In this assessment, you will conduct a risk and mitigation analysis and cost-benefit analysis and report on your findings.ScenarioThe senior management of your care setting has reviewed your Executive Brief: Proposal of a New Economic Opportunity and has decided that it has merit. As a result, you have been asked to take a more detailed look at the feasibility and cost-benefit considerations of implementing your proposed economic initiative over the next five years. The senior management is looking for a 3–5-page report that builds a business case for your economic initiative by analyzing ways to mitigate the risks associated with your original proposal and a completed cost-benefit analysis using the Cost-Benefit Analysis Template, linked in the Resources
DirectionsYou have been asked to ensure that your report addresses 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: Business Case for a New Economic Opportunity document, linked in the Resources, to better understand the performance levels that relate to each grading criterion:Part 1: Risk and Mitigation AnalysisComplete the following:Analyze the opportunities and risks relevant to your proposed economic initiative.Propose ethical and culturally sensitive solutions to address the risks associated with your economic initiative to ensure the future security of your care setting.Part 2: Cost-Benefit AnalysisComplete the following:Analyze the costs and benefits of your proposed economic initiative over a five-year time horizon.Propose potential ways to keep costs under control while maximizing the benefits of your economic initiative and ensuring that it remains ethical and culturally equitable.Address Generally Throughout Business CaseComplete the following:Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence you used to support your recommendations throughout your report.Communicate your business case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.Effectively support your report 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 RequirementsYour assessment should meet the following requirements:Length: 3–5 double-spaced, typed pages. Your paper should be succinct yet substantive. Be sure to include a title page and reference list.Your completed Cost-Benefit Analysis Template should be included as an appendix within your final business case submission.APA format: Resources and citations are formatted according to current APA style.Resources: Cite 4–5 authoritative and scholarly resources. Be sure to include specific economic data and support as part of your cited resources.
Competitive Markets, Market Power in Health Care, and Risk Mitigation
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Effective leaders need to objectively evaluate data, consider more than a single perspective on an issue, and propose a reasonable recommendation based upon quantitative and qualitative data. Of significant note is the utility of maintaining a systems-based perspective, balancing near- and long-term organizational interests, and evaluating the economic alternative within the industry or operating environment.
Consider your current or desired future work setting. What are some of the problems, dilemmas, or issues for which economic decisions must be made? Examples of such decisions may be determining optimal staffing ratios, purchasing a new piece of medical capital equipment, hiring a consultant versus using inside talent, or embarking on a large-scale marketing campaign.
When you have been involved in economic decision making in the past, what types of decisions were involved? Did you review only cost data? Were you on a team that evaluated the short- and long-term impact of a decision involving a purchase or investment for a health care organization? If you were, try to recall the decision-making process. One of the most challenging aspects of effective decision making is identifying not only the ideal option, but one that is feasible and realistic given finite organizational resources.
Economic decision making involves consideration of possible alternatives, and weighing risks versus benefits. Examples of decisions that may involve risk assessment are financing the expansion of a new hospital wing, funding a new patient safety team, entering into a joint venture to share services with an industry partner, or launching an innovative clinical initiative using 3D printers to construct pediatric heart valves. Regardless of the economic decision selected, effective health care executives constantly engage in risk assessment. This can be a mixture of informal or formal processes, but it is wise to conduct a detailed risk assessment before embarking upon any major economic decision. The skill of assessing risk is one that is constantly utilized by health care leaders, so this exercise has immediate applicability to the workplace.
Comparative economic analysis (CEA) is quite useful in the health care workplace, especially given the uncertain nature of reimbursement and emerging regulations. Health care leaders must consider a variety of options and assure that the alternatives under consideration have been properly valued for the sake of comparison. Regardless of the comparative economic analysis method or problem—human capital, risk preference, contingent evaluation, or cost-benefit ratio analysis—that you select, you will be able to apply the comparative analysis tools in your workplace setting as well as in your daily life
· Report on risk and mitigation and the costs and benefits of a proposed initiative.
As a master’s-level health care practitioner, you are expected to consider a number of factors when analyzing the feasibility of a new initiative. For example, you need to keep in mind the various types of risk (such as patient safety, physical plant, financial, or reputation), as well as the present and future value of the service line or economic opportunity into which you are investing resources. You also must balance the competing considerations of your ethical and moral responsibility to provide quality care to patients and populations, while also protecting your care setting’s assets and economic viability in the near and long terms.
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: 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.
· Analyze the opportunities and risks relevant to a proposed economic initiative.
· Analyze the costs and benefits of a proposed economic initiative over a five-year time horizon.
· 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 potential ways to keep costs under control while maximizing the benefits of an economic initiative and ensuring that it remains ethical and culturally equitable.
· 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 report.
· 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.
· Propose ethical and culturally sensitive solutions to address the risks associated with an economic initiative to ensure the future security of a care setting.
· 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 case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.
· Effectively support a report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.