Implementation Plan for a New Economic Opportunity

Implementation Plan for a New Economic Opportunity

OVERVIEW

Create a detailed implementation plan for an economic initiative.

As a master’s-level health care practitioner you may be expected to create budget and implementation plans to ensure that economic opportunities for the organization are rolled out successfully and can be sustained over multiple years. Additionally, it is important to be able to envision how an economic initiative could be used for different contexts and purposes to keep the investment a viable and positive asset to your organization or care setting.

Note: Complete the assessments in this course in the order in which they are presented.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 1: Competency 1: Analyze the effects of financial and economic factors (such as cost-benefit, supply and demand, return on investment, and risks) in a health care system on patient care, services offered, and organizational structures and operation.
  • Create a budget for relevant expected costs and earnings or benefits over the first five years of a proposed economic initiative.
  • Analyze how a proposed initiative, once implemented, may impact aspects of a care setting and ways in which negative impacts could be mitigated.
• Competency 2: Develop ethical and culturally equitable solutions to economic problems within a health care organization in an effort to improve the quality of care and services offered.
  • Propose a plan to roll out an economic initiative that will enable a care setting to successfully implement it in an ethical and culturally equitable way that will ensure the initiative achieves quality or service improvements.
• Competency 3: Justify the qualitative and quantitative information used to guide economic decision making to stakeholders and colleagues.
  • Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a plan.
• Competency 4: Develop ethical and culturally equitable economic strategies to address dynamic environmental forces and ensure the future security of an organization’s resources and its ability to provide quality care.
  • Explain strategies that have been integrated into a proposed economic initiative that will ensure it can remain a viable asset to a care setting in the face of dynamic environmental forces.
• Competency 5: Apply various communication methods in order to clearly, effectively, and efficiently relate information to stakeholders and colleagues related to economic data, findings, and strategies.
  • Communicate a business and implementation plan in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.
  • Effectively support a plan and recommendations with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Assessment Instructions:

In this assessment, you will plan for all pertinent details involved in implementing a new initiative.

Scenario

The senior management members have sent you their thanks and notes on your feasibility study for your proposed economic initiative. They have determined that your proposal has the potential to benefit the organization in both the short and long term. The last step in this process is to complete a thorough implementation plan for your proposed initiative. This plan will need to include a budget of relevant expected material, staffing, and capital costs over the first five years of the initiative (see the Resources for some examples and guides about budget planning), as well as projected earnings from the initiative for the care setting. You must also include a plan and timeline for rolling the initiative out, an analysis of how it may impact other aspects of the care setting, an explanation how it can remain viable in the face of environmental changes, and sufficient relevant supporting evidence.

Directions

In your 6–10-page plan, you have been asked to be sure to address the following. Note: The bullet points below correspond to grading criteria in the scoring guide. Be sure your work is, at minimum, addressing each of the bullets below. You may also want to read the scoring guide and the Guiding Questions: Implementation Plan for a New Economic Opportunity document, linked in the Resources, to better understand the performance levels that relate to each grading criterion:

• Create a budget for relevant expected costs and earnings or benefits over the first five years of a proposed economic initiative.
• Propose a plan to roll out your economic initiative that will enable your care setting to successfully implement it in an ethical and culturally equitable way that will ensure achievement of quality or service improvements.
• Analyze how your proposed initiative, once implemented, may impact other aspects of your care setting and ways in which negative impacts could be mitigated.
• Explain strategies you have integrated into your proposed economic initiative that will ensure it can remain a viable asset to your care setting in the face of dynamic environmental forces.
• Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence you used to support your recommendations throughout your plan.
• Communicate your business and implementation plan in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.
• Effectively support your plan and recommendations with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Example Assessment: You may use the assessment example, linked in the Assessment Example section of the Resources, to give you an idea of what a Proficient or higher rating on the scoring guide would look like.

Additional Requirements

Your assessment should meet the following requirements:

• Length: 6–10 double-spaced, typed pages (not including title page and reference list). Your paper should be succinct yet substantive.
  • Be sure to include a separate title page and reference list.
  • Your completed budget plan should be included as an appendix within your final submission.
• APA format: Resources and citations are formatted according to current APA style.
• Resources: Cite 3–5 authoritative and scholarly resources. Be sure to include specific economic data and support as part of your cited resources.

Questions to Consider:

As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.

• Do you think that cost shifting is a fair practice, or that it should it be legally banned?
• Why would a change in a hospital’s variable costs change the hospital’s profit-maximizing price?
• How do ethics and economic decision making come together when addressing health care issues?
• What is the highest-impact facet of health care economics that relates to your current or desired leadership role? What action steps and resources might you use to assure objective and ethical economic decision making in that role?

SAMPLE ANSWER

Implementation Plan for a New Economic Opportunity

Introduction

Mayo clinic aims to develop an Express Care Model to provide urgent care to patients. The Express Care Model will help to provide immediate healthcare services in populated regions. With the shortage of healthcare practitioners, long queues often develop due to many patients seeking healthcare services. The economic initiative is to develop a center that would help the community get quality healthcare services, reduce overcrowding, offer quick and effective care, and reduce wait times among patients who require urgent care (American College of Emergency Physicians [ACEP], n.d.). The center will be able to offer quick, efficient, and effective care and cater for all patients in order to reduce health disparities in the region. The project is deemed profitable and feasible after conducting the environmental and economic analysis of the project. Therefore, the implementation plan will outline the project by focusing on the budget plan, the timeline of the project, and the impact of the project on Mayo clinic.

Proposed Budget Plan for Express Care Model at Mayo Clinic

The economic initiative needs to be economic viable in order to be implemented and be sustainable. The economic opportunity includes the development of a startup budget to help plan the revenues that Mayo clinic will get after five years. The budget will allow the hospital make critical decisions regarding the size of the facility, the number of employees, the number of equipment needed, and the targeted customers who will be served. The operational budget will be calculated in five years, considering the influx of patients, management cost, and employees’ salaries.

Implementation Plan for a New Economic Opportunity

Costs will be regulated by maintaining adequate number of employee and management in-care delivery. Other expenses will include overhead costs that are not linked to the delivery of care, but affect the total cost of running the clinic. Other significant expenses include the essential utilities, insurance, supplies, equipment replacement and repairs, and building maintenance. Tracking the maintenance records and logs will allow Mayo clinic to reduce sudden repairs and plan in case equipment need repair. The utilities will be reviewed by the management team every year to ensure the clinic is running efficiently and excessive spending is controlled. Additionally, managing the insurance, internet and phone cost throughout the five years will be critical. Running costs will also be reduced by conducting regular monitoring of daily operations. To cut running costs, donated supplies will be accepted and office supplies will be reused if possible. Overall, the aim would be to ensure that facility has adequate equipment and facilities, and the environment is conducive for proper delivery of health care services.

Implementation Plan for a New Economic Opportunity

It is estimated that the facility will cater to about 70 patients every day, with about $135 for each visit. Therefore, the profit to be generated in the first year is estimated to be approximately $1,275,046. However, it is estimated that company revenue will increase gradually by about 5 percent every year. The project estimates will be broken down into operational cost, insurance, utilities, and employee salaries.

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The significant employees that will be part of the project include receptionist or patient representative, a supporting Physician Assistant (PA) and full-time physicians. Their salaries will be based on the guidelines provided by the U.S. Department of Labor (2019), which require receptionist or patient representative to earn about $25,000, a medical assistant who will earn about $30,000, Physician Assistant (PA) and a full-time physician who will be paid about $230,000. According to Qin, Prybutok, Prybutok, and Wang (2015), the growth of salaries is estimated to be 2% annually, and the Mayo clinic project aims to honor and follow the guidelines by improving employee’s salary every year. Besides, it is estimated that the facility will require additional employees due to the increase influx of patients and to ensure that the nurse-patient ration is at the recommended rate (Economic Policy Institute, 2018). The operating expenses are considered to be about 12% of the annual revenue based on the analysis of Mayo clinic’s recent trends in its financial statement.

Implementation Plan for a New Economic Opportunity

The expected total capital costs are projected to be $380,000. Half of this budget will be funded by the organization and the rest will be funded by a bank loan. The loan will need to be set at $190,000 to correctly fund this operation. This is also under the assumption that the loan tenure is five years with an interest rate of 7% per year. The loan payment is expected to be $45,520 per year. As laid out in the budget plan, the express care clinic is expected to earn a positive in surplus in the first five years of operation. The cash surplus, as per detailed cost plan, shows that the surplus will decrease during the fourth and fifth year due to increased staffing needs and new hires. The cash surplus is estimated to be about $$8,301,030 after five years.

Rolling out of Economic Initiative

One of the initial steps to rolling out this economic initiative is to develop a timeline for the public. It is estimated that it will take about 2-3 months for the senior management team to approve the budget and changes along with the bank loan to be processed. Construction on the site will be a complete remodel. This is estimated to take about two months, from December 2019 to January 2020. After a detailed discussion with the project team, it was determined that the grand opening for the Mayo Clinic care facility would be February 2020.

With the active participation from the stakeholders during the designing and developmental stages, the facility will be able to ensure proper safety requirements and positive patient experiences at the health care center. The board at Mayo Clinic and the senior management including doctors, nurses, and supporting staff are just a few of the relevant participants who are part of the internal stakeholders. To successfully implement this economic initiative, it is essential to collaborate with the stakeholders to ensure proper implementation. During the implementation, stakeholder’s feedback and concerns will be listened to and taken into consideration for changes. Meetings will be held monthly to discuss the progress of the project with the stakeholders.

Implementation Plan for a New Economic Opportunity

Mayo Clinic continues to strive to improve patient outcomes and experiences. The healthcare institution will focus its efforts and attention on six key areas that would ensure quality healthcare. These areas include efficiency, safety, equity, effectiveness, patient-centered care, and time management (Agency for Healthcare Research and Quality, 2015). As the development of the care facility continues to be implemented, the internal stakeholders will continually assess the project for these six key factors to ensure the mission of Mayo Clinic is upheld. This will help the organization sustain and achieve the long and short-term goals.

The critical external stakeholders will be patients and the public. Patients’ feedback on effective delivery of care and if the services are patient-centered is essential to determine the project success. If care is optimal, patients are more likely to return and refer new patients to the clinic. Encouraging compassionate, ethical and culturally sensitive care along with effective communication will help patients feel satisfied with the services provided in the clinic (Agency for Healthcare Research and Quality, 2015). To further support the providers and staff at the facility, the clinic will initiate training to ensure diversity in terms of gender, age, color, religion, and culture. The physicians will be taught how to treat patients without bias (Cigna, n.d.). Mayo clinic ensures diversity in the workplace and also encourages its employees to continue with their education and training in order to serve patients better. In order to show that the care center appreciates cultural diversity, the nurses will implement different ethical and culturally sensitive approaches in healthcare delivery.

Implementation Plan for a New Economic Opportunity

Revenues from the emergency department will be critical in providing additional revenue for the Mayo clinic. The local ER departments would be able to get more patients requiring emergency treatment. Many more patients would be referred to the facility. Providing treatment to the locals would also help develop trust between the clinic and the community. The Mayo Clinic will be able to handle both minor and critical injuries among patients. This means that the clinic will be able to offer more assistance to patients to guarantee positive outcomes. Such aspects will set the hospital apart from other healthcare institution that provides emergency care or similar services to patients.  Mayo Clinic will ensure that patients are provided with adequate and quality care in every visit. Improving patients’ outcomes leads to patient satisfaction and loyalty, and patients would refer or revisit the clinic when they require healthcare services.

Strategic Ways to Deal with Environmental Forces

Various environmental factors can influence the operation of the new Mayo Clinic facility. The most common issue is the increasing number of facilities offering emergency services around the city. This would lead to increased competition. This might affect the projection of revenue in the health care facility along with making it more challenging to recruit staff. This can also make the clinic and the new facility the best option for patients since it would be more equipped to handle more immediate healthcare services. Most emergency departments are often staffed with emergency care providers who are more familiar with testing requirements, medications and timely care (Chang et al., 2015). This would provide express care patients a higher level of care (Chang et al., 2015). Mayo express care clinic will build trust with the community which will not only help the residents seek the care they need, but also help with the competition with other urgent care providers. This will help in maintaining revenue.

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Mayo clinic needs to source finances with the help of the organization’s leadership and to involve stakeholders before the initiation of the project.  Having equipment and facilities that improve patient health would be necessary for ensuring the project is successful. The model of care at the facility can pose an issue when many patients come to receive care at the facility while the resources might not be enough. Nearly 71% of emergency physicians reported seeing patients daily that had been referred to the emergency department from urgent care facilities that were not equipped to care for them. This can pose a challenge for the management when it is trying to save on the costs of operation and at the same time build trust with the community.

Changes in misdiagnosis will be a risk because of the high number of patients being cared for on the same day by physicians. This can cause nurse burnout issues and medical errors that may put patients’ lives at risk. The clinic will develop critical interventions to reduce the problems of misdiagnosis. Employing more nurses will be valuable in improving the nurse-to-patient ratio. Nurses and physicians should be enough to ensure they have enough time to care for patients. Specialized training is also critical to ensure nurses do not cause medical errors such as misdiagnosis. Mistakes lead to critical ethical and legal issues that may put the organization at risk. Nurses and physicians will also be advised to take breaks in the cause of treatment, report errors, and work for few hours to ensure instances of misdiagnosis are reduced completely.

Implementation Plan for a New Economic Opportunity

Conclusion

The Mayo Clinic budget outline guarantees that the economic initiative is not only smart but profitable. With the participation of the internal and external stakeholders, this economic initiative with be able to face all challenges and dynamic environmental factors. With the implementation of this project, the facility can bring safe and effective care to the surrounding communities. It is believed that the care model used will not only provide additional revenue for the organization, but will also provide relief for the nearby emergency rooms along with aiding the population. The Mayo Clinic will also provide patients with regular screening and treatment to patient who needs emergency care to help reduce the burden of healthcare provision and overcrowding of patients in ER departments. The initiative would require costs monitoring within the five-year period. The discount rate, capital costs, cost of operation, utility cost, regulatory control costs, overhead costs, would be critical in ensuring the efficiency and control of excessive spending. The main risk of the project includes the lack of healthcare facilities to ensure the provision of quality care. Having enough equipment and facilities to improve patient health would be necessary for ensuring the project is successful. Thus, Mayo Clinic will ensure that patients are provided with adequate and quality care for in visit. Improving patents outcome will leads to patient satisfaction and loyalty.

References

Agency for Healthcare Research and Quality. (2015). The six domains of health care quality. Retrieved from https://ahrq.gov/professionals/quality-patientsafety/talkingquality/create/sixdomains.html

American College of Emergency Physicians [ACEP] (n.d.). Urgent Care. Retrieved from http://newsroom.acep.org/2009-01-04-urgent-care-fact-sheet

Chang, J. E., Brundage, S. C., &Chokshi, D. A. (2015). Convenient ambulatory care — Promise, pitfalls, and policy. The New England Journal of Medicine, 373(4), 382–388. Doi: 10.1056/NEJMhpr1503336

Cigna. (n.d.). Cultural competency in health care: Delivering quality care to an increasingly diverse population. Retrieved from https://cigna.com/assets/docs/about-cigna/thn-whitepapers/cultural-competency-in-health-care-final.pdf

Economic Policy Institute. (2018). Nominal wage tracker. Retrieved from https://epi.org/nominal-wage-tracker/

US Department of Labor (2019). Occupational Employment Statistics. Retrieved from https://www.bls.gov/oes/oes_emp.htm

Appendix 1:  5-Year Budget for Proposed Economic Initiative

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