History of Health Care Administration
In the health care field, administration may be considered at departmental levels such as supervisors and department heads, as well as the administrator of a facility. Health care administration is found in most health care facilities, including hospitals, long-term care centers, assisted living and home health care organizations.
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AHA Founded
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Health care administration actually became organized in the 1920s when the American Conference on Hospital Service was founded. Known as the AHA, its goal was to promote and improve hospital services in the United States. The first budget for health care administration was passed in 1927, for a total amount of $75,000. Also in 1927, one of the first studies on the rising costs of medical care was performed by the Committee on the Costs of Medical Care.
Growth of the AMA
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The 1930s saw growing numbers of hospitals joining the American Hospital Association (AMA) and beginning to store patient medical records, which was a giant leap in the organization and maintenance of health information for health care administration.
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Commission on Hospital Care Created
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Health insurance was offered for the first time and the Commission on Hospital Care was created for evaluating hospital facilities and services. By the mid 1940s, the AHA designed and developed the Council on Prepayment Plans and Hospital Reimbursement, a major step toward offering uniform and quality patient care throughout the United States, and prompting guidelines for both rural and urban hospital administration around the country.
JCAHO Founded
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The 1950s saw an increase in organization and development of overseeing associations that provided consistent and standard guidelines of care to be followed by all health care providers. The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) also was founded, which oversees the services, quality and standards of health care facilities around the country.
Medicare and Medicaid Launched
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The 1960s saw the launch of Medicare and Medicaid services to help fund health care for seniors and indigent Americans. Nearly 19 million people enrolled in 1967, while in 2006 nearly 43 million Americans were signed up for such services. In 1969, the JCAHO devised new guidelines and regulations and standards for accrediting hospital facilities.
HMOs Created
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Among further improvements was the development of the Professional Standards Review Organization in 1972 that focused on the ability of health care facilities to provide continuing quality of health care. Hospital administrators encouraged physicians to join hospital boards to help provide governance. Patients rights were emphasized, as was the creation of Health Maintenance Organizations (HMOs).
Congressional Acts
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Case management and finding sources for revenue encouraged many formerly independent hospitals to join national hospital systems. The 1990s saw multiple acts introduced into Congress in health care administration, including the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Balanced Budget Act in 1997. In the new millennium, health care providers and administrators deal with nursing and general practice physician shortages and the establishment of the Hospital Quality Alliance, designed to generate higher quality of care data and information as well as a revision of the Patient's Bill of Rights.
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