Allocation of Resources

Valerie Brown

ALLOCATION OF RESOURCES

HCM631-1201B-01

Kimberly Adelman, PhD

February 27, 2012

Introduction

The finance department along with the clinical staff assigned to the dialysis treatment center gathered today to discuss concerns they are having about the current budget for the dialysis center. Due to the executive vice president having an subsequent engagement, I was invited to attend. During the meeting, I was informed the treatment center is over budget leaving the clinical staff worried that would not be able to provide quality healthcare for their dialysis patients. Although the discussion was very detailed, the financial department could not sway the clinical staff to see how being over budget affects the center in a negative way. I've done some research to see if we can provide some alternatives for this problem.

Conflicts in Resource Allocation

Conflict will exist between clinical staff and financial mangers when allocating resources because the two groups will be evaluating allocation from two different perspectives. Financial pressures force hospitals to make difficult decisions. The ultimate goal for management is to make decisions that will be fair for everyone involved, but in some cases it will be hard to determine what is fair and what is not. Resource allocation is considered to be an ethical issue because it will involve questions of justice, what is right or wrong for all parties involved. The allocation of resources is a complex procedure and consists of direct needs based resource allocation. Resource allocation requires that health care organizations allocate resources within the constraint of limited funding by setting priorities. Physicians will be challenging financial managers to allocate money needed for equipment, supplies and staffing. Financial managers will be doing everything in their power to keep cost down by not purchasing additional equipment or hiring additional employees in order to stay within the budget. Resource allocation should provide the necessary resources to ensure that everyone is able to comply with patient care regardless of budget constraints.

Health Care Organization's Mission Statement Plays a Role in Resource Allocation

Resource allocation issues are economic in nature but they essentially raise issues relating to an organization's mission statement and ethical views. Every organization chooses a philosophical method that works well with the mission and goals of the organization and that is best suited for that organizations as a whole. When it come to resolving resource allocation conflicts, the philosophical method chosen will highly influence the way in which decisions will be made. For this reason,