The Impact of Health Care Reform on Rural Hospitals

Junior (College 3rd year) ・Healthcare&Medicine ・APA ・2 Sources

Many federal, local and state healthcare laws and regulations intended to protect the patients. In practice, however, the rules are problematic operationally, and they result in processes that are not value added to both the patient and the organization. These rules and regulations increase the cost of offering healthcare services. The Health Insurance Portability and Accountability Act, for instance, is a federal law enacted to improve efficiency and effectiveness of healthcare system (Paul et al., 2012). The law necessitates organizations to use electronic medical records which are expensive for rural hospitals. Accreditation and regulatory agencies in healthcare industry serve essential roles in setting standards, regulating healthcare institutions, enforcing compliance with set standards and evaluating the performance of healthcare organizations. The two bodies assess healthcare organizations by collecting and analyzing data.
The legal and regulatory requirements have necessitated that healthcare organizations come up with policies that will protect all the stakeholders. They are policies that if followed, they will improve the provision of services in the industry. One of the regulatory issues that have an impact on healthcare is the CMS regulations. The value-based purchasing programs are now in place, and qualified physicians are starting to feel the penalty phase of CMS quality reporting and use of meaningful initiatives. On the trends, use of technology has led to data security issues as the patient privacy issues are being violated. Healthcare providers are continually looking for ways to step up data security and avoid violation of Health Insurance Portability and Accountability Act which can negatively impact the organization. The liability system gives physicians an incentive to take the optimal amount of care against medical injury. Doctors, therefore, bear the cost of damages that they negligently cause. The physicians should consequently balance the costs of injuries against the cost of precautionary medical treatment (Daniel P, 2017). They should embark on procedures that are sensible from a social welfare perspective.


Daniel P. Kessler. (2017, November). The Effects of Liability Rules on Medical Practice. Retrieved from

Paul Larrat,, Rita M. Marcoux,, & Randy Vogenberg, (2012). Impact of Federal and State Legal Trends On Health Care Services. Retrieved from

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