Description
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.
- 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.
- Competency 3: Justify the qualitative and quantitative information used to guide economic decision making to stakeholders and colleagues.
- 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.
- 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.
- 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.
- 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.
- Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a plan.
- 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.
- 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.
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.
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 profitmaximizing 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?
Assignment Instruction
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.
Running head: IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
Implementation Plan for a New Economic Opportunity
Learner’s Name
Capella University
Health Care Economics and Decision Making
Implementation Plan for a New Economic Opportunity
December, 2017
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
1
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
2
Implementation Plan for a New Economic Opportunity
The economic initiative proposed to the senior management of Whilborne Medical
Center (WMC) is setting up an urgent care center (UCC) on WMC’s premises. A UCC is a
health care facility that offers immediate care for injuries and illnesses that are not lifethreatening (Yee, Lechner, & Boukus, 2013). The UCC at WMC will aim to deliver safe, timely,
patient-centered, efficient, and effective health care to the community as well as attempt to
address health inequalities in the community.
An economic and environmental analysis was conducted to determine the feasibility of
setting up the UCC, and a business plan was presented to the senior management of WMC. The
management believes that this initiative has the potential to benefit the organization in the short
and long term. With this in view, an implementation plan for setting up the UCC has been
prepared. The implementation plan includes a 5-year budget for the UCC, a timeline for rolling
out the UCC, an analysis of how the UCC might impact WMC, and an explanation of how WMC
should deal with dynamic environmental forces.
Budget for the Proposed Urgent Care Center
A budget has been prepared to show the projected revenue and the expenses that the UCC
expects to incur over a 5-year period following the completion of its construction. The budget
has been created based on the assumption that construction of the UCC will be completed by the
end of 2018. Therefore, the budget plan contains revenue and expenditure details for the first 5
years of operation, from 2019 to 2023.
Revenue per annum over a 5-year period has been calculated by multiplying the expected
patient volume by average consultation charges. It is estimated that around 357 patients will visit
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
3
the UCC per week and around $156 will be charged per patient per visit (AMN Healthcare,
2015; Yakobi, 2017). Thus, the revenue generated during the first year of operation is expected
to be around $2,730,000. The UCC’s revenue is expected to increase by 5.3% annually (“Urgent
Care Center Market,” 2018). Operating expenses for the UCC will comprise staff salaries, basic
utilities, insurance, and other operating expenses (such as administrative and marketing costs).
Staff salaries for the first three years include the salaries of a full-time physician
($232,000), a nurse practitioner ($112,000), a medical assistant ($35,000), and a medical
receptionist ($32,000) (U.S. Bureau of Labor Statistics, 2017). However, in years four and five,
new staff will be recruited to manage the increased number of patients. The new staff will
comprise a full-time nurse practitioner and a full-time physician, whose salaries will be
calculated taking into consideration the 2.7% per annum estimated actual growth rate of
employees’ salaries (Economic Policy Institute, 2018). Expenditure on basic utilities is assumed
to increase by 5% each year. Insurance expenses are assumed to increase in the fourth and fifth
years of operation owing to recruitment of two staff members. Other operating expenses are
assumed to be 12% of annual revenue based on trends observed in WMC’s financial statements.
The total expected capital cost for the project is $350,000. One half of this cost will be
funded through WMC’s reserves, and a bank loan will be arranged to fund the other half.
Therefore, WMC will need to take a loan of $175,000 to fund this economic initiative. Assuming
that the loan tenure is 5 years and the interest rate is 7% per annum, the loan repayment is
expected to be $41,580 per annum.
As per the budget, the UCC will earn a cash surplus during the first 5 years. The cash
surplus generated in the fourth and fifth years of operation may be lower than the third year
owing to recruitment of staff members in these years. The total cash surplus in the first 5 years is
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
Comment [A1]: Great job thinking ahead!
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
4
estimated at $7,783,369.30 (see Appendix for more information on the 5-year budget for the
proposed economic initiative).
Rolling out the Economic Initiative
The first step in the implementation plan is to set a timeline to roll out the UCC to the
public. It is assumed that it will take around 2 months for WMC senior management to approve
the project and for a bank to approve the loan. Considering that construction of the UCC will
take around 7 months, the process is scheduled to begin in June 2018 and is expected to be
completed by December 2018. After discussing with WMC’s senior management, the plan is to
have the UCC fully operational from the first month of 2019.
Active engagement and participation by stakeholders can ensure better clinical outcomes
and patient experience in an urgent care setting. The board of directors of WMC and the senior
management, the physicians, the nurses, and other staff members of WMC are some of the
relevant internal stakeholders of this economic initiative. For successful implementation of the
plan, it is crucial to collaborate with all internal stakeholders to obtain their inputs during the
initial stages of implementation and decision-making. Meetings will be held with the
stakeholders on a regular basis to discuss the progress of the UCC and devise ways to improve
its health care services.
WMC has always strived to focus on the six areas of health care quality stated by the
Institute of Medicine (IOM), namely timeliness, safety, patient-centeredness, efficiency, equity,
and effectiveness (Agency for Healthcare Research and Quality, 2015). It will be communicated
to all internal stakeholders that the UCC will also focus on these six areas and that setting up the
UCC will take WMC a step forward toward accomplishing its vision of serving the community.
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
5
In order to make this initiative sustainable, the staff working at the UCC will be encouraged to
keep WMC’s vision in mind while trying to meet their short- and long-term goals.
Patients are the key external stakeholders in the health care business. If patients receive
quick and timely care from excellent service providers, they will be encouraged to visit again and
refer new patients to the UCC. Being compassionate with patients, dealing with them in an
ethical and culturally sensitive manner, and communicating medical information effectively will
encourage patient loyalty while also ensuring that they adhere to their treatment plan (“Helping
patients make informed decisions,” 2014). The resultant increase in patient flow and goodwill
will help the UCC become a successful and sustainable venture.
To ensure that the rollout of the center is done in an ethical and culturally sensitive
manner, the UCC will follow the principles of the American Academy of Urgent Care Medicine,
which includes not discriminating against patients on the basis of gender, age, color, religion,
culture, disability, or other characteristics (Agency for Healthcare Research and Quality, 2015).
The UCC will have a diverse workforce that can identify and relate to cultural differences;
familiarize themselves with health care delivery relevant to patients’ unique socioeconomic,
linguistic, and cultural requirements; and provide unbiased care. Hence, by delivering ethically
and culturally sensitive health care services, physicians will enhance patient experience and
medical outcomes (Cigna, n.d.).
With all the stakeholders engaged in the process and focused on achieving the center’s
vision, the rollout of the UCC will be a success and it will help WMC to sustain itself within the
health care business. However, the implementation plan has some areas of uncertainty. The
successful rollout of the UCC is highly dependent on the timely disbursement of the loan
required for the construction of the UCC. If the loan does not get disbursed on time, then the
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
6
rollout will have to be set for a different timeline when the loan amount becomes available, and
this will delay the implementation plan. Also, it is uncertain whether the actual number of patient
visits at the UCC will match the estimated patient volume. This is because people in the
community may not be aware of the benefits of availing care at the UCC due to lack of sufficient
information, misinformation, or misunderstanding. The center will then have to bear the
operating losses arising from low patient turnout. Further, an aging population suggests that the
number of people who will need health care is set to increase in the coming years (Yakobi,
2017). This will overburden all health care practitioners at WMC.
WMC must thus be ready to facilitate a larger number of patients than it may have
anticipated. This negative impact can be mitigated by expanding WMC over the next few years
by using the revenue generated by the UCC. WMC’s capacity and workforce could be expanded
through the construction of additional departments or centers, addition of facilities and
equipment, and hiring of new staff.
Strategies to Deal With Dynamic Environmental Forces
Various environmental forces, such as the presence of a retail health clinic in the center’s
vicinity and the possibility of new UCCs being set up in the vicinity, could affect the urgent care
services offered at WMC. The retail health clinic and the UCC have some common key
characteristics such as easy accessibility, extended hours, convenience, and health care at
affordable costs (Chang et al., 2015). This makes both clinics viable options for patients.
However, UCCs are particularly beneficial to patients who wish to avail immediate health care
services from physicians for conditions that are not life-threatening. UCCs, often staffed with
emergency medicine physicians and equipped with more testing facilities than a retail clinic, are
capable of providing care with high acuity (Chang et al., 2015). Therefore, by virtue of the
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IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
7
convenient and quality health care it provides, the UCC is an economically viable asset for
WMC.
Another factor that could affect the UCC at WMC is possible competition from
upcoming UCCs and primary health clinics in the vicinity. Patients will choose the UCC over
other clinics in the neighborhood once they have complete trust in it. Staff at the UCC will send
out frequent health reminders to regular patients to ensure that the patients do not miss their
regular checkups. This will help the patients to not miss their regular checkups. Also, the staff
will analyze patients’ views on health care and customize care to improve patient outcomes and
experience. This will not only help increase patient visits but also improve patients’ level of trust
in the UCC (“Helping patients make informed decisions,” 2014). With all these measures in
place, the UCC will be able to beat the competition from upcoming UCCs, making it a viable
asset to WMC in the face of unpredictable environmental situations.
Conclusion
The budget for the UCC shows that it will be economically viable for WMC. With the
active commitment and cooperation of all the key stakeholders at WMC and the strategies
planned to face dynamic environmental forces, the team endeavors to implement the initiative
successfully. It is believed that the UCC will serve not only as an additional revenue stream but
also as a viable asset that provides quality community health care services.
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IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
8
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
AMN Healthcare. (2015). Convenient care: Growth and staffing trends in urgent care and retail
medicine. Retrieved from https://
amnhealthcare.com/uploadedFiles/MainSite/Content/Healthcare_Industry_Insights/Indust
ry_Research/AMN%2015%20W001_Convenient%20Care%20Whitepaper(1).pdf
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. Retrieved
from
http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocvie
w%2F1698429950%3Fac
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, April 6). Nominal wage tracker. Retrieved from
https://epi.org/nominal-wage-tracker/
Helping patients make informed decisions. (2014, April). Retrieved from https://cmpaacpm.ca/en/advice-publications/browse-articles/2014/helping-patients-make-informeddecisions
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
9
Qin, H., Prybutok, G. L., Prybutok, V. R., & Wang, B. (2015). Quantitative comparisons of
urgent care service providers. International Journal of Health Care Quality
Assurance, 28(6), 574–594. Retrieved from
http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocvie
w%2F1694933787%3Facco
Urgent Care Center Market by Service (Acute Illness Treatment, Trauma/Injury Treatment,
Physical Examination, Immunization & Vaccination), Ownership (Corporate Owned,
Physician Owned, Hospital Owned), and Region – Global Forecast to 2023. (2018,
March). Retrieved from https://marketsandmarkets.com/Market-Reports/urgent-carecenter-market-197843477.html
U.S. Bureau of Labor Statistics. (2017). Occupational employment statistics. Retrieved from
https://www.bls.gov/oes/current/naics4_621400.htm
Yakobi, R. (2017). Impact of urgent care centers on emergency department visits. Health Care
Current Reviews, 5(3). http://dx.doi.org/10.4172/2375-4273.1000204
Yee, T., Lechner, A. E., & Boukus, E. R. (2013). The surge in urgent care centers: Emergency
department alternative or costly convenience? Research Briefs. Retrieved from
https://researchgate.net/profile/Tracy_Yee/publication/257202014_The_surge_in_urgent
_care_centers_emergency_department_alternative_or_costly_convenience/links/5750682
008aed9fa2bd2d531
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Comment [A2]: ‘www.’ has to be included in
the link for it to work.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
10
Appendix
5-Year Budget for Proposed Economic Initiative
FY 2019
Year 1
($)
Opening Cash Balance
Fund Received
Loan
Operating Receipts
Patient Service Receipts
(UCC)
Total Receipts
0.00
FY 2020
Year 2
($)
FY 2021
Year 3
($)
FY 2022
Year 4
($)
FY 2023
Year 5
($)
Total
($)
1,465,820.00
3,024,260.00
4,680,446.00
6,312,389.73
0.00
2,730,000.00
2,866,500.00
3,009,825.00
3,160,316.25
3,318,332.06
15,084,973.31
2,730,000.00
2,866,500.00
3,009,825.00
3,160,316.25
3,318,332.06
15,084,973.31
175,000.00
175,000.00
Operating Payments
Staff Salaries
Basic Utilities
Insurance
Other Operating Payments
Total Operating Payments
825,000.00
55,000.00
15,000.00
327,600.00
849,750.00
57,750.00
15,000.00
343,980.00
875,242.50
60,637.50
15,000.00
361,179.00
1,023,885.20
63,669.38
20,000.00
379,237.95
1,315,719.80
66,852.84
25,000.00
398,199.85
4,889,597.50
303,909.72
90,000.00
1,810,196.80
1,222,600.00
1,266,480.00
1,312,059.00
1,486,792.52
1,805,772.49
7,093,704.01
Operating Surplus/Deficit
1,507,400.00
1,600,020.00
1,697,766.00
1,673,523.73
1,512,559.57
7,991,269.30
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(207,900.00)
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(207,900.00)
Nonoperating Payments
Annual Loan Repayment
Total Nonoperating
Expenses
Investments
Construction, Furniture,
and Equipment
Cash Surplus/Deficit
Closing Cash Balance
(350,000.00)
1,465,820.00
1,465,820.00
1,558,440.00
3,024,260.00
1,656,186.00
4,680,446.00
1,631,943.73
6,312,389.73
1,470,979.57
7,783,369.30
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
7,783,369.30
7,783,369.30
7/1/2019
Implementation Plan for a New Economic Opportunity Scoring Guide
Implementation Plan for a New Economic Opportunity Scoring Guide
CRITERIA
NON-PERFORMANCE
BASIC
PROFICIENT
DISTINGUISHED
Create a budget for
relevant expected
costs and earnings
or benefits over the
first five years of a
proposed economic
initiative.
Does not create a
budget for relevant
expected costs and
earnings or benefits
over the first five
years of a proposed
economic initiative.
Attempts to create
a budget, but
omits template, or
omits relevant
costs or earnings,
or fails to take into
account findings
and feedback
received on the
feasibility report.
Creates a budget
for relevant
expected costs
and earnings or
benefits over the
first five years of
a proposed
economic
initiative.
Creates a budget for relevant
expected costs and earnings or
benefits over the first five years
of a proposed economic
initiative, and identifies
assumptions on which budget is
based.
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.
Does not 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.
Proposes a plan,
but fails to include
a timeline, plans
for working with
stakeholders, or
ethical and
cultural
considerations.
Proposes 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.
Proposes 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. Identifies
knowledge gaps, unknowns,
missing information,
unanswered questions, or areas
of uncertainty (where further
information could improve the
plan).
Analyze how a
proposed initiative,
once implemented,
may impact aspects
of a care setting and
ways in which
negative impacts
could be mitigated.
Does not analyze
how a proposed
initiative, once
implemented, may
impact aspects of a
care setting and
ways in which
negative impacts
could be mitigated.
Attempts to
analyze possible
impacts, but omits
positive or
negative impacts
or fails to suggest
mitigations for
negative impacts.
Analyzes how a
proposed
initiative, once
implemented,
may impact
aspects of a care
setting and ways
in which negative
impacts could be
mitigated.
Analyzes how a proposed
initiative, once implemented,
may impact aspects of a care
setting and ways in which
negative impacts could be
mitigated, and identifies
assumptions on which the
analysis is based.
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.
Does not 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.
Proposes
strategies but they
are impractical or
fail to realistically
consider
environmental
forces or risks.
Explains
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.
Explains 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. Identifies relevant
knowledge gaps, unknowns,
missing information,
unanswered questions, or areas
of uncertainty.
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Implementation Plan for a New Economic Opportunity Scoring Guide
CRITERIA
NON-PERFORMANCE
BASIC
PROFICIENT
DISTINGUISHED
Justify the relevance
and value of the
quantitative and
qualitative
economic, financial,
and scholarly
evidence used to
support
recommendations
throughout a plan.
Does not justify the
relevance and value
of the quantitative
and qualitative
economic, financial,
and scholarly
evidence used to
support
recommendations
throughout a plan.
Attempts to justify
the relevance and
value of evidence
used to support
recommendations,
but justification
lacks logic or
clarity.
Justifies the
relevance and
value of the
quantitative and
qualitative
economic,
financial, and
scholarly
evidence used to
support
recommendations
throughout a
plan.
Justifies the relevance and value
of the quantitative and
qualitative economic, financial,
and scholarly evidence used to
support recommendations
throughout a plan, and suggests
criteria that could be used to
evaluate the evidence.
Communicate a
business and
implementation plan
in a logically
structured and
concise manner,
writing content
clearly with correct
use of grammar,
punctuation, and
spelling.
Does not
communicate a
business and
implementation plan
in a logically
structured and
concise manner,
writing content
clearly with correct
use of grammar,
punctuation, and
spelling.
Communicates in
a manner that is
not consistently
clear, logically
structured, or
concise; errors in
grammar,
punctuation, or
spelling distract
from the
message.
Communicates a
business and
implementation
plan in a logically
structured and
concise manner,
writing content
clearly with
correct use of
grammar,
punctuation, and
spelling.
Communicates a business and
implementation plan in a
logically structured, clear,
concise, and persuasive
manner; grammar, punctuation,
and spelling are without errors.
Effectively support a
plan and
recommendations
with relevant
economic data and
scholarly sources,
correctly formatting
citations and
references using
current APA style.
Does not effectively
support a plan and
recommendations
with relevant
economic data and
scholarly sources,
correctly formatting
citations and
references using
current APA style.
Includes data or
sources that lack
relevance, or
incorrectly formats
citations or
references.
Effectively
supports a plan
and
recommendations
with relevant
economic data
and scholarly
sources, correctly
formatting
citations and
references using
current APA style.
Effectively supports a plan and
recommendations with relevant
economic data and scholarly
sources, correctly formatting
citations and references using
current APA style. Citations are
free from all errors.
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NHS-FP6008 Assessment 3 Context
Assessment 3 Context
Economic Decision Making
As part of economic decision making, all health care leaders are expected to conduct a basic
cost-benefit analysis (CBA). If you have not yet had the opportunity to conduct a CBA in the
workplace, it is important to become familiar with this highly relevant tool for economic decision
making. You may also find that this tool is helpful in your daily life.
There are many factors to consider in making a sound economic decision. You must consider
the major risk categories associated with the alternative, the time value of money, and the
strategic fit over a long-term planning horizon. Some of the questions you need to consider are:
•
Does the recommended alternative break even at year two, and become more profitable
thereafter? What is the relative value of the income from the investment if one considers
the time value of money? What about the organizational context?
•
Will the organization’s focus and strategy change?
•
Will sufficient funds be available to support the project past the breakeven point in year
two? Will the chosen alternative be at risk for obsolescence?
The Role of H
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.
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 profitmaximizing 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?
Assignment Instruction
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.
Running head: IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
Implementation Plan for a New Economic Opportunity
Learner’s Name
Capella University
Health Care Economics and Decision Making
Implementation Plan for a New Economic Opportunity
December, 2017
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
1
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
2
Implementation Plan for a New Economic Opportunity
The economic initiative proposed to the senior management of Whilborne Medical
Center (WMC) is setting up an urgent care center (UCC) on WMC’s premises. A UCC is a
health care facility that offers immediate care for injuries and illnesses that are not lifethreatening (Yee, Lechner, & Boukus, 2013). The UCC at WMC will aim to deliver safe, timely,
patient-centered, efficient, and effective health care to the community as well as attempt to
address health inequalities in the community.
An economic and environmental analysis was conducted to determine the feasibility of
setting up the UCC, and a business plan was presented to the senior management of WMC. The
management believes that this initiative has the potential to benefit the organization in the short
and long term. With this in view, an implementation plan for setting up the UCC has been
prepared. The implementation plan includes a 5-year budget for the UCC, a timeline for rolling
out the UCC, an analysis of how the UCC might impact WMC, and an explanation of how WMC
should deal with dynamic environmental forces.
Budget for the Proposed Urgent Care Center
A budget has been prepared to show the projected revenue and the expenses that the UCC
expects to incur over a 5-year period following the completion of its construction. The budget
has been created based on the assumption that construction of the UCC will be completed by the
end of 2018. Therefore, the budget plan contains revenue and expenditure details for the first 5
years of operation, from 2019 to 2023.
Revenue per annum over a 5-year period has been calculated by multiplying the expected
patient volume by average consultation charges. It is estimated that around 357 patients will visit
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
3
the UCC per week and around $156 will be charged per patient per visit (AMN Healthcare,
2015; Yakobi, 2017). Thus, the revenue generated during the first year of operation is expected
to be around $2,730,000. The UCC’s revenue is expected to increase by 5.3% annually (“Urgent
Care Center Market,” 2018). Operating expenses for the UCC will comprise staff salaries, basic
utilities, insurance, and other operating expenses (such as administrative and marketing costs).
Staff salaries for the first three years include the salaries of a full-time physician
($232,000), a nurse practitioner ($112,000), a medical assistant ($35,000), and a medical
receptionist ($32,000) (U.S. Bureau of Labor Statistics, 2017). However, in years four and five,
new staff will be recruited to manage the increased number of patients. The new staff will
comprise a full-time nurse practitioner and a full-time physician, whose salaries will be
calculated taking into consideration the 2.7% per annum estimated actual growth rate of
employees’ salaries (Economic Policy Institute, 2018). Expenditure on basic utilities is assumed
to increase by 5% each year. Insurance expenses are assumed to increase in the fourth and fifth
years of operation owing to recruitment of two staff members. Other operating expenses are
assumed to be 12% of annual revenue based on trends observed in WMC’s financial statements.
The total expected capital cost for the project is $350,000. One half of this cost will be
funded through WMC’s reserves, and a bank loan will be arranged to fund the other half.
Therefore, WMC will need to take a loan of $175,000 to fund this economic initiative. Assuming
that the loan tenure is 5 years and the interest rate is 7% per annum, the loan repayment is
expected to be $41,580 per annum.
As per the budget, the UCC will earn a cash surplus during the first 5 years. The cash
surplus generated in the fourth and fifth years of operation may be lower than the third year
owing to recruitment of staff members in these years. The total cash surplus in the first 5 years is
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
Comment [A1]: Great job thinking ahead!
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
4
estimated at $7,783,369.30 (see Appendix for more information on the 5-year budget for the
proposed economic initiative).
Rolling out the Economic Initiative
The first step in the implementation plan is to set a timeline to roll out the UCC to the
public. It is assumed that it will take around 2 months for WMC senior management to approve
the project and for a bank to approve the loan. Considering that construction of the UCC will
take around 7 months, the process is scheduled to begin in June 2018 and is expected to be
completed by December 2018. After discussing with WMC’s senior management, the plan is to
have the UCC fully operational from the first month of 2019.
Active engagement and participation by stakeholders can ensure better clinical outcomes
and patient experience in an urgent care setting. The board of directors of WMC and the senior
management, the physicians, the nurses, and other staff members of WMC are some of the
relevant internal stakeholders of this economic initiative. For successful implementation of the
plan, it is crucial to collaborate with all internal stakeholders to obtain their inputs during the
initial stages of implementation and decision-making. Meetings will be held with the
stakeholders on a regular basis to discuss the progress of the UCC and devise ways to improve
its health care services.
WMC has always strived to focus on the six areas of health care quality stated by the
Institute of Medicine (IOM), namely timeliness, safety, patient-centeredness, efficiency, equity,
and effectiveness (Agency for Healthcare Research and Quality, 2015). It will be communicated
to all internal stakeholders that the UCC will also focus on these six areas and that setting up the
UCC will take WMC a step forward toward accomplishing its vision of serving the community.
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
5
In order to make this initiative sustainable, the staff working at the UCC will be encouraged to
keep WMC’s vision in mind while trying to meet their short- and long-term goals.
Patients are the key external stakeholders in the health care business. If patients receive
quick and timely care from excellent service providers, they will be encouraged to visit again and
refer new patients to the UCC. Being compassionate with patients, dealing with them in an
ethical and culturally sensitive manner, and communicating medical information effectively will
encourage patient loyalty while also ensuring that they adhere to their treatment plan (“Helping
patients make informed decisions,” 2014). The resultant increase in patient flow and goodwill
will help the UCC become a successful and sustainable venture.
To ensure that the rollout of the center is done in an ethical and culturally sensitive
manner, the UCC will follow the principles of the American Academy of Urgent Care Medicine,
which includes not discriminating against patients on the basis of gender, age, color, religion,
culture, disability, or other characteristics (Agency for Healthcare Research and Quality, 2015).
The UCC will have a diverse workforce that can identify and relate to cultural differences;
familiarize themselves with health care delivery relevant to patients’ unique socioeconomic,
linguistic, and cultural requirements; and provide unbiased care. Hence, by delivering ethically
and culturally sensitive health care services, physicians will enhance patient experience and
medical outcomes (Cigna, n.d.).
With all the stakeholders engaged in the process and focused on achieving the center’s
vision, the rollout of the UCC will be a success and it will help WMC to sustain itself within the
health care business. However, the implementation plan has some areas of uncertainty. The
successful rollout of the UCC is highly dependent on the timely disbursement of the loan
required for the construction of the UCC. If the loan does not get disbursed on time, then the
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
6
rollout will have to be set for a different timeline when the loan amount becomes available, and
this will delay the implementation plan. Also, it is uncertain whether the actual number of patient
visits at the UCC will match the estimated patient volume. This is because people in the
community may not be aware of the benefits of availing care at the UCC due to lack of sufficient
information, misinformation, or misunderstanding. The center will then have to bear the
operating losses arising from low patient turnout. Further, an aging population suggests that the
number of people who will need health care is set to increase in the coming years (Yakobi,
2017). This will overburden all health care practitioners at WMC.
WMC must thus be ready to facilitate a larger number of patients than it may have
anticipated. This negative impact can be mitigated by expanding WMC over the next few years
by using the revenue generated by the UCC. WMC’s capacity and workforce could be expanded
through the construction of additional departments or centers, addition of facilities and
equipment, and hiring of new staff.
Strategies to Deal With Dynamic Environmental Forces
Various environmental forces, such as the presence of a retail health clinic in the center’s
vicinity and the possibility of new UCCs being set up in the vicinity, could affect the urgent care
services offered at WMC. The retail health clinic and the UCC have some common key
characteristics such as easy accessibility, extended hours, convenience, and health care at
affordable costs (Chang et al., 2015). This makes both clinics viable options for patients.
However, UCCs are particularly beneficial to patients who wish to avail immediate health care
services from physicians for conditions that are not life-threatening. UCCs, often staffed with
emergency medicine physicians and equipped with more testing facilities than a retail clinic, are
capable of providing care with high acuity (Chang et al., 2015). Therefore, by virtue of the
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
7
convenient and quality health care it provides, the UCC is an economically viable asset for
WMC.
Another factor that could affect the UCC at WMC is possible competition from
upcoming UCCs and primary health clinics in the vicinity. Patients will choose the UCC over
other clinics in the neighborhood once they have complete trust in it. Staff at the UCC will send
out frequent health reminders to regular patients to ensure that the patients do not miss their
regular checkups. This will help the patients to not miss their regular checkups. Also, the staff
will analyze patients’ views on health care and customize care to improve patient outcomes and
experience. This will not only help increase patient visits but also improve patients’ level of trust
in the UCC (“Helping patients make informed decisions,” 2014). With all these measures in
place, the UCC will be able to beat the competition from upcoming UCCs, making it a viable
asset to WMC in the face of unpredictable environmental situations.
Conclusion
The budget for the UCC shows that it will be economically viable for WMC. With the
active commitment and cooperation of all the key stakeholders at WMC and the strategies
planned to face dynamic environmental forces, the team endeavors to implement the initiative
successfully. It is believed that the UCC will serve not only as an additional revenue stream but
also as a viable asset that provides quality community health care services.
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
8
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
AMN Healthcare. (2015). Convenient care: Growth and staffing trends in urgent care and retail
medicine. Retrieved from https://
amnhealthcare.com/uploadedFiles/MainSite/Content/Healthcare_Industry_Insights/Indust
ry_Research/AMN%2015%20W001_Convenient%20Care%20Whitepaper(1).pdf
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. Retrieved
from
http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocvie
w%2F1698429950%3Fac
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, April 6). Nominal wage tracker. Retrieved from
https://epi.org/nominal-wage-tracker/
Helping patients make informed decisions. (2014, April). Retrieved from https://cmpaacpm.ca/en/advice-publications/browse-articles/2014/helping-patients-make-informeddecisions
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
9
Qin, H., Prybutok, G. L., Prybutok, V. R., & Wang, B. (2015). Quantitative comparisons of
urgent care service providers. International Journal of Health Care Quality
Assurance, 28(6), 574–594. Retrieved from
http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocvie
w%2F1694933787%3Facco
Urgent Care Center Market by Service (Acute Illness Treatment, Trauma/Injury Treatment,
Physical Examination, Immunization & Vaccination), Ownership (Corporate Owned,
Physician Owned, Hospital Owned), and Region – Global Forecast to 2023. (2018,
March). Retrieved from https://marketsandmarkets.com/Market-Reports/urgent-carecenter-market-197843477.html
U.S. Bureau of Labor Statistics. (2017). Occupational employment statistics. Retrieved from
https://www.bls.gov/oes/current/naics4_621400.htm
Yakobi, R. (2017). Impact of urgent care centers on emergency department visits. Health Care
Current Reviews, 5(3). http://dx.doi.org/10.4172/2375-4273.1000204
Yee, T., Lechner, A. E., & Boukus, E. R. (2013). The surge in urgent care centers: Emergency
department alternative or costly convenience? Research Briefs. Retrieved from
https://researchgate.net/profile/Tracy_Yee/publication/257202014_The_surge_in_urgent
_care_centers_emergency_department_alternative_or_costly_convenience/links/5750682
008aed9fa2bd2d531
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
Comment [A2]: ‘www.’ has to be included in
the link for it to work.
IMPLEMENTATION PLAN FOR A NEW ECONOMIC OPPORTUNITY
10
Appendix
5-Year Budget for Proposed Economic Initiative
FY 2019
Year 1
($)
Opening Cash Balance
Fund Received
Loan
Operating Receipts
Patient Service Receipts
(UCC)
Total Receipts
0.00
FY 2020
Year 2
($)
FY 2021
Year 3
($)
FY 2022
Year 4
($)
FY 2023
Year 5
($)
Total
($)
1,465,820.00
3,024,260.00
4,680,446.00
6,312,389.73
0.00
2,730,000.00
2,866,500.00
3,009,825.00
3,160,316.25
3,318,332.06
15,084,973.31
2,730,000.00
2,866,500.00
3,009,825.00
3,160,316.25
3,318,332.06
15,084,973.31
175,000.00
175,000.00
Operating Payments
Staff Salaries
Basic Utilities
Insurance
Other Operating Payments
Total Operating Payments
825,000.00
55,000.00
15,000.00
327,600.00
849,750.00
57,750.00
15,000.00
343,980.00
875,242.50
60,637.50
15,000.00
361,179.00
1,023,885.20
63,669.38
20,000.00
379,237.95
1,315,719.80
66,852.84
25,000.00
398,199.85
4,889,597.50
303,909.72
90,000.00
1,810,196.80
1,222,600.00
1,266,480.00
1,312,059.00
1,486,792.52
1,805,772.49
7,093,704.01
Operating Surplus/Deficit
1,507,400.00
1,600,020.00
1,697,766.00
1,673,523.73
1,512,559.57
7,991,269.30
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(207,900.00)
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(41,580.00)
(207,900.00)
Nonoperating Payments
Annual Loan Repayment
Total Nonoperating
Expenses
Investments
Construction, Furniture,
and Equipment
Cash Surplus/Deficit
Closing Cash Balance
(350,000.00)
1,465,820.00
1,465,820.00
1,558,440.00
3,024,260.00
1,656,186.00
4,680,446.00
1,631,943.73
6,312,389.73
1,470,979.57
7,783,369.30
Copyright ©2018 Capella University. Copy and distribution of this document are prohibited.
7,783,369.30
7,783,369.30
7/1/2019
Implementation Plan for a New Economic Opportunity Scoring Guide
Implementation Plan for a New Economic Opportunity Scoring Guide
CRITERIA
NON-PERFORMANCE
BASIC
PROFICIENT
DISTINGUISHED
Create a budget for
relevant expected
costs and earnings
or benefits over the
first five years of a
proposed economic
initiative.
Does not create a
budget for relevant
expected costs and
earnings or benefits
over the first five
years of a proposed
economic initiative.
Attempts to create
a budget, but
omits template, or
omits relevant
costs or earnings,
or fails to take into
account findings
and feedback
received on the
feasibility report.
Creates a budget
for relevant
expected costs
and earnings or
benefits over the
first five years of
a proposed
economic
initiative.
Creates a budget for relevant
expected costs and earnings or
benefits over the first five years
of a proposed economic
initiative, and identifies
assumptions on which budget is
based.
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.
Does not 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.
Proposes a plan,
but fails to include
a timeline, plans
for working with
stakeholders, or
ethical and
cultural
considerations.
Proposes 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.
Proposes 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. Identifies
knowledge gaps, unknowns,
missing information,
unanswered questions, or areas
of uncertainty (where further
information could improve the
plan).
Analyze how a
proposed initiative,
once implemented,
may impact aspects
of a care setting and
ways in which
negative impacts
could be mitigated.
Does not analyze
how a proposed
initiative, once
implemented, may
impact aspects of a
care setting and
ways in which
negative impacts
could be mitigated.
Attempts to
analyze possible
impacts, but omits
positive or
negative impacts
or fails to suggest
mitigations for
negative impacts.
Analyzes how a
proposed
initiative, once
implemented,
may impact
aspects of a care
setting and ways
in which negative
impacts could be
mitigated.
Analyzes how a proposed
initiative, once implemented,
may impact aspects of a care
setting and ways in which
negative impacts could be
mitigated, and identifies
assumptions on which the
analysis is based.
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.
Does not 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.
Proposes
strategies but they
are impractical or
fail to realistically
consider
environmental
forces or risks.
Explains
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.
Explains 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. Identifies relevant
knowledge gaps, unknowns,
missing information,
unanswered questions, or areas
of uncertainty.
https://courserooma.capella.edu/bbcswebdav/institution/NHS-FP/NHS-FP6008/180700/Scoring_Guides/a03_scoring_guide.html
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7/1/2019
Implementation Plan for a New Economic Opportunity Scoring Guide
CRITERIA
NON-PERFORMANCE
BASIC
PROFICIENT
DISTINGUISHED
Justify the relevance
and value of the
quantitative and
qualitative
economic, financial,
and scholarly
evidence used to
support
recommendations
throughout a plan.
Does not justify the
relevance and value
of the quantitative
and qualitative
economic, financial,
and scholarly
evidence used to
support
recommendations
throughout a plan.
Attempts to justify
the relevance and
value of evidence
used to support
recommendations,
but justification
lacks logic or
clarity.
Justifies the
relevance and
value of the
quantitative and
qualitative
economic,
financial, and
scholarly
evidence used to
support
recommendations
throughout a
plan.
Justifies the relevance and value
of the quantitative and
qualitative economic, financial,
and scholarly evidence used to
support recommendations
throughout a plan, and suggests
criteria that could be used to
evaluate the evidence.
Communicate a
business and
implementation plan
in a logically
structured and
concise manner,
writing content
clearly with correct
use of grammar,
punctuation, and
spelling.
Does not
communicate a
business and
implementation plan
in a logically
structured and
concise manner,
writing content
clearly with correct
use of grammar,
punctuation, and
spelling.
Communicates in
a manner that is
not consistently
clear, logically
structured, or
concise; errors in
grammar,
punctuation, or
spelling distract
from the
message.
Communicates a
business and
implementation
plan in a logically
structured and
concise manner,
writing content
clearly with
correct use of
grammar,
punctuation, and
spelling.
Communicates a business and
implementation plan in a
logically structured, clear,
concise, and persuasive
manner; grammar, punctuation,
and spelling are without errors.
Effectively support a
plan and
recommendations
with relevant
economic data and
scholarly sources,
correctly formatting
citations and
references using
current APA style.
Does not effectively
support a plan and
recommendations
with relevant
economic data and
scholarly sources,
correctly formatting
citations and
references using
current APA style.
Includes data or
sources that lack
relevance, or
incorrectly formats
citations or
references.
Effectively
supports a plan
and
recommendations
with relevant
economic data
and scholarly
sources, correctly
formatting
citations and
references using
current APA style.
Effectively supports a plan and
recommendations with relevant
economic data and scholarly
sources, correctly formatting
citations and references using
current APA style. Citations are
free from all errors.
https://courserooma.capella.edu/bbcswebdav/institution/NHS-FP/NHS-FP6008/180700/Scoring_Guides/a03_scoring_guide.html
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NHS-FP6008 Assessment 3 Context
Assessment 3 Context
Economic Decision Making
As part of economic decision making, all health care leaders are expected to conduct a basic
cost-benefit analysis (CBA). If you have not yet had the opportunity to conduct a CBA in the
workplace, it is important to become familiar with this highly relevant tool for economic decision
making. You may also find that this tool is helpful in your daily life.
There are many factors to consider in making a sound economic decision. You must consider
the major risk categories associated with the alternative, the time value of money, and the
strategic fit over a long-term planning horizon. Some of the questions you need to consider are:
•
Does the recommended alternative break even at year two, and become more profitable
thereafter? What is the relative value of the income from the investment if one considers
the time value of money? What about the organizational context?
•
Will the organization’s focus and strategy change?
•
Will sufficient funds be available to support the project past the breakeven point in year
two? Will the chosen alternative be at risk for obsolescence?
The Role of H
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