Healthcare administration concerns itself with the provision of healthcare services so that availability, accessibility, and quality of healthcare are achieved among all communities.

Healthcare administration concerns itself with the provision of healthcare services so that availability, accessibility, and quality of healthcare are achieved among all communities. The goal for healthcare administrators is to foster and create an environment and conditions upon which healthcare service providers can practice both efficiently and effectively. Health administration also seeks to ensure the provision of a safe, comfortable, and compassionate environment where people can receive health services. Whereas healthcare administration is primarily concerned with the ensuring profitability from the provision of healthcare, it is incumbent upon the administrators to ensure that they focus on providing top quality and highly efficient patient care as well (Fries et al., 1993).

The following are some of the reasons for the high healthcare costs:

• New technologic innovations

• Fewer nursing staff

• Use of expensive new diagnostic tests and treatments

• Increased costs of health care goods and services

• High costs of marketing of new drugs, devices or procedures

• Unnecessary overuse of specialists

• High hospital administrative costs

• High Doctors’ charges

• Malpractice costs especially regarding insurance claims

• The increase in the numbers of the aging population (Bodenheimer, 2005).

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