Five Challenges Facing Health Systems

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Harvey Mudd College
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Healthcare systems play an important role in the society because it ensures the wellbeing of the community. The healthcare systems ensure that people live healthy lives free of health challenges. In recent years, the health system has been facing numerous challenges that affect the service delivery. The increasing health concerns in the country mean that it is important that the challenges that the healthcare systems are facing are addressed to ensure a healthy society.

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The health systems are faced with several challenges that need to be addressed to promote the performance of the healthcare providers across the country. The first challenge is that health systems have shifted to value-based models (Mosquera, n.d). The change means that healthcare organizations are forced to put up infrastructure and systems that support value-based models. The health systems spend some of their revenues building models that might become irrelevant soon. The success of the model adopted by each of the healthcare providers determines the financing and as such some organizations are underfinanced and have no means of improving their service delivery. The second challenge that the health systems are facing is economic changes in the local markets (Mosquera, n.d). Healthcare organizations must operate according to the demands and conditions of the local markets which fluctuate from time to time. Organizations have the mandate of coming up with ways of entering the markets such as offering quality health care services

The third challenge is that revenue has become the core determinant of the performance of the healthcare organizations (Mosquera, n.d). Healthcare systems are financed as per their performance and as such the financing is not evenly distributed across the healthcare organizations. Today, healthcare organizations have been forced to look for alternative means of financing their activities to remain competitive and relevant in the market. The performance-based financing means that organizations have to come up with ways of reducing the operating costs. This is quite a challenge because many Organizations in the healthcare system lack relevant expertise.

The healthcare organizations can provide quality healthcare by ensuring they promote operational efficiency. Operational efficiency will mean that the agencies cut the operating costs and hence have sufficient funds to invest in the provision of quality healthcare services. Healthcare organizations can also provide quality services by looking for alternative sources of revenue to supplement funds from the payers and government (Mosquera, n.d). Healthcare providers can also offer quality services by forming non-traditional partnerships that will help them collaborate and consult one another. The last way that healthcare organizations can provide quality healthcare is by keeping patients out of the hospital as this will help eliminate unnecessary expenses (Sherman, 2012).

In the contemporary society, financing plays a crucial role in the healthcare systems. Just like in the other sectors of the economy, the healthcare organizations need revenues to operate and offer quality services to the people at all times. Quality health care and only be afforded and availed through sufficient financing of the healthcare providers. Funding is essential in the health systems because it determines the quality of service offered by the healthcare organizations (Sherman, 2012). The organizations are financed according to their performance, and this helps to motivate them to keep providing much better services. Organizations that receive little funding feel challenged, and they come up with ways of improving their services and this result to the overall improvement of the healthcare in the country. In a nutshell, financing is critical in the health systems because it increases fair competitions among the healthcare providers since government funding is based on performance (Sherman, 2012).


Mosquera, M. (n.d). 5 Challenges Facing Health Systems.

Sherman, R., O. (February 23, 2012). 5 Things You Need to Know About Health Care Financing

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