Week 7: Project & Resource Management for Health Service Organization
Resource Allocation
As you examined last week, control mechanisms assist health care administrators in determining the best approaches to mobilizing resources in order to achieve efficient and effective practice in HSOs. Within the context of control mechanisms, health care administrators must consider which resources are best suited for process improvement and for sustained business practice. How do health care administrators decide which resources should be placed where for sustained operations? What types of considerations must health care administrators keep in mind when allocating resources for process improvement initiatives, maintenance, or new ventures for HSOs?
1. This week, you examine resource allocation methods used by HSOs. You also consider how health care administrators use financial and risk consequences in executing resource allocation decision making. You perform a breakeven analysis as a way to evaluate which investment recommendations you might make as a current or future health care administrator when engaged in resource allocation decision making.
Learning Objectives
Students will:
· Analyze resource allocation methods used by health services organizations
· Assess financial and risk consequences associated with resource allocation decision making
· Perform and calculate a breakeven analysis
· Evaluate investment recommendations based on financial and risk data for resource allocation decision making.
Learning Resources
Required Readings
Longest, B. B., & Darr, K. J. (2014). Managing health services organizations and systems (6th ed.). Baltimore, MD: Health Professions Press. Chapter 11, “Use of Analytical Techniques in Resource Allocation” (pp.548-558).
Barasa, E. W., Molyneux, S., English, M., & Cleary, S. (2015). Setting healthcare priorities in hospitals: A review of empirical studies. Health Policy and Planning, 30(3), 386–396.
Setting Healthcare Priorities in Hospitals: A Review of Empiracl Studies by Barasa, E.; Molyneux, S.; English, M.; Cleary, S., in Health Policy and Planning, Vol. 30/Issue 3. Copyright 2015 by Oxford University Press – Journals. Reprinted by permission of Oxford University Press – Journals via the Copyright Clearance Center.
Gurtner, S. (2014). Making the right decisions about new technologies: a perspective on criteria and preferences in hospitals. Health Care Management Review, 39(3), 245-254.
Assignment Part
Considerations with Resource Allocation and Risk in Health Services Organizations
Consider the following scenario:
Champion Healthcare is an HSO that serves a large network of hospitals, research laboratories, and clinics across various regions. Recently, the board of directors of Champion Healthcare has requested that all network health facilities develop patient portal technology to enhance patient engagement. As a health care administrator at one of the network hospitals, you have been called in to a stakeholder meeting to provide information on what technology is currently in use at your hospital. The agenda also includes learning about the aims of the newly designed patient portal technology so that you may implement the next steps to roll out the technology at your hospital.
Physicians and health care professionals who deliver health care directly are to promote this patient portal technology not only as a way to integrate electronic health records but also to allow patients the opportunity to engage in informed health decision making. Similarly, regional clinics and research laboratories are to use the patient portal technology to integrate assessments, lab results, and other tests used for diagnoses to corroborate physician and patient information. The board of directors has recommended that the patient portal technology be planned, designed, and tested over the next 12 months. You have been asked to determine the feasibility of using this patient portal technology at your hospital. You are also to engage with your teams to ensure that physicians and patients are fully informed on how to access and use the new technology.
· For this Assignment, reflect on the scenario presented, and consider the financial and risk consequences associated with implementation of the patient portal technology. Consider what actions you as a current or future health care administrator should keep in mind when planning for resource allocation on a new project. Think about potential risks for both your staff and patients as they concern operations for the HSO.
For the break-even analysis portion of this Assignment, assume that the patient portal will generate revenue of $20 per patient in co-payments and will require a fixed cost of $50,000 for the initial investment and variable cost of $5 per patient for on-going maintenance.
The Assignment (6 pages):
1. Describe how you would assess the financial and risk consequences associated with the patient portal technology decision.
2. Calculate the breakeven, and explain the results of the analysis.
3. Explain what investment recommendation(s) you would propose as a current or future health care administrator for the allocation decision. Be specific and provide examples.
By Day 7
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