Health Care Organization – Strategy Management Assignment Help
cost-cutting strategies that the committee could recommend to the executive board. ?Describe how these cuts will benefit patient care or business systems.
ideas on how to increase revenue or reimbursement. This answer can include short-term and long-term goals. ?Describe how these revenue or reimbursement systems benefit patient care or the business systems.
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Cost containment strategies in any organization consist in working out methods and procedures to reduce the overall expenses and thereby increasing the profitability of the organization. Typical measures of cost containment do also include reducing the waste in the organization, increasing the productivity as well reducing other unnecessary processes, improving process efficiencies etc. Apart from reducing unnecessary expenses and working out thoughtful spending, cost containment strategies will also work for reducing long term damage to the organizations. Cost containment in health care organizations is quite different from other organizations. The type of equations that these organizations possess between different stakeholders and the type of prevailing influencing factors like impact of insurance companies on overall costing and patient care quality etc makes up a different framework and demands different cost containment strategies. The current report is presented in the position of a member of a committee constituted for cost containment in a health care organization. The report is presented with about five different cost cutting strategies in the organizational set up as part of the recommendations. Also the report included about five different revenues or reimbursement strategies for organization's overall cost containment. There is also discussion presented about the ways and means in which these cost cutting strategies will contribute for overall betterment of the patient care as well as the business systems.
Recommendations for cost containment:
- Cost reduction and avoidance strategy:
As health care organizations do consistently involve in purchase of variety of goods and services as well as there is lot of scope to prevent unnecessary costing and cost increase from the supplier side. It is always possible to do value analysis of the services and the goods as well as ancillary services in the organization. Such costing methodologies will contribute to restrict unnecessary costing as well will also work for reducing the overall cost increase in the organizations. Also by reshuffling the resources it is possible to avoid costing in the organization. This is one of the cost containment possible in the health care organization (Stadhouders, 2018).
- Cost containment in infrastructure of the organization
It is always possible to reduce the overall cost in the organization by working out typical methodological control over the infrastructure in the organizations. Building orientation and construction need to be there in such a format that will reduce the overall costing, the health care organization structure need to be layered it is required for the hospitals to be prepared as integrated function models like integration of the hot floor, hotels, offices and factory. They can yield positive revenues. Example hotel income can supplement the main stream revenues and also will reduce the food costing in the organization. Design of infrastructure should incorporate good design principles and this will reduce the overall transfer time of the patients and between wards and this reduces costing indirectly. As part of the organizational endeavour and infrastructure design sustainable energy resources can be employed to reduce the overall cost of the traditional energy resources.
- Operational management has considerable scope to reduce the overall cost
Deploying management with strong insights as well with exposure to right techniques like lean management which can ensure betterment of the waste reduction and improving the overall operational efficiency and effectiveness. Working out metrics of the operations and comparing the same with the benchmarks in general in the competition can enable betterment of the cost containment. Employing business intelligence analytics and IT can reduce the overall costing in the organizations. Other measure can include improving occupancy, improving utilization, optimizing supply chain etc. All these measures will contribute for the betterment of the organizational cost effectiveness (Mc Williams, 2016).
- Information technology for decision support
Information technology resources when employed for effective management of the health care organization, there is better scope for managing paper records, working for better analytics and evaluation of the health care operations. The insights drawn from such procedures will work for better decision support and contribute for betterment of overall organizational cost reduction.
Better material management (inventory management by ABC analysis), cost containment by employing automated systems for operational control, finance, billing and related operations, reducing manpower and improving accuracy in the system. Better utilization of the manpower and thereby reducing excess manpower contribute for reduction of the overall manpower costing.
Short and long term revenue improvement strategies:
Immediate and short terms revenue channels:
- Expanding the breadth of services, extending the utilization of prevailing specializations to include more range of services and improving the revenues without additional expenses.
- Introducing new services like tele-medicine which can contribute for increase in revenues using the same manpower and professionals.
- Using IT enabled new diagnosis techniques where patient health care diagnosis can be improved and adds to the increase in revenues to the organization (Porter and Lee, 2016).
Long term revenue augmenting channels:
- Working for better marketing strategies which can contribute for improved patient in-turns and improve the occupancy rates in the organization. Also providing access to the remote and disadvantaged communities by mobile health care etc.
- Last but not least, working for committed quality (Orszag, 2016) enforcement and compliance which will add value to the organization and results in long term revenue generation to the organization.
Implications to the patient care and business systems:
These revenues systems, when managed effectively can have positive implications to the patient care as well as for the business systems in the organizations. These revenue systems will work to improve the overall quality of services in the organization. Since the increased revenues pave way for betterment of the existing standards and this inturn can contribute for better health care and better patient satisfaction. Also improvement of the existing strategies can also contribute towards betterment of the organization competitive position in the market. For example development of telemedicine and improvement in the breadth of services in the organization can contribute towards more recognition and more value addition to the organization. However still such initiatives should be taken up without any impact to the existing quality standards of the organization. These efforts should work to ensure continuation of the compliance with the standards and yet should continue to provide improvement in the services. Technologies like IT incorporation into the patient services will enable better insights into the operational services (wang, 2018) and will add upto positive business intelligence for better decision making in the organization.
The overview of the cost containment strategies and the revenue generation recommendations are based on basic outlook towards health care organization in general. Detailed planning of the same is necessary to present with more exhaustive evaluation of existing systems and capabilities. Such detailed evaluation and planning will contribute towards effective cost containment as well towards effective revenue generation in the organization. Apart from instilling such systems in the organization, there is need for chronical inspection of the effectiveness of these strategies and there is need for continuous improvement of their operational performances as well. A comprehensive evaluation and continuous improvement of these strategies will contribute to further improvement of effectiveness of these strategies.
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