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Capella University
BUS-FPX3026 Foundations and Future of Health Care Delivery Management
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The hospital system’s history stretches back to the early 1800s and has undergone significant transformation over the past two centuries. This evolution has brought about critical improvements, resulting in regulations and standards essential for organizational success. This article aims to review the historical milestones of the hospital system, delve into the 2002 Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS), and highlight the importance of HCAHPS—particularly patient satisfaction—on hospital administration.
The origins of hospitals date back to the 1800s, distinctly different from today’s healthcare facilities. Initially referred to as almshouses, these institutions primarily served the poor and those afflicted with diseases. Pesthouses isolated individuals suffering from contagious illnesses. Managed by local physicians, the care provided was often subpar (Niles, 2018).
In 1847, the formation of the American Medical Association (AMA) by a New York physician marked a turning point in healthcare ethics, medical education, and public health standards (AMA, n.d.). This establishment set a new standard for medical practitioners and significantly improved the quality of care.
By the early 1900s, the ownership of hospitals transitioned from individual physicians to local churches and government entities (Niles, 2018). This shift ushered in regulations and the Patient Bill of Rights in the 1970s, which emphasized the patient’s role as a “consumer” with rights and responsibilities.
The 1974 Health Planning Resources Development Act introduced the Certificate of Need (CON), which controlled hospital and nursing home costs by regulating the construction of new facilities (NCSL, n.d.). This policy, managed at the state level but linked to federal funding, had both advantages and disadvantages, especially in the context of patients as healthcare consumers.
The 1980s saw the establishment of the Emergency Medical Treatment and Active Labor Act (EMTALA), ensuring all individuals received emergency care, regardless of their insurance status or ability to pay (Niles, 2018). In response to rising costs, many hospitals began developing outpatient services, including surgical facilities. The Balanced Budget Act of 1997 further supported these cost-reduction efforts through a Medicare reimbursement program (Niles, 2018).
As outpatient services proliferated, regulatory bodies like The Joint Commission emerged to ensure quality care standards were met. According to Niles (2018), The Joint Commission’s guidelines are pivotal in providing optimal patient care within healthcare facilities. This brings us to a crucial development in hospital history—the HCAHPS Survey.
The HCAHPS Survey, developed by the Centers for Medicare & Medicaid Services (CMS) and the Agency for Healthcare Research & Quality (AHRQ), allows for benchmarking and comparison among hospitals (Mazurenko et al., 2017). This survey empowers patients to make informed decisions about their healthcare by providing insights based on the experiences of others.
The survey encompasses various critical areas, including:
With hospital reimbursements from Medicare being directly influenced by HCAHPS scores, it is imperative for hospital administrators to grasp the nuances of the survey and develop robust strategies to meet patient expectations effectively.
For hospital administrators, balancing revenue and expenses is vital for the organization’s sustainability. In this context, patient satisfaction has emerged as a crucial factor, alongside the quality of care, in shaping the overall patient experience. The HCAHPS Survey is administered to patients at least 30 days post-discharge, providing valuable feedback for improvement.
To enhance patient satisfaction, hospital leadership could establish dedicated teams focused on addressing patient concerns daily. As Letourneau (2014) emphasizes, fostering a positive organizational culture significantly impacts patient experiences, which are closely tied to employee satisfaction. Therefore, prioritizing patient satisfaction is essential for hospital administrators, as it directly influences both financial performance and institutional reputation.
The journey of hospitals from isolating individuals with contagious diseases to becoming centers for healing and care is remarkable. Richard Selzer, in his book Taking the World in for Repairs, poignantly described a hospital as not just a building but a space filled with the hopes and struggles of humanity. Improving patient experience remains pivotal to the success of healthcare facilities and the role of hospital administrators.
As the healthcare landscape continues to evolve, understanding and prioritizing patient satisfaction through mechanisms like HCAHPS will remain critical in shaping the future of hospital administration and patient care.
American Medical Association (AMA). (n.d.). AMA history. Retrieved from AMA History
Letourneau, R. (2014). Better HCAHPS scores protect revenue. HealthLeaders, 17, 60-63.
Mazurenko, O., Collum, T., Ferdinand, A., & Menachemi, N. (2017). Predictors of hospital patient satisfaction as measured by HCAHPS: A systematic review. Journal of Healthcare Management, 62(4), 272-283.
National Conference of State Legislatures (NCSL). (n.d.). Certificate of Need State Laws. Retrieved from NCSL
Niles, N. J. (2018). Basics of the U.S. Health Care System (3rd ed.). Jones & Bartlett Learning.
Risse, G. B. (1999). Mending Bodies, Saving Souls: A History of Hospitals. Oxford University Press.
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