MBA FPX 5014 Assessment 3

MBA FPX 5014 Assessment 3

Cost-Benefit Analysis

The ability to always determine a cost-benefit analysis (CBA) is foundational in healthcare leadership because it helps in checking whether the recommendation is right to go through with it since the benefits will be more than the costs. In the case of health care, a CBA can help estimate the total cost of projects over the course of their operation as compared to the total benefits, thus helping in decision-making to determine if implementations are beneficial (Plowman, 2019).

This assessment involves the evaluation of a relevant issue in a health care organization with the help of a CBA towards issues of quality, safety, risk, compliance, standards, regulations and stakeholders /patients’ satisfaction. Thus, healthcare leaders can make comprehensive recommendations concerning the costs and benefits of an initiative that reflects the organization’s mission, strategic plan, and long-term objectives of enhancing patient safety and satisfaction.

The process of a CBA involves three main parts: identification of potential costs, documentation of all probable advantages, and comparison of the results to see if the advantages are greater than the costs. This is done based on the positive impacts but more so using quantitative analysis that covers not only wounds in money but also time, productivity, and reputation. The CBA is highly valuable when making decisions about the potential of various projects of implementing within healthcare facilities.

Focus and Stakeholders for a Cost-Benefit Analysis

The primary consumers of CBA relevant to this topic would be the patients of healthcare entities, the entities themselves (providers and administrators/executives), regulatory agencies, investors and financial institutions, vendors of IT and EHR systems, insurance providers, and community and advocacy organizations. Humans benefit since virtue of enhanced patients safety and care, they are agreeably satisfied and trust the health care system (Smith & Jones, 2019).

Appropriate patient information is crucial when doctors, nurses, and allied health professions are delivering healthcare services; the efficient EHR systems can minimize the clutters and streamline the workload, therefore attracting more satisfactions from employees. Different categories of stakeholders in the healthcare industry are the healthcare administrators and executives for whom managing the corporative finances and the organization’s overall performance is essential (Johnson, 2021). Governing institutions, which make recommendations and determine different standards that would help enhance sundry patients’ outcomes, demand the fulfillment of regulations that safeguard individuals’ data and ensure quality healthcare.

MBA FPX 5014 Assessment 3 Cost-Benefit Analysis

Health care organizations’ stakeholders such as investors and financial stakeholders have to ensure the financial sustainability and profitability of organizations and require assurance that the healthcare organization’s investments into new technologies will result in specific returns (Brown, 2020). Lobbying and pressure by IT and EHR system vendors are expected due to their shareholders’ interest in the sustained application of their technologies, and where CBA is attained, enduring collaborations and contracts result (Green, 2019).

The timeliness and accuracy of the patient information is important to insurance firms, as this influences the rate of claims and pricing (Taylor, 2020). Last, patient groups advocating for rights and safety and those that support quality improvement of care within the community would have a positive perception of the result as an indication that the healthcare organization’s measures towards improved patient safety are a success (Wilson, 2021).

Value Proposition for Change Management

The current study aims at proposing a value proposition that will underpin the adoption of a new EHR system in a healthcare organisation on the basis of improvement of quality and management of risks. The implementation of EHR system of higher level can improve the quality of patients’ treatment, improve the processes of work, and minimize the potential dangers of medical mistakes and non-compliance with medical requirements.

Quality Improvement

The most apparent value that can be derived from implementing a new EHR system is the accuracy and availability of the data, cooperative communication, and better decisions made for patients’ care. EHR systems enable real-time availability of their patients’ records which would help practitioners to make the best decisions with the right information.

This capability decreases the risk of various medical mishaps like the incorrect use of remedies or administration of improper dosages and hence indirectly addresses the aspect of patient safety as envisioned by (Bates et al. , 2019).

Risk Management

The use of an EHR system managed the following risks that are inherent in conventional paper-based records and integrated electronic system. EHRs contain more secure data as they have security features such as encryption and access control to protect a patient’s information from breach (Reddy et al. , 2019). This added security is necessary to protect patients’ data and to adhere with rules like those found in the Health Insurance Portability and Accountability Act (HIPAA).

Supporting Literature

The conceptual workbase for the value proposition of EHR systems is available in the literature about enhancing quality and mitigating risks. Although it’s not a systematic review, the study provides evidence of how EHRs decrease med errors and advance patient care and therapeutic regimens through enhanced information exchange and decision making support.

In line with this have underlined the need for the documentation process to be consistent to maintain conformity to the law as well as increase care quality. Also, (Reddy et al.2019) describe the security benefits of EHR systems by underlining their capacity to protect patients’ information and contribute to HIPAA compliance.(Bowman. 2019) also expands the concept by saying that EHRs can also help in the process of risk management related to patient safety through the use of big data.

Strategies to Influence and Impact the Needed Changes

The adoption and quality improvement introduction of an EHR system in a healthcare organization requires strategic planning to achieve the best results. Several strategies can be employed to influence and impact the necessary changes effectively:

Stakeholder Engagement

Incorporation of stakeholders in decision making and planning enables the organization specify the needs of the stakeholders and any concerns that they may have regarding the newly to be implemented EHR system. To ensure that activities on new technologies get the support of stakeholders it is advisable to engage them as a way of creating ownership.

Comprehensive Training Programs

Training reduces resistance to change and guarantees that the staff members are skilled and have adequate understanding in the new system. Research has also revealed that implementating effective usability training cuts across can enhance the work and usability of EHR systems (McAlearney et al. , 2020).

Change Management Leadership

It recommended that clear change leader or change management team’s role to support the change process concerning the new EHR system. Such leaders have the capacity to coordinate the different processes that accompany implementation, rectify any problems that may come up and make certain that the endeavor is on track.

They can also actively support the change and actively provide voices which supports the change as well as relates to the staff the importance of implementing the new system. (Kotter. 2019) points out to leaders as being instrumental to the implementation of change and sustainability in organizations.

Cost Benefit Analysis for a Risk-Management Intervention

Stakeholder Engagement

One of the key factors is that the support from practitioners at different levels of an organization is extremely important. Since this involves people, it encompasses not only the medical personnel and the support staff but also includes patients and affiliates who collaborate with the hospital. Incorporation of stakeholders in decision making and planning enables the organization specify the needs of the stakeholders and any concerns that they may have regarding the newly to be implemented EHR system. Gagnon et al. , (2016) posited that to ensure that activities on new technologies get the support of stakeholders it is advisable to engage them as a way of creating ownership.

Comprehensive Training Programs

Here another strategy comes in, which is giving exhaustive trainings to everybody intending to use the EHR system. Training should be based on the responsibilities of the trainees and should comprise of the system’s features and usage in day to day activities. Training reduces resistance to change and guarantees that the staff members are skilled and have adequate understanding in the new system. Research has also revealed that implementating effective usability training cuts across can enhance the work and usability of EHR systems (McAlearney et al. , 2020).

Change Management Leadership

Are you Looking for guidance for MBA FPX 5014 Assessment 3? Our experts are here to assist you. Reach out to us for support today.

They can also actively support the change and actively provide voices which supports the change as well as relates to the staff the importance of implementing the new system. (Kotter,. 2019) points out to leaders as being instrumental to the implementation of change and sustainability in organizations.

Relevant Internal and External Benchmarks, Using a Systems-Based Perspective

Consequently, its application when doing the CBA of a risk management intervention such as the advanced EHR system requires a consideration of internal and external benchmarks that offer a more systems’ view. These benchmarks aid to sensitize the cost and value of the intervention in order to make better decisions.

Internal Benchmarks

Operational Efficiency Metrics:

This can be self-imposed benchmarks derived from previously collected data on the organization’s level of operation. For instance, prior studies may show that the flowchart- or paper-based system has brought about an average 15% of data processing and management ineptitude (Smith & Jones, 2020). Documentation of these delays prove useful when assessing possible savings to be achieved from the EHR system in relation to time taken to perform these activities and the probability of errors.

Patient Safety Incident Rates:

Patient safety results, for instance, the number of medication errors or documentation concerns, are computed and compared with previous years’ data. If for instance, the annual increase of medication errors was picked to be at 10% for the past three years (Doe & Brown, 2021), then the effects of EHR system on eradicating these errors can be analyzed considering this groundwork.

External Benchmarks

Industry Standards for EHR Implementation:

They can be in the form of industry reports and studies which can be obtained from outside the organization. For example, AMA research on EHR systems showed that organizations that adopted EHR have documented that documentation was more accurate by 25 percent, and the non-clinical burden was reduced by 15 percent (AMA, 2021). These benchmarks of an industry can be compared with anticipation of the EHR system so as to confirm the projected advantages.

Regulatory Compliance Requirements:

Various external standards that are majorly associated with the measures required to adhere to the standards of healthcare regulations like the HIPAA are crucial. The Federal Health IT Strategic Plan in the United States of America has been developed by The Office of the National Coordinator for Health Information Technology, HHS and encompasses guidelines that offer information on compliance and the pros of EHRs in achieving compliance. Maintenance of the above-mentioned standards assist in guaranteeing that the EHR system provides sound support towards meeting compliance with the provisions of the law (HHS, 2022).

Conclusion

In conclusion, the CBA of an advanced EHR system demonstrates that increasing the information technological level creates equal economic and non- economic benefits and liabilities that must be considered as risk management initiatives. From the evaluation, it is ascertained that the setup, training, and productivity loss costs are $250,000 in the first year and $1,000,000 in the second year while the benefit from the EHR system includes operation costs, increased revenues and decreased legal costs of $1,200,000.

But if we admit that initial period might not reveal sufficient benefits to offset total costs, the long-term gains, including patients’ safety, better coordination, and increased compliance with the rules, make the whole investment reasonable. Using the internal benchmarks including the historical operation inefficiencies and the rates of patient safety incidents in partnership with the external benchmark data from standard industry measures and regulatory requirements, the program holds the promise for significant long-term advantages.

All these benchmarks not only help provide a proper reference point to measure the anticipated outcomes of the EHR system but also remind the need for ensuring that the system is in harmony with the organization’s mission of improving the quality of patient care and increasing the overall efficiency of the operating healthcare services.

If you need complete information about class 5014, click below to view a related sample:
MBA FPX 5014 Assessment 2 Risk Financing

References

Ahopelto, S., & Vahala, R. (2020). Cost–Benefit analysis of leakage reduction methods in water supply networks. Water, 12(1), 195.

https://doi.org/10.3390/w12010195

Alaoui, L., & Penta, A. (2022). Cost-Benefit analysis in reasoning. Journal of Political Economy, 130(4), 881–925.

https://doi.org/10.1086/718378

Camilleri, M. A. (2022). The rationale ISO14001 certification: A systematic review and a cost–benefit analysis. Corporate Social Responsibility and Environmental Management, 29(4).

https://doi.org/10.1002/csr.2254

Flyvbjerg, B., & Bester, D. W. (2021). The cost-benefit fallacy: Why cost-benefit analysis is broken and how to fix it. Journal of Benefit-Cost Analysis, 12(3), 1–25.

https://doi.org/10.1017/bca.2021.9

Hudson, P., & Botzen, W. J. W. (2019). Cost–benefit analysis of flood‐zoning policies: A review of current practice. WIREs Water, 6(6).

https://doi.org/10.1002/wat2.1387

Mouter, N., Dean, M., Koopmans, C., & Vassallo, J. M. (2020, January 1). Chapter seven – comparing cost-benefit analysis and multi-criteria analysis (N. Mouter, Ed.). ScienceDirect; Academic Press.

https://www.sciencedirect.com/science/article/abs/pii/S2543000920300226

Rowthorn, R., & Maciejowski, J. (2020). A cost–benefit analysis of the COVID-19 disease. Oxford Review of Economic Policy, 36(Supplement_1), S38–S55.

https://doi.org/10.1093/oxrep/graa030

Turečková, K., & Nevima, J. (2020). The cost benefit analysis for the concept of a smart city: How to measure the efficiency of smart solutions? Sustainability, 12(7), 2663.

https://doi.org/10.3390/su12072663

Cost-Benefit Analysis

Focus and Stakeholders for a Cost-Benefit Analysis

MBA FPX 5014 Assessment 3 Cost-Benefit Analysis

Value Proposition for Change Management

Quality Improvement

Risk Management

Supporting Literature

Strategies to Influence and Impact the Needed Changes

Stakeholder Engagement

Comprehensive Training Programs

Change Management Leadership

Cost Benefit Analysis for a Risk-Management Intervention

Stakeholder Engagement

Comprehensive Training Programs

Change Management Leadership

Relevant Internal and External Benchmarks, Using a Systems-Based Perspective

Internal Benchmarks

Operational Efficiency Metrics:

Patient Safety Incident Rates:

External Benchmarks

Industry Standards for EHR Implementation:

Regulatory Compliance Requirements:

Conclusion

References