13 Jun Sign up! DQ 2-1
1.
Feedback for an organization is beneficial in the way that it provides perspective on how patient care is done. As a healthcare administrator, patient care is highly valued but it is easy to lose hindsight on the importance of technology needed to provide patient care. If there was more of a demand from physicians and clinical staff, then as an administrator listening to the demand is important.
As a healthcare administrator, my goal is to facilitate proper quality of care control, ensure that our facility can run smoothly and overseeing that the organization has all the appropriate funds allocated to allot for the needs of those who work in our organization. To support my physician as well as consider for the greater good in my hospital I would have to consider a few variables to establish if this piece of technology is worth the cost of our company consider the benefits vs the risks. One variable would be the demand which was the physician approaching with his request for this piece of technology. Another variable would be upfront cost as well as return investment. Also, how it affects the workflow impact, can we get patients turnover as well as will our technicians be able to work the machine without issue. “For our purposes, we identify five uses of financial information that may be important in decision making:
1. Evaluating the financial condition of an entity
2. Evaluating stewardship within an entity
3. Assessing the efficiency of operations
4. Assessing the effectiveness of operations
5. Determining the compliance of operation with directives (Cleverly 2018).
“For our purposes, we identify five uses of financial information that may be important in decision making:1. Evaluating the financial condition of an entity2. Evaluating stewardship within an entity3. Assessing the efficiency of operations4. Assessing the effectiveness of operations5. Determining the compliance of operation with directives (Cleverly 2018).”
Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, MA: Jones & Bartlett Learning.
2.
The main purposes behind operating hospital is to provide a service to the community and to generate a positive revenue stream. The proposal from the physician in this case sounds very tempting as it leads us to believe there will be an instant patient boost. However, in order to decide on purchasing the equipment there are several factors that must be taken into consideration. First research into whether the equipment is the best investment for the surrounding community’s needs. Without a need from the community the utilization rate of the equipment may not be enough to break-even on the investment. If the revenue generated is insufficient to cover the cost and operating expenses the investment would only make the physicians practice more convenient at the hospitals expense.
The second factor is consideration on whether the facility can support the needs of the equipment. For example, the proper installation of an MRI suite is three rooms with a combined size of 45’2”x33’10”x 8’9” (Bolenbaugh, 2017). With most hospitals operating at full capacity in terms of space purchasing equipment would mean getting rid of existing equipment. Because of this the hospital would also need to consider to loss of revenue and potential impact on quality care by losing the chosen equipment.
Lastly it would be wise for the hospital take caution in the way it accepts the proposition if it chooses to do so. The Stark Laws writing requirements should be closely examined before allowing the physician to utilize the equipment or hospital space. There would need to be a written agreement between the physician and the hospital stating identifiable services, timeframes, and rate of compensation in order to help avoid violations of the legislation from surfacing (Render, 2017). Furthermore, the anti-kickback statute should also be a factor and carefully reviewed. By having the proposition in writing the hospital can determine the physician’s true intentions and help avoid a situation where it appears the hospital gave a physician preferential treatment in order to obtain clients from a competitor. A mistake here can lead to costly fines in the future, should the matter be misconstrued.
These are just three of the major aspects I would focus on. In examining these three factors its likely additional research questions would arise and should certainly be investigated.
Bolenbaugh, R. (2017, January 4). 1.5T MRI Suite Size Requirements. Retrieved May 23, 2019, fromhttps://info.blockimaging.com/1.5t-mri-suite-size-requirements
Render, H. (2017, March 28). Federal District Court Opines on Revised Stark Law Writing Requirement | Hall Render. Retrieved May 23, 2019, from https://www.hallrender.com/2017/03/28/federal-district-court-opines-revised-stark-law-writing-requirement/
3.
Technology is constantly changing in health care allowing for more efficient, safer, and higher quality of care.While purchasing a new piece of technology that a competitor has may bring over this physician to the hospital with his patients, there are many other aspects to the purchase that need to be evaluated.
When looking at this request, there are the financial features of solvency as well as cost that need to be taken into account. There needs to be an evaluation to see if the new technology will show a positive rate of return in the long run, (Cleverley & Cleverley, 2018). There should also be a cost-benefit analysis performed to evaluate the purchase and then also evaluate alternative options. It is important to weigh benefits and compare them with cost, (Cleverley & Cleverley, 2018). There could also be other options such as leasing the technology. With a lease, the IRS may consider this a tax-deductible overhead expense, the hospital does not have to put a large sum of money down upfront, as the facility grows a lease may upgrade or add to the technology, and there can be flexible end of term options so that the hospital can either get rid of the technology or extend the use, (Daugherty, 2011). If it is a purchase, are there warranties and upgrades for the technology included? Is training for staff included? All of this needs to be evaluated.
It is important to look at the hospital that the technology is being used at now versus the hospital the physician is requesting the technology to be bought at. Every hospital serves different populations, treats different conditions, and focuses on certain medical treatments. Would this product help the patients being served? Would other physicians use the technology also? For example, if this product is for cardiac cases but the hospital does not treat many cardiac conditions or have many cardiologists on staff, this technology may be an increase in cost but not provide a return on it. If the plan of the hospital is to increase cardiac cases, then this may be a beneficial expense.
Cleverley, W. O., & Cleverley, J. O. (2018). Essentials of health care finance. Burlington, MA: Jones & Bartlett Learning.
Daugherty, S. (2011). 12 Benefits of Leasing Equipment. Retrieved from https://www.healthleadersmedia.com/finance/12-benefits-leasing-equipment?page=0%2C1
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