Performing A Cost Benefit Analysis

As the healthcare system prepares to select a outsource company as its vendor for this project, what types of information should it give to and gather from each vendor under consideration?

The development of a Shared Governance Educational Program to educate unit-level council chairs has a proposed budget of $14,855.73. This figure is based on the assembly of an Interprofessional Team to lead the initiate and planning stages of the program. The team is based on key individuals hourly such as: the workshop coordinator, the Chief Nursing Officer, Magnet Coordinator, chairs of the hospital-wide councils, nurse educators, a business analyst, and Director of Patient Relations. These human resources were budgeted by their hourly wage based on the number of hours they would be in planning meetings. The educational program was held within the organization in various computer labs, library, conference and classrooms. There was no cost associated with using this space. Supplies needed for the project were for handouts given during each presentation i.e. computer paper for PowerPoint presentation and folders were budgeted.

Indicating the capital justification expenditures is vital for the return on investment of a Per Provider for Electronic Medical Record Implementation. Several key aspects are necessary to mention of the amount and type of expenditure, attainment of key decision criteria, and detailed financial analysis. Hospitals, clinics, and ambulatory care settings even have to indicate important capital expenditures. Factoring in risk is always crucial to consider as well as physician acceptance, competition from HCO’s and volume and market data increase. Health care organizations and universities should be maintaining increased ROI and consistently improving areas of risk and HCO’s aspects to be mentioned in further detail.

CAMC is constantly evolving and following the enactment of the Affordable Care Act (ACA) and the Health Information Technology for Economic and Clinical Health (HITECH) Act, it was decided that a Cost-Benefit Analysis (CBA) (See detailed spreadsheet – Appendix A) should be performed to ensure compliance with these acts. Adoption of the EHR will mean that CAMC would qualify for incentive payments from the Medicaid and Medicare programs for if they can demonstrate that they are making “Meaningful Use” of an EHR system to

The number one thing I would look for in an EHR vendor’s product would be that it meets the CMS (Centers for Medicare and Medicaid Services) EHR incentives program of meaningful use and has been certified by the ONC (Office of the National Coordinator for Health Information Technology).  This will ensure that the EHR program meets the core functions established by the IOM (Institute Of Medicine) Report from July 31, 2003.  I am not going to go into the core functions here, they can be found in the e-book for this class.

The software related Electronic health record implementation need to be appropriate for the needs of the organization and budget.(Swab, & Ciotti, 2010) The EHR software system has many areas of market depending upon the size of the hospital bed size. The first criteria for the vendors according to the bed with 100 and small hospital The Electronic health record system cost about between $ 1 million and 2 for the electronic health record system The electronic health record software cost for the organization about medium hospital cost is much larger than the first one. It comes around three to ten million. The hospital and organization with more than average bed cost for the electronic health record system will be higher amount than the other one. The cost and amount of electronic health record system will depend upon the size of the hospital . The management has to decide about the budget for the organization. (Swab, & Ciotti, 2010). The organization must evaluate its mission and goals in light of its particular strengths and weakness and in light of the demand for services and competition in the external environment. Based on that evaluation it can make a plan that will take advantage of opportunities like Electronic health record implementation according to the goals of an organization.(Finkler, Ward, & Baker, 2007).

However, there’s an enormous amount of money involved to acquire these advanced EHR systems. There are fears of losing the capital investment. According to Prasad (2013), “better medicine means stable business.” With EHRs capability to provide efficient healthcare services, it is helping in containing the healthcare cost. However, some CFOs have looked beyond the financial gains of the EHR implementation. “You have to look beyond that to the intangible benefits, the improvements in delivery care and position your organization to be competitive in the future” (“ROI: Look beyond,” n.d.). Indeed, EHR is a long-term investment for HCOs with a great promise for future

In addition to the core elements, providers will have to choose any five of the ten additional tasks to implement in 2011-2012. Some examples of these might be clinical lab results, patient appointment reminders and drug-formulary checks. This gives the providers a chance to choose their own path toward full EHR implementation and meaningful use. Legislation ties payments to the achievement of advances in health care processes and outcomes. The regulations are specific as to when providers will have to use particular functions in order to be considered meaningful users. The meaningful use rule acknowledges the urgency of adopting the electronic health record and recognizes the challenges it will pose on all providers.

Federal health care costs continue to exceed the American economy fueled by federal health care law, rising enrollments, and increased enrollee spending. The 2010 Affordable Care Act (ACA) significantly changed federal health care policies in the key areas of insurance coverage, access to care, medical care financing, and Medicare program operations. ACA provides good benefits to Americans but comes with a 12.2% increase in cost to the federal government (Meyer, 2017). Health care costs are projected to increase to more than $4 trillion dollars by the end of 2017 nearly doubling since 2006 (Meyer, 2017). Economists project this trend to continue estimating a 6.9% increase annually making it the single highest cost to the federal government (Edwards, 2017). The cost of health care is approaching a crisis if unchecked will continue to grow. Congress has struggled to reach consensus on a more efficient approach to managing health cares costs failing in 2017 to repeal or replace ACA. They will need to reengage now to enact laws to stabilize this looming threat to the American people. I recommend three changes to reduce the impact to federal debt. These changes are repeal individual and employer mandates,

The performance factors most relevant to our vendor selection are cost, flexibility, speed and quality. Our evaluation will prioritize quality first, speed second, flexibility third and cost lastly.

Qu. 1. What major elements do you need to consider in the project to propose a selected EHR system and become a meaningful user?

It can overall increase productivity and profit in the long-term. For instance, my workplace instills usage of electronic medical records for new and current patients for efficiency, productivity, and accuracy for the long-term of patients dental x-rays and health history. The costs involved are considerable and hard to calculate depending on the fees and licensing. According to, (Health Resources and Services Administration, 2016), a persistent problem is demonstrating a return on investment from an (EHR) implementation is often times challenging and may be even more difficult for smaller practices. The cost and effort involved from staff and management is difficult, but necessary to carry out productivity for implementation of (EHR). Every company practice is different and every practice must adapt to changes of implementing (EMR) for the duration of patient accuracy. Aside from the challenges, cost, and effort of implementing (EMR)’s in health care organizations, there is a desire to generate a return on investment (ROI) from them.

The Affordable Healthcare Act has opened up opportunities for many citizens across the United States. Since the bill passed in 2010, the United States Health Department has recorded “about 16.4 million uninsured people have gained health coverage” (2014). Now that many people have been granted the chance to receive a regular check-up from the doctor’s office or go to the emergency room to receive urgent care, there are not enough primary health care professionals to assist those who are in need. The shortage of health care professionals has become a rising problem in the United States. According to the Association of American Medical Colleges (AAMC) over the next 10 years the United States is expected to have a shortage of primary care doctors

Cost-effectiveness analysis (CEA) is the most used technique for evaluating health interventions. In this type of analysis, the basic question is asked, “How much health benefit do we get for our money? The purpose of the CEA is to help decision makers allocate health care resources efficiently. In a CEA, the analyst expresses health benefits in unit of health outcome (e.g., life saved) and the costs in dollars. They calculate a cost-effectiveness ratio: the ratio of dollars expended to health outcome obtained. The analyst compares one intervention with another, so they calculate cost-effectiveness as the difference in cost between two interventions, divided by the difference in health benefit obtained. For example, in a study that assessed the cost-effectiveness of testing cholesterol levels in children, compared with not testing, the cost-effectiveness ratio would be: (Costs with testing – Costs without

There are 7 steps to the procurement process, beginning with identifying the need to purchase the goods and services. During step one, the administrator would supply potential vendors with a request for proposal (RFP). The RFP is a bidding technique used by the identity requesting the procurement for the vendor’s business. By doing this, the administrator has made it known that they have finances available for the EHR system they are looking into (Wikipedia, 2017). The second step in the process is exploring possible vendors. During this step the administrator is using the request for information (RFI) to investigate the ability of the vendor to follow through with the needs of the EHR system they are supplying. The RFI is used to receive hard copy information about the vendors and their supplies. The format allows the administrator to compare multiple suppliers (Wikipedia, 2017). At this point, the administrator would supply possible vendors with a request for quotation (RFQ)