At the beginning of my health care management classes, I would remind my students of a simple fact. Health care is a business. In fact, I would say this, "Health care is a Business. It's a Business. It's a Business. It's a Business." I believe a lot of times people want to forget that health care is a business. For some people, it's this idealistic, pie in the sky entity that takes care of people and is always compassionate and caring and has to reach some level of near godliness.
Here is the truth. Health care is an exchange of goods and services (aka a business). It is not simply taking care of patients and hoping for them to get better. Health care makes up close to 18% of the Gross Domestic Product in the United States. Gross Domestic Product is the sum of all the goods and services consumed within our country during the year. Therefore, nearly $1 out of every $5 is spent on health care goods and services.
The goods and services in health care range from hospitals and doctors offices (which is what most people typically consider health care), to developing new drugs, identifying new treatment methods, manufacturing medical supplies, and providing insurance, to name a few. The health care industry is not a flat world, but instead is a highly intricate and complex planet, with each system connected to the other in some way.
At the hot molten core of the health care planet, is the customer, what we call the patient. Again, I know that some people don't like to think of patients as customers, but that is what they are. Without patients (or customers), there would be no health care industry. The example I often like to use is that of a hospital. Imagine a hospital hired the best doctors, nurses, and researchers; purchased the latest equipment; designed the best buildings; and followed all quality standards. However, no patients came to the hospital. The hospital would not be able to run. A hospital, even with the best doctors, nurses, researchers, equipment, and standards, cannot function without its core -- the customer, or the patient.
Here is the truth. Health care is an exchange of goods and services (aka a business). It is not simply taking care of patients and hoping for them to get better. Health care makes up close to 18% of the Gross Domestic Product in the United States. Gross Domestic Product is the sum of all the goods and services consumed within our country during the year. Therefore, nearly $1 out of every $5 is spent on health care goods and services.
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| Photo courtesy of Pixabay.com |
The goods and services in health care range from hospitals and doctors offices (which is what most people typically consider health care), to developing new drugs, identifying new treatment methods, manufacturing medical supplies, and providing insurance, to name a few. The health care industry is not a flat world, but instead is a highly intricate and complex planet, with each system connected to the other in some way.
At the hot molten core of the health care planet, is the customer, what we call the patient. Again, I know that some people don't like to think of patients as customers, but that is what they are. Without patients (or customers), there would be no health care industry. The example I often like to use is that of a hospital. Imagine a hospital hired the best doctors, nurses, and researchers; purchased the latest equipment; designed the best buildings; and followed all quality standards. However, no patients came to the hospital. The hospital would not be able to run. A hospital, even with the best doctors, nurses, researchers, equipment, and standards, cannot function without its core -- the customer, or the patient.
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