How might international finance apply to business management of a US hospital? U.S. hospital business management may initially appear isolated from international finance concepts. How might having an understanding of international finance be beneficial? Relate and discuss the relevance of any 3 international finance concepts to business management of a US hospital.© BrainMass Inc. brainmass.com December 24, 2021, 10:53 pm ad1c9bdddf
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1. U.S. hospital business management needs a thorough understanding of international finance because demand and supply on the international market also affects demand for medical services, including hospital stays and hospital care. Because this is specifically about the U.S., the U.S. has a world famos hospital that many people travel to for care from all over the world (the Cleveland Clinic). At any given time, there are diplomats, kings, and others there from various countries receiving care due to how advanced their medical services are, and this oftentimes is affected by the demand on the global market for healthcare services. Watching patterns of medical servce demand for non life threatening services is essential.
2. Because the U.S. has hosptials which oftentimes provide both doctors, supplies, and other goods and services to other countries, studying international finance is crucial from a foreign exchange/currency standpoint. Hospitals are also susceptible to currency gains and losses, just as businesses are, which operate in the international market. To protect against the same gains and losses, hospital business management needs to watch the foreign exchange rates in between countries where U.S. hospitals are selling supplies and sending doctors and medical professionals to render services. For example, the Cleveland Clinic now has a location in the Middle East that provides the same level of care as patients can receive here in the U.S.
3. The U.S. often engages in foreign direct investment (FDI), which is a central international finance issue. Due to the constantly changing nature of medicine and hospital related services, medical centers often find that venturing together, even from different countries and across borders, is beneficial to providing excellent care and to bringing down the cost of medical services. By understanding FDI, hospital management in the U.S. is better able to determine if investments should be seized for additional opportunities to provide medical services.© BrainMass Inc. brainmass.com December 24, 2021, 10:53 pm ad1c9bdddf>