HCM 302

1. Financial Managementin the Healthcare Industry Week VI HCM 302

2. - Group Project • Class work 30min • - HC Youtube • - Practice Test • - Break-Even Analysis • - Managing the Chaos • - Week VI Outline

3. Group Project 02/23/2012 HCM 302

4. 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 A

5. 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 B

6. 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 Group C

7. 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 Week VI

8. Break-Even Analysis 02/16/2012 HCM 302

9. 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. What is break-even?

11. 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. Fixed Cost

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

13. Break-Even

16. Managing the Chaos 02/23/2012 HCM 302

17. Descent into Chaos(Bridges, W., 2003)

18. Healthcare environment • Rapidly changing • Changes in healthcare are as complex as healthcare itself • Pace at which changes are occurring is increasing

19. 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.

20. 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.

21. Steps to Success • Define a vision • Share the vision • Define clear goals (clinical and revenue-related) • Decide that failure is not an option

22. 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

23. 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

24. Top Level Managers • Must give consistent strong support to the project • Should act based on current information • Avoid making decisions based on personal objectives

25. 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

26. 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

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

28. Expect the Unexpected • There will be setbacks • There will be resistance

29. 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).

30. 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

31. 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

32. 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

33. Measuring Success Post Implementation • Is the value added consistent with the amount of resources expended? • What did the system really cost?

34. 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

35. 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

36. 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.

37. 02/23/2012 HCM 302

41. Optimal Workflow Practice EMR PM • Register • Appointments • Co-Pay • Domain • Charting • Charge Entry • Orders