NURS-FPX6008: Economics and Decision Making in Health Car
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Implementation Plan for a New Economic Opportunity
Learner’s Full Name
School of Nursing and Health Sciences, Capella University
NURS-FPX6008: Economics and Decision Making in Health Care
1 Strategic Implementation Plan for a New Economic Development Initiative Full Name of the Learner Capella University’s School of Nursing and Health Sciences is a prestigious institution. NURS-FPX6008: Economics and Decision Making in Health Care is a course in which nurses learn about economics and decision making in health care. Name of the instructor, month, and year Capella University retains ownership of the copyright.
The reproduction and distribution of this document are strictly prohibited. Two-Year Plan for the Exploration of a New Economic Opportunity The establishment of an urgent care center (UCC) on the premises of Whilborne Medical Center (WMC) is the economic initiative that has been proposed to the senior management of WMC. The term “UCC” refers to a health-care facility that provides immediate care for injuries and illnesses that are not life-threatening (Yee et al., 2013). The UCC at WMC will strive to provide safe, timely, patient-centered, efficient, and effective health care to the community while also making an effort to address health inequalities in the community, according to the mission of the organization. To determine the feasibility of establishing the UCC, an economic and environmental analysis was carried out. Following this, a business plan was presented to the senior management of the World Minerals Corporation. The management team believes that this initiative has the potential to be beneficial to the organization both in the short and long term, and that it should be implemented.
In this context, a plan for establishing the UCC has been developed as part of the implementation process. WMC’s implementation plan includes a five-year budget for the UCC, an implementation timeline for the UCC, an analysis of how the UCC might impact WMC, and an explanation of how WMC should respond to dynamic environmental forces. The proposed Urgent Care Center will have a budget. In order to demonstrate the projected revenue and expenses that the UCC expects to incur over a five-year period following the completion of its construction, a budget has been prepared by the UCC.
Building the UCC budget has been done with an assumption that it will be finished by the end of 2018. The budget plan, as a result, includes revenue and expenditure information for the first five years of operation, from 2019 to 2023. The expected patient volume multiplied by the average consultation charges over a 5-year period was used to calculate the revenue per year over that period.
It is anticipated that approximately 357 patients will attend. Capella University retains ownership of the copyright. The reproduction and distribution of this document are strictly prohibited. A PLAN FOR THE IMPLEMENTATION OF A NEW ECONOMIC OPPORTUNITY 3 visits to the UCC per week, with a charge of approximately $156 per patient per visit (AMN Healthcare, 2015; Yakobi, 2017). The revenue generated during the first year of operation is expected to be approximately $2,730,000, which is a significant increase from the previous year.
According to the “Urgent Care Center Market,” revenue at UCCs is expected to grow by 5.3 percent per year through 2018. Staff salaries, basic utilities, insurance, and other operating expenses will be incurred by the UCC as part of its operating expenses (such as administrative and marketing costs). Compensation for full-time physicians ($232,000), nurse practitioners ($112,000), medical assistants ($35,000), and medical receptionists ($32,000) is included in the salaries for the first three years (U.S. Bureau of Labor Statistics, 2017).
However, in years four and five, additional staff will be hired in order to deal with the increased number of patients in the system. An additional full-time nurse practitioner and a second full-time physician will be added to the team, and their salaries will be calculated using the estimated actual growth rate of employee salaries of 2.7 percent per annum, as reported by Human Resources (Economic Policy Institute, 2018).
It is anticipated that expenditure on basic utilities will increase by 5 percent per year. Insurance costs are expected to rise in the fourth and fifth years of operation as a result of the addition of two new employees. Based on historical trends observed in WMC’s financial statements, other operating expenses are assumed to account for 12 percent of annual revenue. The project is expected to have a total capital cost of $350,000 when completed.
An amount equal to one-half of this cost will be covered by WMC’s reserves, with the remaining half covered by a bank loan. As a result, WMC will need to borrow $175,000 in order to fund this economic development initiative. For example, if the loan has a 5-year term and the interest rate is 7 percent per annum, the annual loan repayment will be $41,580.
According to the budget, the UCC will generate a cash surplus during the first five years of operation. Depending on how many employees are hired in each year after the third year of operation, it is possible that the cash surplus generated in the fourth and fifth years will be lower than in the third year. During the first five years, the total cash surplus is [A1] Observation: You did a fantastic job planning ahead! Capella University retains ownership of the copyright.
This document is protected by intellectual property rights and may not be copied or distributed in any way. IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY 4 is valued at $7,783,369.30. (see Appendix for more information on the 5-year budget for the proposed economic initiative). The Economic Initiative is being implemented. The first step in the implementation plan is to establish a timeline for when the UCC will be made available to the general public.
In order for WMC senior management to approve the project and for a bank to approve the loan, it is anticipated that it will take approximately 2 months. Because the construction of the UCC is expected to take approximately 7 months, the process is scheduled to begin in June 2018 and be completed by the end of December 2018. Following discussions with WMC’s senior management, it has been determined that the UCC will be fully operational by the first month of 2019.
Better clinical outcomes and a better patient experience in an urgent care setting can be achieved through active engagement and participation by stakeholders. The WMC board of directors and senior management, as well as the physicians, nurses, and other WMC employees, are among the internal stakeholders who should be aware of this economic development initiative and its implications.
Collaborating with all internal stakeholders to obtain their inputs during the initial stages of plan implementation and decision-making is critical to ensuring that the plan is implemented successfully. Meetings with stakeholders will be held on a regular basis to discuss the progress of the UCC and to devise strategies for improving the quality of its health care services.
WMC has always attempted to focus on the six areas of health-care quality identified by the Institute of Medicine (IOM), namely timeliness, safety, patient-centeredness, efficiency, equity, and effectiveness, and has done so for the past several years (Agency for Healthcare Research and Quality, 2015). WMC will inform all internal stakeholders that the UCC will also focus on these six areas and that the establishment of the UCC will move the organization one step closer to achieving its vision of serving the community.
Capella University retains ownership of the copyright. The reproduction and distribution of this document are strictly prohibited. A PLAN FOR THE IMPLEMENTATION OF A NEW ECONOMIC OPPORTUNITY 5 Staff members at the UCC will be encouraged to keep the WMC’s vision in mind as they work to achieve their short- and long-term objectives in order for this initiative to be sustainable. Customers, or patients, are the most important external stakeholders in the health-care industry.
Patients who receive prompt and timely care from excellent service providers will be more likely to return to the UCC and to refer new patients to the facility in the future. Having compassion for patients, treating them ethically and culturally appropriately, and effectively communicating medical information will all help to foster patient loyalty while also ensuring that they adhere to their treatment plan (see “Helping patients make informed decisions,” 2014.)
The increase in patient flow and goodwill that will result as a result of this will help the UCC become a successful and sustainable venture. The UCC will adhere to the principles of the American Academy of Urgent Care Medicine in order to ensure that the center’s rollout is done in an ethical and culturally sensitive manner. These principles include not discriminating against patients on the basis of gender, age, race, color, religion, culture, disability, or other characteristics (Agency for Healthcare Research and Quality, 2015).
The UCC will have a diverse workforce that will be able to recognize and relate to cultural differences; become familiar with health care delivery methods that are tailored to patients’ specific socioeconomic, linguistic, and cultural requirements; and provide unbiased care to all patients in the community. As a result, physicians will improve the patient experience and medical outcomes by providing ethical and culturally sensitive health care services (Cigna, n.d.).
The rollout of the UCC will be a success if all stakeholders are actively involved in the process and committed to achieving the center’s vision. This will allow WMC to remain competitive in the health care industry. The implementation plan, on the other hand, contains some areas of uncertainty. Successful implementation of the UCC is highly dependent on the timely disbursement of the loan required for its construction, which is critical to the project’s success.
If the loan is not disbursed on time, then the Copyright 2018 Capella University is forfeited. The reproduction and distribution of this document are strictly prohibited. A PLAN FOR THE IMPLEMENTATION OF A NEW ECONOMIC OPPORTUNITY When the loan amount becomes available, the rollout will have to be scheduled for a different time period, which will cause the implementation plan to be delayed.
Furthermore, it is uncertain whether the actual number of patient visits at the UCC will correspond to the estimated patient volume in the future. The reason for this is that people in the community may be unaware of the benefits of receiving care at the UCC because of a lack of sufficient information, misinformation, or misunderstanding. The center will then be responsible for any operating losses incurred as a result of the low patient turnout.
Moreover, the aging of the population suggests that the number of people who will require health care in the future will increase in the foreseeable future (Yakobi, 2017). WMC’s health-care professionals will be overburdened as a result of this. As a result, WMC must be prepared to accommodate a greater number of patients than it may have anticipated in the past. Using the revenue generated by the UCC, WMC can be expanded over the next few years, which will help to mitigate the negative effects of the UCC.
Building additional departments or centers, enhancing existing facilities and equipment, and hiring additional employees are all potential ways to increase the capacity and workforce of Western Medical Center. Dealing with Dynamic Environmental Forces: Strategies for Success WMC’s urgent care services may be impacted by a variety of environmental factors, including the presence of a retail health clinic in the center’s immediate vicinity and the possibility of new UCCs opening in the area.
The retail health clinic and the UCC share some important characteristics, such as easy accessibility, extended hours, convenience, and the provision of health care at an affordable price, among other things (Chang et al., 2015). As a result, both clinics are viable alternatives for patients. Although not life-threatening, UCCs can be extremely beneficial to patients who require immediate medical attention from physicians for conditions that are not life-threatening.
Urban Community Clinics (UCCs), which are frequently staffed with emergency medicine physicians and equipped with more testing facilities than a retail clinic, are capable of providing high-acuity care in an urban setting (Chang et al., 2015). As a result, Capella University is protected by the Copyright 2018. The reproduction and distribution of this document are strictly prohibited. A PLAN FOR THE IMPLEMENTATION OF A NEW ECONOMIC OPPORTUNITY The UCC is a financially viable asset for WMC because of the convenient and high-quality health care it provides.
Another factor that could have an impact on the UCC at WMC is potential competition from other UCCs and primary health clinics in the area that are currently under construction. Patients will choose the UCC over other clinics in the neighborhood if they have complete confidence in the clinic’s abilities and reputation. Regular patients will receive frequent health reminders from the UCC’s staff to ensure that they do not forget to come in for their regular checkups and appointments.
Patients will be less likely to miss their scheduled checkups as a result of this. In addition, the staff will analyze patients’ perspectives on health care and tailor care to improve patient outcomes and experience, among other things. This will not only assist in increasing patient visits, but it will also assist in increasing patients’ level of trust in the UCC (“Assistance in assisting patients in making informed decisions,” 2014.
Due to the implementation of all of these measures, the UCC will be able to outperform the competition from upcoming UCCs, allowing it to remain a viable asset to WMC in the face of unpredictable environmental conditions. Conclusion The budget for the UCC demonstrates that it will be financially viable for WMC. The team at WMC is working hard to see the initiative through to completion with the active commitment and cooperation of all key stakeholders, as well as the strategies in place to deal with the dynamic environmental forces that will be encountered.
In addition to serving as an additional revenue stream, the UCC is expected to be a financially viable asset that will provide high-quality community health care services in the future. Capella University retains ownership of the copyright. The reproduction and distribution of this document are strictly prohibited. 8 References In the United States, this is known as the Agency for Healthcare Research and Quality (AHRQ) (2015). The six domains of health-care quality are as follows:
AHRQ’s Professionals in Quality and Patient Safety (Quality and Patient Safety) Talking Quality (Talking Quality) Create/SixDomains.html AMN Healthcare is a healthcare organization (2015). Convenient care: The growth and staffing trends in urgent care and retail medicine are both positive. https:// amnhealthcare.com/uploadedFiles/mainsite/content/healthcare industry insights/industry research/AMN% 2015% 20W001 Convenient% 20Care% 20Whitepaper(1).pdf>. The authors, Chang, J. E., and Brundage, S C., and Chokshi, D A., have published a paper in which they discuss their research (2015).
Convenient ambulatory care: its promise, its pitfalls, and its implications for policy The New England Journal of Medicine, volume 373, number 4, pages 382–388. Cigna is a health insurance company (n.d.). Delivering high-quality care to an increasingly diverse population requires cultural competency in health-care delivery. The document is available at https://cigna.com/assets/docs/about-cigna/thn-white-papers/culturalcompetencyinhealthcare-final.pdf (in English). The Economic Policy Institute is a think tank that studies economic policy.
Providing patients with the information they need to make informed decisions. (April of this year, 2014). Patients’ ability to make informed decisions is discussed in detail at https://cmpa-acpm.ca/en/advicepublications/browse-articles/2014/assisting-patients-in-making- informed- decisions
Capella University retains ownership of the copyright. The reproduction and distribution of this document are strictly prohibited. 9 Prybutok GL, Prybutok VR, Qin H, Wang B, Prybutok G L, Prybutok V R, & Wang B (2015). Comparisons of urgent care service providers based on quantitative data. 574–594 in International Journal of Health Care Quality Assurance, vol. 28, no. 6. With a global forecast to 2023, the Urgent Care Center market is segmented into four categories: service (Acute Illness Treatment), ownership (Corporate Owned, Physician Owned, and Hospital Owned), and region. Acute Illness Treatment is the most common service provided by urgent care centers.
(March of this year, 2018). https://marketsandmarkets.com/Market-Reports/urgent-care-center-market197843477.html Urgent care centers are a type of medical facility that provides immediate care. The Bureau of Labor Statistics of the United States (2017). Statistics on the employment of specific occupations. https://www.bls.gov/oes/current/naics4 621400.htm R. Yakobi et al (2017). The impact of urgent care centers on the number of visits to the emergency department. Health Care Current Reviews, Volume 5, Number 5 (3).
http://dx.doi.org/10.4172/2375-4273.1000204 T. Yee, A. E. Lechner, and E. R. Boukus published a paper in which they discuss their research (2013). The explosion of urgent care centers: a cost-effective alternative to the emergency department or a costly convenience? Briefings on current research. Research Gate profile: Tracy Yee’s publication: 257202014 The surge in urgent _care centers emergency department – alternative or costly convenience/links/5750682 008aed9fa2bd531 https://researchgate.net/profile/Tracy Yee/publication/257202014 The surge in urgent _care centers emergency de Comment [A2]: In order for the link to work, the prefix ‘www.’ must be included.
Capella University retains ownership of the copyright. The reproduction and distribution of this document are strictly prohibited. 10 Budget for Proposed Economic Initiative (Appendix 5-Year Budget) The following fiscal years are included: fiscal year 2019 year 1, fiscal year 2020 year 2, fiscal year 2021 year 3, fiscal year 2022 year 4, fiscal year 2023 year 5, fiscal year 2024 year 1. ($) is the total amount. Cash Balance at the Start of the Day 0.00 1,465,820.00 3,024,260.00 4,680,446.00 6,312,389.73 0.00 1,465,820.00 3,024,260.00 4,680,446.00 Loan of 175,000.00 dollars was received. Receipts from operations totaling $175,000.00 Receipts for Patient Services (UCC) 2,730,000.00 2,866,500.00 3,009,825.00 3,160,316.25 3,318,332.06 15,084,973.31 Total Receipts 2,730,000.00 2,866,500.00 3,009,825.00 3,009,825.00 3,009,825.00 3,160,316.25 3,318,332.06 15,084,973.31 270,000.00 2866500.00 3009,825.00 3160,316.25 3318,332.06 15,084,973.31 2,730,000.00 2,866,500.00 3,009,825.00 Operating Payments Staff Salaries 825,000.00 849,750.00 875,242.50 1,023,885.20 1,315,719.80 4,889,597.50 1,023,885.20 1,315,719.80 1,023,885.20 1,023,885.20 Utilities of the Most Fundamental Kind 55,000.00 57,750.00 60,637.50 63,669.38 66,852.84 303,909.72 Insurance 55,000.00 57,750.00 60,637.50 63,669.38 66,852.84 303,909.72 15,000.00 15,000.00 15,000.00 20,000.00 25,000.00 90,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 Payments for Other Operating Expenses 327,600.00 343,980.00 361,179.00 379,237.95 398,199.85 1,810,196.80 327,600.00 343,980.00 361,179.00 379,237.95 398,199.85 Total Operating Payments 1,222,600.00 1,266,480.00 1,312,059.00 1,486,792.52 1,805,772.49 7,093,704.01 1,222,600.00 1,266,480.00 1,312,059.00 1,486,792.52 1,805,772.49 Operating surplus/deficit 1,507,400.00 1,600,020.00 1,697,766.00 1,673,523.73 1,512,559.57 7,991,269.30 Operating surplus/deficit 1,507,400.00 1,600,020.00 1,697,766.00 1,673,523.73 1,512,559.57 7,991,269.30 Payments for non-operational expenses Annual Loan Repayment (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (207,900.00) Total non-operating expenses (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (41,580.00) (207,900.00) Construction, furniture, and equipment are examples of investments (350,000.00) – – – – – – – Cash Surplus/Deficit 1,465,820.00 1,558,440.00 1,656,186.00 1,631,943.73 1,470,979.57 1,465,820.00 1,558,440.00 1,656,186.00 7,783,369.30 Cash Balance at the end of the fiscal year 1,465,820.00 3,024,260.00 4,680,446.00 6,312,389.73 7,783,369.30 7,783,369.30 1,465,820.00 3,024,260.00 4,680,446.00 6,312,389.73 7,783,369.30
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