What are the major challenges in the logistics sector?
Posted On June 18, 2021
From the start of this year, the US has been grappling with a wave of outbreaks.
A third of all US healthcare workers have been infected, and the number of deaths is approaching a million.
The government has deployed thousands of federal troops to fight the outbreak, and it is planning to spend $6 billion over the next year to fight it.
The US Department of Health and Human Services has also set aside $100 million for the US to fight its own pandemic.
In the US, the number-one problem facing healthcare providers is not the pandemic itself, but how to fight off the virus.
The healthcare industry is grappling with the most important question: How can it effectively deploy to fight this new threat?
What are the key problems in the healthcare sector?
The first and foremost is cost.
The industry has faced a few key hurdles in terms of cost, says Matt Stegman, an economist at the Boston Consulting Group who has researched the health sector.
“You have to be really focused on what you’re trying to get done and be able to spend as much time on it as possible,” he says.
The healthcare sector is a very fragmented market.
The private sector has about 20% of the market, and public sector entities are the other 80%.
“If you are going to have to spend money to get to a point where you can get the kind of care you need, you can’t be relying on a single entity,” Stegmen says.
To start to address that, there are three major ways to spend healthcare dollars: payouts, buy-outs and incentives.
Payouts are common, and they can be relatively inexpensive.
The American Hospital Association estimates that private healthcare insurers spend $30 to $50 billion a year on payments.
For the most part, healthcare providers pay out their own money, but there are some exceptions.
The Kaiser Family Foundation estimates that the government pays $10 billion in health care payments to states each year.
In exchange for these payments, healthcare operators get a share of the profits of the healthcare provider, which can be significant.
But it also requires them to keep costs low, and that requires an infrastructure that is complicated and costly to maintain.
The US spends roughly $50 to $60 billion annually on health care, according to the Centers for Medicare and Medicaid Services.
The government has about $6.5 trillion in its Healthcare Cost and Utilization Project (HCUP), which includes funding for various government programs.
The federal government is responsible for the cost of health care in the US.
“It is a complex issue,” says Mark Goldfarb, a professor at the University of Texas School of Public Health and director of the HCUP program.
The HCUP is one of the most complex and expensive healthcare systems in the world, he adds.
Goldfarb also notes that there are multiple ways to fight pandemics, from building a “coherent” response to implementing effective infection control and surveillance to implementing an effective vaccine.
The first step in solving the healthcare problem is getting the right equipment to work.
“The best equipment to do this is in the field,” Stenstrom says.
“It is hard to do something that does not work.”
A typical medical equipment shop employs around 2,000 people.
They are required to wear protective gear, but they do not have to have the equipment, and if they do have it, they can afford to wear it.
Stenstrom, however, does not recommend using protective equipment in the first place.
“If it is a case of a person who needs medical care, they need to have that protection,” he adds, adding that the health care industry has an incentive to avoid using expensive equipment.
“People are not going to put their money into equipment that costs $3,000,” he explains.
The second major problem in healthcare is how to fund it.
The amount of money that healthcare providers receive from Medicare is limited.
For most healthcare providers, this comes in the form of a flat fee, which covers the costs of operating the facility.
If a provider does not receive a flat-fee payment, it must pay out a lump sum.
But the amount is limited, so it does not cover the full cost of the facility, which often is more than $10,000.
Medicare pays hospitals and healthcare providers about $1,000 per patient per year, and in exchange for this money, the government provides some additional services.
Stensten says that while the money can be helpful, it does have limits.
“Medicare doesn’t pay for a lot of things that are really critical, like hospitalization and surgical procedures,” he notes.
“There is a lot that can go wrong in terms, for example, of how much medication you need to take to keep a patient alive,” Stenson adds.
“And there is a lack of funding to support that.”
So, how can healthcare providers reduce costs and get the