Assignment: Identify and describe your healthcare organization

Assignment: Identify and describe your healthcare organization ORDER NOW FOR CUSTOMIZED AND ORIGINAL ESSAY PAPERS ON Assignment: Identify and describe your healthcare organization Use the following guideline to criticize the attached powerpoint named; (powerpoint 4&5) Assignment: Identify and describe your healthcare organization Identify mistakes from the powerpoint and criticize it, both good and bad based own the guideline below.The assessment is to see if the the powerpoint presentation addressed all the questions asked. To review- each group was to develop a PowerPoint presentation devoted to the best financial practices for health care. Identify and describe your healthcare organization (e.g. hospital, physician organization, laboratory, other). List at least five “Best financial practices” that you believe are important for your healthcare organizations to follow. Base your choice on your reading in this course and research. Explain why each of these practices are important for your healthcare organizations given the current policy and regulatory environment. Explain what can go wrong if the practice is not followed. Give a review and assessment on the attached power point separately powerpoint_4.pptx powerpoint_5.pptx + THE FINANCIAL PRACTICES Best Practices in Military Hospitals (MTF) ? Its primary mission is to maintain the health of military personnel, so they can carry out their military missions; and to deliver health care during wartime. Often described as the medical readiness mission, this effort involves medical testing and screening of recruits, emergency medical treatment of troops involved in hostilities, and the maintenance of physical standards of those in the armed services ? The MHS also provides, where space is available, health care to dependents of active duty service members, to retirees and their dependents, and to some former spouses. Such care has been made available since 1966, (with certain limitations and copayments), through the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) and its successor, TRICARE. In October 2001, TRICARE benefits were extended to retirees and their dependents aged 65 and over. ? The MHS has a $50 billion budget and serves about 10.26 million beneficiaries,[3] including active duty personnel and their families and retirees and their families.[4] The actual cost of having a government-run health care system for the military is higher because the wages and benefits paid for military personnel who work for the MHS and the retirees who formerly worked for it, is not included in the budget. MHS employs more than 137,000 in 65 hospitals, 412 clinics, and 414 dental clinics at facilities across the nation and around the world, as well as in contingency and combat-theater operations worldwide. + + Best Financial Practice Applied to Military Hospitals ? Military hospitals operate under the Department of Defense and primarily attend to active duty military, retirees, and veterans. However, the financial practices in healthcare apply. As with any healthcare management organization (HMO), best financial practice are applied in accomplishing the daily business of customer care. + Best Financial Practices ? For any business to be successful it must understand finance management and sound financial practices. In healthcare, with recent reforms, organizations are moving forward by implementing systems of effective financial practices. ? “Financial practices” refers to the methods or standard operating procedures developed for carrying out accounting, financial reporting, budgeting and other activities related to business finances. + Best Financial Practices ? Some of the best financial practices for an organization to follow include: ? Aligning budgets ? This includes rolling forecasts, multiyear plans, and detailed plans. Keeping them in sync allows for a more informed decisions about current and future goals ? Promoting/creating feedback loops ? Information and communication should one-directional.Assignment: Identify and describe your healthcare organization Reports can provide operational leaders and physicians with valuable detailed information which they can act upon. ? Setting internal controls ? Effective financial practices incorporate strong internal controls into standard procedures. This helps to instill a culture of discipline in all. + Best Financial Practices ? Predictive analysis tools ? ? Help to establish consistency and transparency in financial reporting. Remain in line with long-term goals and future growth plans Root out variability between facilities ? This not only applies to the financial team, but the entire organization should all be on the same page and working toward the same goals. Each facility should run things the same way. Process and data flow is to be the same — accounts are turned over the same time, returned on the same schedule, documented the same between facilities. + THE IMPORTANCE OF BEST PRACTICE ? A part of the Federal Balanced Budget Act of 1997 required the Health Care Financing Administration-HCFA (now CMS) to create a new Medicare “Outpatient Prospective Payment System” (OPPS) for hospital outpatient services -analogous to the Medicare prospective payment system for hospital inpatients, known as “Diagnosis Related Groups” or DRGs. This OPPS was implemented on August 1, 2000. Prior to Aug. 1, 2000, hospitals were reimbursed by Medicare for outpatient services on a “cost-basis”. Current Procedural Terminology (CPT) codes were not required on the UB-92 claim forms and hospitals received reimbursement based on their reported “costs” for drugs, supplies, Evaluation and Management (E&M) services. + THE IMPORTANCE OF BEST PRACTICE ? To control the growth of outpatient expenses, the Tricare Outpatient Perspective Payment system was implemented. Tricare Outpatient Perspective Payment has self-enabled MTFs to calculate their own deductibles and cost sharing/ copayments, process payments faster by modifying how the information was entered and saved money by implementing Fee-For-Service. The Medicare OPPS evolved out of Congressional mandates for replacement of Medicare’s cost-based payment methodology with a prospective payment system (PPS). This change affects all U.S hospitals and patients covered by Tricare from the way data is enter all the way to how payments will be received. With a population of over nine million beneficiaries, Tricare needed to find a more efficient system that saved money, processed claims quicker and allowed patients to be billed accurately. + THE IMPORTANCE OF BEST PRACTICE ? Keeping up with every new law and regulation updated is most health care organizations priority However, there is a distinct need, now more than ever, to not only interpret regulations as they apply to policy, but to provide operational guidance to maximize clinical outcomes and financial growth, and to minimize liability. + Best Financial Practices: When Not Used ? For any business to be successful it must understand finance management and sound financial practices. In healthcare, with recent reforms, organizations are moving forward by implementing systems of effective financial practices. ? “Financial practices” refers to the methods or standard operating procedures developed for carrying out accounting, financial reporting, budgeting and other activities related to business finances. + When Best Practices Are Not Followed ? Aligning budgets ? ? Promoting/creating feedback loops ? ? When financial planning takes place in a silo, the lack of coordination can render them to be collectively meaningless and/or inaccurate. If information is only one-directional, company leaders are missing out on the valuable data contained in the reporting documents. Assignment: Identify and describe your healthcare organization Those reports would likely impact important decisions that business leaders need to make. Setting internal controls ? Goals are an important part of financial planning. Without defined procedures and controls throughout the organization, the lack of collaboration will be reflected in the company’s bottom line. + When Best Practices Are Not Followed ? Predictive analysis tools ? ? Just as a retrospective review helps organizations to learn from their mistakes, in order to meet their goals and effectively plan for current day-to-day operations, organizations must look to the future. Without this analysis, the approach will be inherently reactive. Root out variability between facilities ? When an organization has multiple facilities and each are operated as their own independent entity, despite all revenue and reporting rolling up into one primary organization, not only will it be an accounting nightmare, but efficiencies across locations will not be achieved. + Conclusion ? Best financial practices within the military hospital is essential as civilian healthcare. Using sound financial judgement and current analysis tools ensure the viability within a changing and demanding healthcare market that has shifted toward a consumer driven industry. + References ? http://www.hhnmag.com/articles/4012-take-a-look-at-how-market-forces-willimpact-health-care ? http://www.healthcarefinancenews.com/news/healthcare-billing-and-collectionbest-practices ? ? Becker, S. J., Swenson, R. R., Cataldo, A. M., Esposito-Smythers, C., & Spirito, A. (2014). Barriers to Seeking Mental Health Services Among Adolescents in Military Families.Professional Psychology: Research & Practice, 45(6), 504513. doi:10.1037/a0036120 ? ? Sportelli, L. (2014). The Critical Importance of “Best Practice” Documents. ACA News (American Chiropractic Association), 10(7), 18-19 2p. ? ? Loflin, M. (2015). Stone shop safety best practices: knowing the facts on safety guidelines will not only make for a secure work environment, but it will also have fabricators prepared when OSHA or the ministry of labour stop by for a shop inspection. Stone World, (6). 51. + Best Financial Practices In A Healthcare Organization + 5 Best Financial Practices ? Healthcare ? Core Organizations Must Be Vigilant Competencies to Incorporate In A Healthcare Organization ? Basics of Finance ? Budgeting ? Time Value Analysis ? Capital ? Recognizing 101 Budgeting Staff as a Key Expense + Healthcare Organizations Must Be Vigilant ? The Affordable Care Act is changing the face of healthcare with new regulatory implications and healthcare organizations must meet this requirements and remain compliant. ? Healthcare Organizations are facing unprecedented changes in the structure of financial reimbursement and must be prepared. ? Reimbursement Rates, Increased Patients with Medicaid and Medicare, Electronic Health Records, ICD-10 Coding and Meaningful Use Healthcare are all factors that will affect the bottom line. ? Successful projects are built around a careful examination of the demographics and utilization information that will support the financial feasibility study’s revenue projections. With limited budgets, it’s important that providers concentrate on projects with the greatest revenue potential. ? “Hospital organizations are facing more moving targets than ever. With the changing health care industry, including more insured people, how will overall utilization change and what will be the desired services? How will the shift in payer mix to more Medicaid eligible and less private pay affect net revenue? With continued medical advancement, will the inpatient and outpatient mix change length of stay? A financial feasibility study may not be a crystal ball, but it should offer careful analysis of these and many more questions” (Wilson, Bill, Delong, Bradley). + Core Competencies to Incorporate in the Healthcare Organization ? Establishing policies and procedures to incorporate Standard Operating Procedures and strict Governance will enhance profitability, viability and provide for future growth. ? Centralization of core operations, such as purchasing and procurement, clinical care protocols and revenue cycle operations, is fundamental for the alignment of processes and the proper utilization of technology. ? Price discrepancies, limited visibility into spend, misaligned clinical and supply teams and poor internal controls all cause health systems to limit their full savings potential. One small example is centralized purchasing to automate the highly-manual procurement process and capture tremendous supply chain savings opportunities through efficiencies and transparency. ? Efficient procurement operations can optimize savings and operational expenses. ? Institutional and Operational Experts in Finance and Healthcare Information Technology.Assignment: Identify and describe your healthcare organization + Basics of Finance: Developing A Plan of Action In A Hospital System ? Planning ? ? ? ? Prioritization of Initiatives ? ? ? ? Timing- When is the planning process initiated Calendar Year or Fiscal Year? Recognizing Staff As A Key Expense Planning Long Term Financial Health of the Organization Understanding and Complying with Regulatory Guidelines Increasing Revenue & Reducing Expenses Determining the NPV of Capital Expenses Competition and Clinical Variations ? ? ? ? How does the competition affect your patient base? What services can we provide differently? How is our pricing comparative? What new technology can we offer? How can we provide growth opportunities for our organization? + Budgeting 101 ? “t’s probably safe to say that few people like to budget. But even fewer like the nasty surprises that could be in store if you don’t plan ahead for your costs. So it’s worth it to spend a little time budgeting for health care” (Association, 2012). ? “Economists’ approaches to priority setting focus on the principles of opportunity cost, marginal analysis and choice under scarcity. These approaches are based on the premise that it is possible to design a rational priority setting system that will produce legitimate changes in resource allocation. However, beyond issuing guidance at the national level, economic approaches to priority setting have had only a moderate impact in practice. In particular, local health service organizations – such as health authorities, health maintenance organizations, hospitals and healthcare trusts – have had difficulty implementing evidence from economic appraisals. Yet, in the context of making decisions between competing claims on scarce health service resources, economic tools and thinking have much to offer” (Peacock et al., 2010). ? “Healthcare organizations can adopt an eight-step strategic capital-budgeting method to efficiently allocate limited capital. The method includes setting the criteria for evaluating capital expenditure proposals, classifying proposals, ensuring the proposals are accompanied by comprehensive information, calculating the costs of proposals and rating proposals based on the established criteria” (Kleinmuntz & Kleinmuntz, 1999). ? “Program budgeting and marginal analysis (PBMA), multi-criteria decision analysis (MCDA), and accountability for reasonableness (A4R) are commonly used approaches for healthcare priority setting. These approaches can be used to improve the fairness and legitimacy of priority setting within healthcare organizations whilst ensuring that resources are allocated in the best manner possible. Health technology assessment is often viewed as a one-off activity, whereas it should be seen as an input into a formal process for priority setting at the local or regional level. Key elements for high performance have been identified that can be used to improve priority setting practice in health service organizations. Examining investments and disinvestments, and thus opportunities for re-allocation, should be a part of an ongoing resource management strategy regardless of the external fiscal climate” (Mitton, Dionne, & Donaldson, 2014). + Time Value Analysis ? A Time Value Analysis will provide healthcare managers with essential information to make significant decisions concerning financial strategies for the future. Hospital management may need to realize that it may be years before present value produces positive cash flow. A hospital needs to know that future values of interest/cash are worth the upfront investment. Time lines make it easier to visualize when the cash flows in a particular setting occur. ? Example: ? Formula used to obtain the future value: + Time Value Analysis (cont.) Assignment: Identify and describe your healthcare organization ? Documentation of appropriate value of cash flow that occur at different points in time should be analyzed in order to understand that the money you have now is not the same as it will be in the future and vice versa. A spreadsheet is an effective way of monitoring and tracking this information for management. ? Time value analysis is an important financial management tool because it involves the valuation of future cash flows. Not planning or conducting a Time Value Analysis will limit the hospital ability in finding out what the future of cash flow will be versed what is invested up front. ? Understanding the potential for interest earned on money over a period of time provides the organization with extensive financial flexibility. + Capital Budgeting ? Capital budgeting is the process in which a business determines and evaluates potential expenses or investments that are large in nature. These expenditures and investments include projects such as building a new plant or investing in a long-term venture. Often times, a prospective project’s lifetime cash inflows and outflows are assessed in order to determine whether the potential returns generated meet a sufficient target benchmarks, also known as “investment appraisal“(“Capital Budgeting Definition | Investopedia”, 2003). • Capital budgeting is important because it will allow a health care manager to access what direction to go in when meeting the needs of the health care organization. • Risk are also analyzed in the capital budgeting process • Capital budgeting gives management the ability to access increased value of a organization (Obriant, Obriant, & profile, 2015) + Examining Expenses Healthcare Organizations have multiple expenses and these expenses can change at a rapid pace. It is imperative that the organization constantly scrutinize their spending and ensure that the revenue earned matches or exceeds the expenses. ? Factors influence spending in a Healthcare Organization: ? Staff is a key expense ? Providers primary expenses and resources are the staff. ? Project efficiencies will allow providers to achieve desired results ? Considering the FTEs in key to increase service lines and implement growth change ? Successful organizations identify staffing benchmarks and adjust accordingly for operational impacts. ? New Healthcare Technology ? Electronic Health Record ? New Hardware and Software to support the EHR ? Imaging Technology, CT Scanners, MRI Machines, PET Scans ? Medical Supplies ? Medical Equipment + What Can Go Wrong If A Healthcare Organization Is Not Financially Sound ? Healthcare organizations need to have the foresight, governance and financial structure in order to survive in todays healthcare climate. ? To remain sustainable Healthcare Organizations need to continuously think forward, stretch their imaginations and produce quality patient care, set strategic priorities, and implement programs that meet these priorities, and the revenue to support the vision and mission of the organization. ? Managers and Staff need to have a sound understanding of the financial processes and if they do not they will not be able to carry out their roles and responsibilities and the organization and patient safety will be impacted. ? Every function is determined by the amount of money there is to support the function. If the revenue is not in place, jobs will be lost, excess expenditures that are not necessarily needed and healthcare costs rise. ? Best practices to produce the best patient outcomes will begin to suffer and patient care will decline. ? If the organization does not provide for long term growth solutions, and revenue producing programs the organization will slowly get lost around the competition and not be able to rebound, entering into a closing phase and eventually go out of business. + References ? Association, H. M. S. (2012). Budgeting for health care. Retrieved June 28, 2016, from http://www.healthcareplainandsimple.com/get-my-money’s-worth/budgeting-for-health-care.aspx ? Capital Budgeting Definition | Investopedia. (2003). Investopedia. Retrieved 1 July 2016, from http://www.investopedia.com/terms/c/capitalbudgeting.asp ? Gapenski, Louis C, Pin, George. . Understanding Healthcare Financial Management. Health Administration Press, Chicago Illnois Aupha Washington D. C. ? Kleinmuntz, C. E., & Kleinmuntz, D. N. (1999, April 1). – document – A strategic approach to allocating capital in healthcare organizatio … Get a 10 % discount on an order above $ 100 Use the following coupon code : NURSING10

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Assignment: Identify and describe your healthcare organization

Assignment: Identify and describe your healthcare organization ORDER NOW FOR CUSTOMIZED AND ORIGINAL ESSAY PAPERS ON Assignment: Identify and describe your healthcare organization Use the following guideline to criticize the attached powerpoint named; (powerpoint 4&5) Assignment: Identify and describe your healthcare organization Identify mistakes from the powerpoint and criticize it, both good and bad based own the guideline below.The assessment is to see if the the powerpoint presentation addressed all the questions asked. To review- each group was to develop a PowerPoint presentation devoted to the best financial practices for health care. Identify and describe your healthcare organization (e.g. hospital, physician organization, laboratory, other). List at least five “Best financial practices” that you believe are important for your healthcare organizations to follow. Base your choice on your reading in this course and research. Explain why each of these practices are important for your healthcare organizations given the current policy and regulatory environment. Explain what can go wrong if the practice is not followed. Give a review and assessment on the attached power point separately powerpoint_4.pptx powerpoint_5.pptx + THE FINANCIAL PRACTICES Best Practices in Military Hospitals (MTF) ? Its primary mission is to maintain the health of military personnel, so they can carry out their military missions; and to deliver health care during wartime. Often described as the medical readiness mission, this effort involves medical testing and screening of recruits, emergency medical treatment of troops involved in hostilities, and the maintenance of physical standards of those in the armed services ? The MHS also provides, where space is available, health care to dependents of active duty service members, to retirees and their dependents, and to some former spouses. Such care has been made available since 1966, (with certain limitations and copayments), through the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) and its successor, TRICARE. In October 2001, TRICARE benefits were extended to retirees and their dependents aged 65 and over. ? The MHS has a $50 billion budget and serves about 10.26 million beneficiaries,[3] including active duty personnel and their families and retirees and their families.[4] The actual cost of having a government-run health care system for the military is higher because the wages and benefits paid for military personnel who work for the MHS and the retirees who formerly worked for it, is not included in the budget. MHS employs more than 137,000 in 65 hospitals, 412 clinics, and 414 dental clinics at facilities across the nation and around the world, as well as in contingency and combat-theater operations worldwide. + + Best Financial Practice Applied to Military Hospitals ? Military hospitals operate under the Department of Defense and primarily attend to active duty military, retirees, and veterans. However, the financial practices in healthcare apply. As with any healthcare management organization (HMO), best financial practice are applied in accomplishing the daily business of customer care. + Best Financial Practices ? For any business to be successful it must understand finance management and sound financial practices. In healthcare, with recent reforms, organizations are moving forward by implementing systems of effective financial practices. ? “Financial practices” refers to the methods or standard operating procedures developed for carrying out accounting, financial reporting, budgeting and other activities related to business finances. + Best Financial Practices ? Some of the best financial practices for an organization to follow include: ? Aligning budgets ? This includes rolling forecasts, multiyear plans, and detailed plans. Keeping them in sync allows for a more informed decisions about current and future goals ? Promoting/creating feedback loops ? Information and communication should one-directional.Assignment: Identify and describe your healthcare organization Reports can provide operational leaders and physicians with valuable detailed information which they can act upon. ? Setting internal controls ? Effective financial practices incorporate strong internal controls into standard procedures. This helps to instill a culture of discipline in all. + Best Financial Practices ? Predictive analysis tools ? ? Help to establish consistency and transparency in financial reporting. Remain in line with long-term goals and future growth plans Root out variability between facilities ? This not only applies to the financial team, but the entire organization should all be on the same page and working toward the same goals. Each facility should run things the same way. Process and data flow is to be the same — accounts are turned over the same time, returned on the same schedule, documented the same between facilities. + THE IMPORTANCE OF BEST PRACTICE ? A part of the Federal Balanced Budget Act of 1997 required the Health Care Financing Administration-HCFA (now CMS) to create a new Medicare “Outpatient Prospective Payment System” (OPPS) for hospital outpatient services -analogous to the Medicare prospective payment system for hospital inpatients, known as “Diagnosis Related Groups” or DRGs. This OPPS was implemented on August 1, 2000. Prior to Aug. 1, 2000, hospitals were reimbursed by Medicare for outpatient services on a “cost-basis”. Current Procedural Terminology (CPT) codes were not required on the UB-92 claim forms and hospitals received reimbursement based on their reported “costs” for drugs, supplies, Evaluation and Management (E&M) services. + THE IMPORTANCE OF BEST PRACTICE ? To control the growth of outpatient expenses, the Tricare Outpatient Perspective Payment system was implemented. Tricare Outpatient Perspective Payment has self-enabled MTFs to calculate their own deductibles and cost sharing/ copayments, process payments faster by modifying how the information was entered and saved money by implementing Fee-For-Service. The Medicare OPPS evolved out of Congressional mandates for replacement of Medicare’s cost-based payment methodology with a prospective payment system (PPS). This change affects all U.S hospitals and patients covered by Tricare from the way data is enter all the way to how payments will be received. With a population of over nine million beneficiaries, Tricare needed to find a more efficient system that saved money, processed claims quicker and allowed patients to be billed accurately. + THE IMPORTANCE OF BEST PRACTICE ? Keeping up with every new law and regulation updated is most health care organizations priority However, there is a distinct need, now more than ever, to not only interpret regulations as they apply to policy, but to provide operational guidance to maximize clinical outcomes and financial growth, and to minimize liability. + Best Financial Practices: When Not Used ? For any business to be successful it must understand finance management and sound financial practices. In healthcare, with recent reforms, organizations are moving forward by implementing systems of effective financial practices. ? “Financial practices” refers to the methods or standard operating procedures developed for carrying out accounting, financial reporting, budgeting and other activities related to business finances. + When Best Practices Are Not Followed ? Aligning budgets ? ? Promoting/creating feedback loops ? ? When financial planning takes place in a silo, the lack of coordination can render them to be collectively meaningless and/or inaccurate. If information is only one-directional, company leaders are missing out on the valuable data contained in the reporting documents. Assignment: Identify and describe your healthcare organization Those reports would likely impact important decisions that business leaders need to make. Setting internal controls ? Goals are an important part of financial planning. Without defined procedures and controls throughout the organization, the lack of collaboration will be reflected in the company’s bottom line. + When Best Practices Are Not Followed ? Predictive analysis tools ? ? Just as a retrospective review helps organizations to learn from their mistakes, in order to meet their goals and effectively plan for current day-to-day operations, organizations must look to the future. Without this analysis, the approach will be inherently reactive. Root out variability between facilities ? When an organization has multiple facilities and each are operated as their own independent entity, despite all revenue and reporting rolling up into one primary organization, not only will it be an accounting nightmare, but efficiencies across locations will not be achieved. + Conclusion ? Best financial practices within the military hospital is essential as civilian healthcare. Using sound financial judgement and current analysis tools ensure the viability within a changing and demanding healthcare market that has shifted toward a consumer driven industry. + References ? http://www.hhnmag.com/articles/4012-take-a-look-at-how-market-forces-willimpact-health-care ? http://www.healthcarefinancenews.com/news/healthcare-billing-and-collectionbest-practices ? ? Becker, S. J., Swenson, R. R., Cataldo, A. M., Esposito-Smythers, C., & Spirito, A. (2014). Barriers to Seeking Mental Health Services Among Adolescents in Military Families.Professional Psychology: Research & Practice, 45(6), 504513. doi:10.1037/a0036120 ? ? Sportelli, L. (2014). The Critical Importance of “Best Practice” Documents. ACA News (American Chiropractic Association), 10(7), 18-19 2p. ? ? Loflin, M. (2015). Stone shop safety best practices: knowing the facts on safety guidelines will not only make for a secure work environment, but it will also have fabricators prepared when OSHA or the ministry of labour stop by for a shop inspection. Stone World, (6). 51. + Best Financial Practices In A Healthcare Organization + 5 Best Financial Practices ? Healthcare ? Core Organizations Must Be Vigilant Competencies to Incorporate In A Healthcare Organization ? Basics of Finance ? Budgeting ? Time Value Analysis ? Capital ? Recognizing 101 Budgeting Staff as a Key Expense + Healthcare Organizations Must Be Vigilant ? The Affordable Care Act is changing the face of healthcare with new regulatory implications and healthcare organizations must meet this requirements and remain compliant. ? Healthcare Organizations are facing unprecedented changes in the structure of financial reimbursement and must be prepared. ? Reimbursement Rates, Increased Patients with Medicaid and Medicare, Electronic Health Records, ICD-10 Coding and Meaningful Use Healthcare are all factors that will affect the bottom line. ? Successful projects are built around a careful examination of the demographics and utilization information that will support the financial feasibility study’s revenue projections. With limited budgets, it’s important that providers concentrate on projects with the greatest revenue potential. ? “Hospital organizations are facing more moving targets than ever. With the changing health care industry, including more insured people, how will overall utilization change and what will be the desired services? How will the shift in payer mix to more Medicaid eligible and less private pay affect net revenue? With continued medical advancement, will the inpatient and outpatient mix change length of stay? A financial feasibility study may not be a crystal ball, but it should offer careful analysis of these and many more questions” (Wilson, Bill, Delong, Bradley). + Core Competencies to Incorporate in the Healthcare Organization ? Establishing policies and procedures to incorporate Standard Operating Procedures and strict Governance will enhance profitability, viability and provide for future growth. ? Centralization of core operations, such as purchasing and procurement, clinical care protocols and revenue cycle operations, is fundamental for the alignment of processes and the proper utilization of technology. ? Price discrepancies, limited visibility into spend, misaligned clinical and supply teams and poor internal controls all cause health systems to limit their full savings potential. One small example is centralized purchasing to automate the highly-manual procurement process and capture tremendous supply chain savings opportunities through efficiencies and transparency. ? Efficient procurement operations can optimize savings and operational expenses. ? Institutional and Operational Experts in Finance and Healthcare Information Technology.Assignment: Identify and describe your healthcare organization + Basics of Finance: Developing A Plan of Action In A Hospital System ? Planning ? ? ? ? Prioritization of Initiatives ? ? ? ? Timing- When is the planning process initiated Calendar Year or Fiscal Year? Recognizing Staff As A Key Expense Planning Long Term Financial Health of the Organization Understanding and Complying with Regulatory Guidelines Increasing Revenue & Reducing Expenses Determining the NPV of Capital Expenses Competition and Clinical Variations ? ? ? ? How does the competition affect your patient base? What services can we provide differently? How is our pricing comparative? What new technology can we offer? How can we provide growth opportunities for our organization? + Budgeting 101 ? “t’s probably safe to say that few people like to budget. But even fewer like the nasty surprises that could be in store if you don’t plan ahead for your costs. So it’s worth it to spend a little time budgeting for health care” (Association, 2012). ? “Economists’ approaches to priority setting focus on the principles of opportunity cost, marginal analysis and choice under scarcity. These approaches are based on the premise that it is possible to design a rational priority setting system that will produce legitimate changes in resource allocation. However, beyond issuing guidance at the national level, economic approaches to priority setting have had only a moderate impact in practice. In particular, local health service organizations – such as health authorities, health maintenance organizations, hospitals and healthcare trusts – have had difficulty implementing evidence from economic appraisals. Yet, in the context of making decisions between competing claims on scarce health service resources, economic tools and thinking have much to offer” (Peacock et al., 2010). ? “Healthcare organizations can adopt an eight-step strategic capital-budgeting method to efficiently allocate limited capital. The method includes setting the criteria for evaluating capital expenditure proposals, classifying proposals, ensuring the proposals are accompanied by comprehensive information, calculating the costs of proposals and rating proposals based on the established criteria” (Kleinmuntz & Kleinmuntz, 1999). ? “Program budgeting and marginal analysis (PBMA), multi-criteria decision analysis (MCDA), and accountability for reasonableness (A4R) are commonly used approaches for healthcare priority setting. These approaches can be used to improve the fairness and legitimacy of priority setting within healthcare organizations whilst ensuring that resources are allocated in the best manner possible. Health technology assessment is often viewed as a one-off activity, whereas it should be seen as an input into a formal process for priority setting at the local or regional level. Key elements for high performance have been identified that can be used to improve priority setting practice in health service organizations. Examining investments and disinvestments, and thus opportunities for re-allocation, should be a part of an ongoing resource management strategy regardless of the external fiscal climate” (Mitton, Dionne, & Donaldson, 2014). + Time Value Analysis ? A Time Value Analysis will provide healthcare managers with essential information to make significant decisions concerning financial strategies for the future. Hospital management may need to realize that it may be years before present value produces positive cash flow. A hospital needs to know that future values of interest/cash are worth the upfront investment. Time lines make it easier to visualize when the cash flows in a particular setting occur. ? Example: ? Formula used to obtain the future value: + Time Value Analysis (cont.) Assignment: Identify and describe your healthcare organization ? Documentation of appropriate value of cash flow that occur at different points in time should be analyzed in order to understand that the money you have now is not the same as it will be in the future and vice versa. A spreadsheet is an effective way of monitoring and tracking this information for management. ? Time value analysis is an important financial management tool because it involves the valuation of future cash flows. Not planning or conducting a Time Value Analysis will limit the hospital ability in finding out what the future of cash flow will be versed what is invested up front. ? Understanding the potential for interest earned on money over a period of time provides the organization with extensive financial flexibility. + Capital Budgeting ? Capital budgeting is the process in which a business determines and evaluates potential expenses or investments that are large in nature. These expenditures and investments include projects such as building a new plant or investing in a long-term venture. Often times, a prospective project’s lifetime cash inflows and outflows are assessed in order to determine whether the potential returns generated meet a sufficient target benchmarks, also known as “investment appraisal“(“Capital Budgeting Definition | Investopedia”, 2003). • Capital budgeting is important because it will allow a health care manager to access what direction to go in when meeting the needs of the health care organization. • Risk are also analyzed in the capital budgeting process • Capital budgeting gives management the ability to access increased value of a organization (Obriant, Obriant, & profile, 2015) + Examining Expenses Healthcare Organizations have multiple expenses and these expenses can change at a rapid pace. It is imperative that the organization constantly scrutinize their spending and ensure that the revenue earned matches or exceeds the expenses. ? Factors influence spending in a Healthcare Organization: ? Staff is a key expense ? Providers primary expenses and resources are the staff. ? Project efficiencies will allow providers to achieve desired results ? Considering the FTEs in key to increase service lines and implement growth change ? Successful organizations identify staffing benchmarks and adjust accordingly for operational impacts. ? New Healthcare Technology ? Electronic Health Record ? New Hardware and Software to support the EHR ? Imaging Technology, CT Scanners, MRI Machines, PET Scans ? Medical Supplies ? Medical Equipment + What Can Go Wrong If A Healthcare Organization Is Not Financially Sound ? Healthcare organizations need to have the foresight, governance and financial structure in order to survive in todays healthcare climate. ? To remain sustainable Healthcare Organizations need to continuously think forward, stretch their imaginations and produce quality patient care, set strategic priorities, and implement programs that meet these priorities, and the revenue to support the vision and mission of the organization. ? Managers and Staff need to have a sound understanding of the financial processes and if they do not they will not be able to carry out their roles and responsibilities and the organization and patient safety will be impacted. ? Every function is determined by the amount of money there is to support the function. If the revenue is not in place, jobs will be lost, excess expenditures that are not necessarily needed and healthcare costs rise. ? Best practices to produce the best patient outcomes will begin to suffer and patient care will decline. ? If the organization does not provide for long term growth solutions, and revenue producing programs the organization will slowly get lost around the competition and not be able to rebound, entering into a closing phase and eventually go out of business. + References ? Association, H. M. S. (2012). Budgeting for health care. Retrieved June 28, 2016, from http://www.healthcareplainandsimple.com/get-my-money’s-worth/budgeting-for-health-care.aspx ? Capital Budgeting Definition | Investopedia. (2003). Investopedia. Retrieved 1 July 2016, from http://www.investopedia.com/terms/c/capitalbudgeting.asp ? Gapenski, Louis C, Pin, George. . Understanding Healthcare Financial Management. Health Administration Press, Chicago Illnois Aupha Washington D. C. ? Kleinmuntz, C. E., & Kleinmuntz, D. N. (1999, April 1). – document – A strategic approach to allocating capital in healthcare organizatio … Get a 10 % discount on an order above $ 100 Use the following coupon code : NURSING10

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