The Crucial Role of Financial Sustainability in the Healthcare System

The importance of a financially sustainable healthcare system cannot be overstated. Not only is it essential for macroeconomic stability, labor market efficiency, and social cohesion, but it also has a significant impact on economic growth. In this article, we will explore the relationship between financial sustainability and the healthcare industry, and examine how financial technology (FinTech) can play a crucial role in promoting sustainable performance.

It is widely acknowledged that healthier citizens or workers are more productive, energetic, mentally stable, and less likely to absent themselves from work due to illness. This highlights the critical importance of investing in the healthcare system to ensure its long-term viability. Moreover, the sustainable development of the healthcare industry is a key stimulant of human capital, which in turn drives economic growth.

Recent research has shown that financial and information communication technology (ICT) development can positively moderate the relationship between FinTech development and sustainable performance. This suggests that the integration of financial institutions with FinTechs can facilitate financing at both the individual and firm level, leading to improved sustainable performance.

To further investigate this relationship, a study was conducted using panel data from 11 Asia-Pacific countries. The results showed that digital financial technologies can improve the sustainable performance of firms in the healthcare industry. This is consistent with technological knowledge spillover theory, which suggests that the development of FinTechs can lead to the transfer of knowledge and innovation between firms.

The findings of this study have important implications for policymakers and healthcare organizations. It highlights the need to address the knowledge gap by identifying factors that improve a firm's sustainability. Maintaining a sustainable, resilient, and durable healthcare system is essential for economies to achieve sustainable competitiveness.

In conclusion, financial sustainability is a critical component of a healthy healthcare system. The integration of FinTechs with traditional financial institutions can facilitate financing and promote sustainable performance. As healthcare organizations set new targets for sustainable practices, it is crucial that they prioritize financial sustainability to ensure their long-term viability.

Sources:

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