HCM 302

Financial Management

in the Healthcare Industry

Week VI

WEEK VI OUTLINE

- Group Project Class work 30min

- HC Youtube - Practice Test - Break-Even Analysis - Managing the Chaos -

HCM 302

Group Project02/23/2012

GROUP A

  1- Dana 3- Deja 2-Theresa

4- Nancy   Medical Practice Name: Women’s Specialty Care

  Details : Specialty: OB-GYN # Of Employees: 10 # Of Physicians: 6 # Of PA's :2 # Of MW‘s: 2   # Of Offices: 3 # Org Type: C-Corp  

GROUP B

  1- Diana 3- Hana 2- Devon

4- Cailin   Medical Practice Name: Community Care of New Castle County   Details : Specialty: Family Medicine # Of Employees: 14 # Of Physicians: 9 # Of PA's :3 # Of NP‘s: 3   # Of Offices: 2 # Org Type: LLC  

GROUP C

  1- Natalia 3- Irene 2-Norberto

4- Alyssa   Medical Practice Name: Pediatric Physician Care   Details : Specialty: Pediatric # Of Employees: 10 # Of Physicians: 6 # Of PA's :2 # Of MW‘s: 2   # Of Offices: 3 # Org Type: C-Corp  

WEEK VI

1) Plan for how to grow patient base/how to receive more patients from local PCPs

2) Retention strategy 3) Flow charts for structure of organization 4) Break-Even

A) # of Encounters

HCM 302

Break-Even Analysis02/16/2012

WHAT IS BREAK-EVEN?

The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".

Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point.

FIXED COST

These are costs that are the same regardless of how many items you sell.

All start-up costs, such as rent, insurance and computers, are considered fixed costs.

VARIABLE COST

These are recurring costs that you absorb with each unit/service you produce.

BREAK-EVEN

HCM 302

Managing the Chaos 02/23/2012

DESCENT INTO CHAOS (BRIDGES, W., 2003)

HEALTHCARE ENVIRONMENT

Rapidly changing Changes in healthcare are as complex

as healthcare itself Pace at which changes are occurring is

increasing

TWO CATEGORIES OF CHANGE

First order change- leaves the underlying system relatively unchanged such as when new reports are created

Second order change involves a redefinition or re-conceptualization of the business of an organization and how that business is conducted.

CHALLENGES OF SECOND LEVEL CHANGE

When the challenges of second-level change are not sufficiently anticipated and prepared for it can result in failure of HIT implementation.

STEPS TO SUCCESS

Define a vision Share the vision Define clear goals (clinical and

revenue-related) Decide that failure is not an option

MORE STEPS TO SUCCESS

Establish a clear line of decision support

Adapt as needed along the way Evaluate computer skills of users and

provide support/education

LEADERSHIP AND SUCCESS

Consistency throughout implementation

Establish a sense of urgency Empower others to act on the vision Ability to institutionalize new ways of

doing things within the organization

TOP LEVEL MANAGERS

Must give consistent strong support to the project

Should act based on current information

Avoid making decisions based on personal objectives

FRONT LINE USER ENGAGEMENT

Frontline healthcare providers must be involved from the very outset of the project

They must also be engaged on an ongoing basis

UNDERSTANDING FAILURE

Complete failure- a new system that is either never implemented or implemented and then abandoned

Successful implementation- meets the key goals without experiencing significant undesirable outcomes

Partial failure: more difficult to define since subjectivity enters into the assessment

FAILURE FACTORS

Technical shortcomings Project management shortcomings Organizational issues The continuing information explosion (Lorenzi, N. & Riley, R., 2003)

EXPECT THE UNEXPECTED

There will be setbacks There will be resistance

THE RESISTANCE FACTOR

Any significant HIT project will encounter resistance. The differences lie in the degree of resistance which is met.

In organizations where morale is generally good and where there is a history of having managed change well employees are more open to a proposed system change (Young, 2000).

THE GOOD AND THE BAD OF RESISTANCE

Not useful when it leads to conflict and diverts time and attention from the goals of implementation

Useful when it helps to identify flaws in a system

COMMUNICATION

Keep your ear to the ground throughout the change process

Give front line users a voice Respond to their concerns Distinguish between organizational

noise and real problems

THE COMPETENCE FACTOR

Users go from being experts in whatever system or version they were using before to no longer feeling so competent

Associated stress

MEASURING SUCCESS POST IMPLEMENTATION

Is the value added consistent with the amount of resources expended?

What did the system really cost?

IMPLEMENTATION OF HIT IS A COMPLEX UNDERTAKING

Approach it in a way that minimizes risk and maximizes the potential benefits

Use strategies and methods that will lead to that end

TAKE-AWAY POINTS

Provide consistent, strong leadership Use change management strategies Decide that failure is not an option Get front line users involved from the

very beginning Expect the unexpected & adapt as

needed

ADAPTABILITY

The degree to which organizations are prepared for change and the ability they have to change rapidly and effectively will determine how successful they are at using HIT to meet their organizational objectives.

HCM 302

02/23/2012

Practice

•Register•Appointments•Co-Pay

•Domain•Charting•Charge Entry•Orders

PM

Optimal Workflow

EMR