Health Savings Account

A health savings account is a tax-advantaged account for an individual with high deductible health plans that want to save for medical expenses that those plans do not cover. Contributions are made into the account by the individual or their employer and are limited to a maximum amount each year. This is the ultimate investment account since the contributions to your health savings account are invested tax-free over time and can only be used for qualified medical expenses. The money in your health savings account can be used to invest in stocks, mutual funds, ETFs, bonds and other securities which can yield significant returns on the financial markets. Growth on your investments are tax free which makes having a health savings account ideal for doing investments. These accounts are ideal for self-employed individuals or those who are a part of the informal sector in any economy. If the funds are not used then it can be used for investments which would build more capital for more significant medical needs or just as an investment fund for retirement. This is one of the best tax-advantaged savings and investment tool that is available. Contributions are not subjected to tax, the money can be invested and grow tax free and withdrawals are not taxed once they are used for qualified medical expenses. 

There is also the issue of alternative healthcare financing for informal sector operators which makes up more than half of the economy in most developing countries. The informal sector may include those with employment in street vending, taxi driving, domestic work, farming or self employed contractors. Traditional health insurance model is not an option for the informal sector because of affordability, lack of mandatory health insurance laws for the poor, irregular income, unpredictable healthcare expenses, lack of risk pooling, lack of inclusion, fragmented access to healthcare, restricted access to health insurance, limited coverage and administrative challenges. Innovative models that can provide better systems for alternative healthcare financing include: 

1. Health Savings Account- This allows individuals to set aside funds specifically for healthcare expenses. These accounts are usually paired with high-deductible insurance plans, where individuals pay out-of-pocket costs up to a certain threshold. Health savings accounts can empower individuals to make informed decisions about their health care spending and provide a safety net for unexpected medical expenses

2. Medical Microinsurance- This refers to health insurance products designed for low-income individuals or households including those in the informal sector. These products usually have low premiums and simplified administrative processes. Microinsurance plans can provide coverage for specific healthcare services or a package of health benefits. These products are offered through partnerships between insurance providers, microfinance institutions and community based organisations.

These approaches to healthcare financing that are tailored to the circumstances of low income households are necessary for the advancement of universal access to quality healthcare services.

The medical laboratory will be at the forefront of solving many of these problems related to alternative healthcare financing. Lets partner together as we make quality and efficient healthcare delivery available to everyone.

Medical Supplier Financing

This is product sourcing strategy from a financial perspective. Factor financing has more positives than negatives to offer the healthcare space. The business of saving lives should not be deterred because of lack of proper financing. Buyers and sellers should be able to carry out smooth transactions that benefit patients so they can have access to medical diagnostic and therapeutic services. 

A factor is an intermediary agent that provides cash or financing to healthcare businesses by purchasing their account receivables. In short, a factor is a funding source; the factor agrees to pay the company the value of an invoice- less a discount for commission and fees. Factoring can help healthcare businesses improve their short-term cash needs by selling their receivables in return for an injection of cash from the factoring company. The practice is also known as factoring, factor financing and accounts receivable financing.

Product sourcing strategic financial management includes:

1. Payables finance

2. Dynamic discounting

3. Payables extension

4. Receivables discounting

5. Factoring

6. Forfaiting

7. Borrowing base finance

8. Purchase-order finance

9. Inventory finance

10. Distributor finance

The five main parts of a factoring transaction include:

1. the "fee" paid to the factor

2. the "interest expense" paid to the factor for the advance of the money

3. the "bad debt expense" associated with portion of the receivables that the seller will remain unpaid and uncollectable

4. the "holdback receivable" amount to cover merchandise returns and any other loss or gain the seller must attribute to the sale of the receivables. Sometimes the factor's charges paid by the seller (the factor's client) covers a discount fee, additional credit risk the factor must assume, and other services provided.

5. the "profit" which is the difference between the price the factor paid for the invoice and the money received from the debtor, less the amount loss due to non-payment.

This type of financing is ideal for all types of healthcare businesses. Medical Laboratories want to play an integral role in the applications of factor financing in the healthcare space and thus ensure the timely delivery of healthcare to patients. The patient always benefit whether the transaction is supply chain financing (reverse factoring), factor financing (accounts receivables financing) or providing access to working capital by purchasing invoices for unpaid health insurance claims (medical factoring). Healthcare factor financing can easily metamorphose into private credit and private equity investments.

Mentorship in Laboratory Medicine

Most successful entrepreneurs had mentors that gave them free business advice. These entrepreneurs did not allow the advice to go to waste but they used the advice to pivot their business strategy for the long-term. Much has been said about the importance of business coaching and consulting and why every entrepreneur should find a mentor to help them through starting and organizing a business. Business advice can be just as important as funding in the early stages of starting any business. Finding role models and mentors can be hard especially in this era of social media where everyone has established themselves as experts. Mentors can be voices of reason, fonts of knowledge and sounding boards all wrapped up in one package. Great advice can determine the survival of any entrepreneur who is new to starting and running a business. All these principles are applicable to starting and running a Medical Laboratory. 

Sir Richard Branson is a billionaire businessman who understands and preaches the importance of good mentors. His mentor was legendary airline entrepreneur, Sir Freddie Laker, who founded Laker Airways and who Richard Branson greatly admired. In the early days of Virgin Altlantic, Sir Freddie Laker gave Richard Branson some valuable business advice that he still uses to this day. Virgin Atlantic lacked the big marketing budgets of its larger competitors such as British Airways. Therefore, Laker encouraged Branson to become to face of Virgin Atlantic and drive his own publicity for free. Everyone can do this today with social media. Laker said: "Use yourself. Make a fool of yourself. Otherwise you won't survive."

Laboratory Information Management System in Jamaica

Healthcare Management Information System in Jamaica

DYXNZ BOXYZ: Project XYZ

Product Sourcing Strategy is directly linked to supply chain engineering, factor financing, operations research and data science. This project seeks to improve inventory management using data in order to ensure that product sourcing strategies are efficiently implemented in healthcare systems. This project will use an operating system built on the linux kernel as well as the source code of G-MOSS. A team will be built to customize open source software to create DYXNZ BOXYZ as a management information system for product sourcing strategy. There will be features for stock movements, location hierarchy, and reporting on this system. This is a project that will help to teach individuals how to use open source software as a learning tool in the information age. Code reviews will be done by volunteer programmers using the open source maturity model before deployment into healthcare systems. The primary goal of this project is be a servant to low income communities that may lack the medical supplies they need because of inefficient supply chains.

To help make this project a success we will be asking for donations and assistance from persons who want to contribute to this cause. Project XYZ is free and we want to make a difference in the world and change medical laboratories for the future. This will be the last blog post before the deployment of DYXNZ BOXYZ version 0.0.1.

Inventor or Investor

After researching and studying some of the great business leaders and entrepreneurs, I have picked up a pattern from the data gathered. Most of the great ones are either inventors, investors and/or imitators. Elon Musk invented his own rockets to create SpaceX which will probably make him the first trillionaire. This involved imitating and learning from the mistakes of past aerospace engineers. Warren Buffett invested in Coca Cola and Apple Inc. which made him one of the richest men in the world. At one point, Warren Buffett was the richest man in the world. This involved imitating and learning from the mistakes of past financiers such as Benjamin Graham. This means that you either become good at science and engineering or learn finance and marketing to become a great business leader. For some, it is important to learn both which is easily done through imitation. In the USA, Silicon Valley is the hub for science and engineering inventors while Wall Street is the hub for finance and marketing investors. So my advice is to become an inventor, an investor and/or an imitator if you want to be an entrepreneur.

Medical Laboratories have started to adopt the principles of inventing, investing, and/or imitating in order to become large conglomerates. This is the formula for having the greatest impact on society via innovation and investments. In Jamaica, most inventors use the services of the Scientific Research Council while investors use the services of the Jamaica Stock Exchange. Medical Laboratories are now becoming technology and asset management giants. On March 8, 1994, National Health Laboratories Inc. reorganized as a holding company called National Health Laboratories Holdings Inc. which merged with Roche in 1995 to form LabCorp. Be the change you want to see!