Reference no: EM131670371

Assignment

1 page AMA format-For your initial post, identify two potential drawbacks of implementing a new product or service strictly on the basis of financial viability. For instance: Cutting salaries, cutting jobs, shortening or otherwise limiting costly processes or procedures, etc. What potential issues would have to be addressed by a healthcare leader to move the plan forward?

Min 275 words AMA format -For your response to your classmate (below), please give them feedback. Ask questions, or connect them with resources, that push them to rethink their conclusions.

Classmate Jones' response

Potential Drawbacks

Medical facilities must identify financial obstacles, and cut costs for many occurrences. Organizations may consider costs by looking at labor expenses, real estate and supply chain, in order to improve the performance of the hospital.

One potential example of an improvement and a drawback for a hospital is the use of Electronic Health Records. Integrating information technology is seen as an incentive to hospitals. EHR's have the potential to improve patient data with proper input of demographics, medical history, immunizations, consult reports, medications, and progress notes. Paper documentation is probably to be misplaced or penmanship may be difficult to read. EHR's can improve health costs, provide quality care, and improve meaningful use. EHR's can also improve research with evidence-based data. However, there are disadvantages as well, which include financial issues, privacy, and productivity. EHR's have to be purchased and installed. In an outpatient facility, it was predicted that initial EHR technology would costs $50,000 to $70,000 per physician. Maintenance is also costly, as each staff member would be required to have ongoing training. The EHR may also take time to use, which decreases the productivity, essentially losing more money. Patient privacy is also a concern.

One potential example of a hospital improvement is to identify what is being spent from the accounts payable and the general ledger. The accounts payable and general ledger provide data collection on the expenditures and what has been paid out. When facilities view data information, it can help to determine how the hospital is spending their funds, as well as how to spend their money wisely. Billions of dollars are spent on operations, and sometimes medical facilities may have to cut costs by integrating departments, or merging two different locations to form a new entity. Hospitals may even have to cut costs on shipping and supplies. If the CFO notices items shipped overnight may not be as cost effective, the hospital would be able to save up to $600,000 to $800,000 if the method is changed to next day.

References

1. Menachemi N, Collum TH. Benefits and drawbacks of electronic health record systems. Risk Management and Healthcare Policy. 2011;4:47-55. doi:10.2147/RMHP.S12985.

2. Herman, Bob. How to Create Sustainable Hospital Financial Improvement: Steps. Becker Hospital CFO Report. Published December 12, 2012. Accessed September 30, 2017.

3. The American Health and information Management Association. Identifying Issues in Facility and Provider Mergers and Acquisitions.