Paccu Cost Analysis Framework

The company should consider ethical aspects of the changes in original budget and actual sales/amount. The main reason behind it is the variances in materials, labor, and overhead. In addition to this, the firm should evaluate the actual variance in the materials, labor, and overhead and after that change in budgets in order to maintain business ethics and to reduce improper changes in budget that is unethical aspect of the business (Delaney & Whittington, 2012).

Industrial improvement science (IPS) advises where possible to rigorously pursue the customer or the case of this paper – patient, ‘value’ in as much service planning as possible: many of the processes that provide little or no value to the patient are usually the cause of wasted time, resources, capacity and finance and can in places lead to sources of potential harm that take away from the improving health agenda. In order to really understand what provides value, quality and high level care to the patient, we need to consider improvements from the patient’s perspective, as they are the expert by experience.

When contemplating health care policy changes, several economic issues in health care must be considered. These include the financial issues affecting the health sector and have an impact on health policies. Policy makers face unending challenges due to the health sector revenues that are always rising. Another challenge is decreased funding and failure of the health insurance services.

Affordability should be applied to the hospital setting. There have been many patients that are in the hospital on an extended stay and they are not able to afford such things like a television in their room or, maybe the patient does not have family and they are on a fixed income. The hospital should have a policy in place that allows the hospital to go into a fund that is set up for patients that are in need. Hospitals should apply policies within their organizations that benefit the community and staff. A policy should be in place to ensure

In healthcare system the highest quality medical care means” the greatest benefit to patients at the lowest possible cost” (Burke & Ryan, 2014, p. 3). “The Agency for Healthcare Research and Quality (AHRQ) defines quality health care as doing the right thing for the right patient, at the right time, in the right way to achieve the best possible results” (NCQA, p. 3) According to American college of physicians, the single most reason for the health care cost is higher healthcare spending. There are several factors involved in the high health care cost such as inappropriate use of technologies, lack of patient centered care, overuse of the reimbursement, excessive price for health care facilities, increased organizational cost, and health accountability are some of the reasons for increased health care cost. In order to decrease the cost, the available health resources be used judiciously and equitably. Understanding these factors and identifying the potential factors of health care costs assists in providing quality and effective services and thus improves the health outcomes (ACP, 2009).

A challenge that the healthcare nation is facing is to provide the quality of care that is expected and obtain low healthcare cost. Working hand in hand with the private sector and government is in hopes of improving the quality of care that each patient deserves and maintaining the cost so that research can continue. The purpose of this paper is to look into relationships between healthcare cost and quality healthcare.

The pay-for-performance program will take health care from basic health care delivery to high-quality health care delivery. The way that this is going to affect the patient "customer" is because they are going to have an overall better experience with more attention to their overall health. The patient will also see benefits because there are incentives for patients when they live a healthy lifestyle. One of the incentives that the patient will see is in cost savings in the immediate future. Pay-for-performance is positive for all stakeholders involved within the program because it delivers on the main goal which is to increase the quality of care to patients while reducing the costs.

As expense for-volume offers approach to charge for-worth, doctor 's facilities and social insurance frameworks are finding that their time-tried blocks and-mortar development methodologies will no more serve their long haul objectives. Today 's quality driven clinical and plans of action require a movement in center — from experience based solution to populace wellbeing administration. Systems to advance development — fundamental for quality based achievement — will depend on patient maintenance and new instruments for picking up piece of the pie.

Key information as well as a step-by step process to develop and analyze a policy was provided within the LearnScape module one activity. Jones & Bartlett Learning (2014) identified these steps as gathering data, identifying stakeholders, key factors, and writing the policy. Although, gathering data seemed self-explanatory, I wasn’t exactly sure what a stakeholder was until I completed this assignment. A stakeholder is any group, organization or individual that will be directly affected by the policy (Jones & Bartlett Learning, 2014). It is within my scope of practice as a future healthcare provider to identify the need for policy change or development. This assignment has taught me that any breakdown in the policy development process can lead to cost wastefulness and prolongation of changes that need to occur to provide a safer, more effective patient care atmosphere.

Evaluation plan Accountability stems action and restructuring of an organization for innovation mean all parties involved will have to be reactive and proactive. However, ACO utilizes the value metric framework within the healthcare delivery system by improving quality and providing access to care with the objective that should reflect positive outcomes. The platform to introduce an ACO in an Urban community is strategizing a plan that involves monitoring and isolating all competition, updating technology, integrates regulatory procedures, and collect on all reimbursement. Also, an evaluation plan for the scenario will serve as a method to bridge all outcomes, goals, objectives, and measurable programs that will change over time. According to

This method of calculating costs could be beneficial or not depending on the organization and its size. In a healthcare setting, any healthcare institution is seen as delivering quality care and therefore most decisions regarding choice of the institution come down to the pricing. In order to compete for patients, the healthcare institution must bring its price down to the absolute margin. This will over time affect the institution badly as it will leave the institution without funds to replace the capital equipment. This can eventually lead to closing down of the financially weaker

Against a background of increasing demands on limited resources, health economics is exerting an influence on decision making at all levels of health care. Health economics seeks to facilitate decision making by offering an explicit decision making framework based on the principle of efficiency. It is not the only consideration but it is an important one and practitioners will need to have an understanding of its basic principles and how it can impact on clinical decision making.

After getting the views and suggestions all discuss this with hospital management and other stakeholders of the hospital to come with a reasonable prices which will make sure the health care provide by the hospital is affordable to everyone and is best quality. As much the patient may wish the prices to be reduced the quality of the health care cannot be compromised to the expenses of providing cheap health care. The prices being suggested should be in a position to support the normal functioning of the hospital.

In conclusion, a structure on lower cost is pertinent to providing the right model for the system. Achieving a prosperous medical outcome in the end requires a cost budget that will benefit not only the Health care organization but the patients as well. Another benefit for patients is to implement a low cost strategy that will allow patients to receive medical treatment and also pay out cost that meets the individual’s budget. Creating an income chart would also be a way to know what a patient can afford to pay.

The cost of the health care industry has always been rising since the early 1980s. It has been a growing concern in both the industry and society. Massachusetts General Hospital (MGH) is no exception. Even though the average length of stay (LOS) for the patients in MGH has been declining (Exhibit 10), it is still the highest compared to their competitors (Exhibit 6). Besides the cost, there is no uniformity of process and standardization across different facilities and departments of the hospital. MGH lacks communication and coordination between the facilities.