Covered by the savings of avoiding the readmission penalty

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Reference no: EM132291481

1. Based on the data provided, identify the readmissions reduction needed so that the cost of the initiative is covered by the savings of avoiding the readmission penalty.

2. Estimate how long it will take to achieve the savings.

Consider the following case: You are the chief quality officer of Andromeda Health. A hospital with an affiliated group, your organization has been struggling to ensure that patients with certain medical conditions, such as heart failure, do not get admitted to the hospital repeatedly. Your chief financial officer (CFO) has informed you that the recent move to value-based care has led to penalties for readmissions within 30 days of patients with congestive heart failure. You have been asked to develop budget-neutral initiatives to reduce readmissions. One of the initiatives you are considering involves a clinical team that works with patients based on protocols. You are also evaluating capital expenses and infrastructure investments to reduce readmissions. Your CFO has shared with you the following details:

Revenue per initial admission: $10,000

Penalty per readmission: Admission is not reimbursed

Cost per admission: $9,000

Number of initial admissions per year: 200

Readmissions: 26

Salary for pharmacist: $50/hour

Salary for medical director: $100/hour

Salary for nurse: $50/hour

Rent for additional space: $1 per square foot per month

Reference no: EM132291481

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