you first need to develop an accurate job description to attract a suitable candidate. Once you choose your candidates, create a strategic selection process. For example, ask insightful questions in the interview.

Have the candidates go through an interview process that consists of several phases. You can even include group interviews. Group interviews allow you to evaluate candidates while having them perform activities.

Use of Telehealth

Telehealth is now a common alternative to in-person visits for healthcare providers. Providers have used telehealth for decades to help manage chronic conditions.

However, it’s only recently been embraced by a larger number of primary care physicians. By using remote monitoring tools, patients can track their health data. It can help them stay connected to their medical condition and stay up-to-date with their health.

It reduces the need for in-person visits by healthcare providers. As this trend continues to grow, we’re likely to see a rise in the use of artificial intelligence in healthcare software.

In fact, AI is already a tool that healthcare practices use to help patients manage their health data. These tools are starting to become more sophisticated and are likely to help reduce the need for in-person visits.

Leadership Gap

Leadership gaps are a common issue in healthcare management. Healthcare leaders must address many challenges.

For example, the complexities of the healthcare industry and the lack of talented people to lead them. They also have to deal with high employee expectations and a demanding environment.

Rising Costs in Medical Equipment

Medical equipment is essential for providing high-quality care, especially when patients have limited mobility. However, medical equipment can be expensive and difficult to maintain.

Healthcare facilities are trying to reduce medical equipment costs. They are looking for ways to improve the quality of care by reducing equipment downtime. More than half of hospitals experience equipment downtime at least once a week. This causes lost revenue and can provoke serious consequences for patients.

Also read: What Requirements Are There For Working In Healthcare

Avoid These Healthcare Management Challenges!

Juggling these challenges in healthcare management can make a business suffer. Include a thoughtful analysis of the challenges you’ll face and strategies for adapting to these issues.

Want to keep reading tips on how to improve business management? On our website, you’ll find tons of other similar posts with helpful tips you can benefit from, so keep exploring!

The founder and CEO at ThriveVerge, The Verge, and Thrive Revolution. He launched Thriveverge in 2016, a leading behavior change technology, business, media, and entertainment company with the mission of ending the collective delusion that burning out is the price we have to pay for success.


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