Supply of Primary Care Workforce, business and finance homework help

Content Type

User Generated

User

uraebp2003

Subject

Business Finance

Description

To deliver healthcare services, an ACO needs to create a competent workforce that can provide healthcare to the patients that are in the ACO. Some integrated ACO entities already have employed physicians and mid-level providers that receive salaries from the organization, whereas other non-integrated ACO entities need to invest in external relationships with independent physicians and other providers. Since ACOs do not have managerial control over non-employed providers, additional controls and incentives may be necessary to ensure that efficiency is maximized. ACOs also need to consider the number and mix of specialists (e.g., family practice vs internal medicine) and mid-level providers (e.g., physician assistants and nurse practitioners) in delivering primary care services that can promote value. Maximizing value requires appropriate workforce decisions on supply and incentives to encourage providers to minimize costs. For this Assignment, examine the Week 2 Assignment document and consider the efficiency in the supply of health services.

What I need:

2- to 3-page Word document that includes tables and/or calculations, make recommendations on the following: 1) number of physicians and nurse practitioners (assume an equal number of physicians and nurse practitioners); 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address challenges of supplier-induced demand and ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Support your recommendations with rationale, including how the financial calculations impacted your recommendations.

Unformatted Attachment Preview

Healthcare Financial Management and Economics Supply of Primary Care Workforce Scenario: Your hospital has an opportunity to participate with an Accountable Care Organization (ACO) contract with 100,000 ACO patients. The ACO patient population expects about 10,000 avoidable hospitalizations per year with a potential savings of $100 million, which will be shared as follows: 50% revenue to the insurer and 50% revenue to the hospital. The ACO patient population will require an average of six office visits per year, and 600,000 total office visits will need to be supplied by your primary care workforce. Based on the scenario and financial data provided, conduct a financial projection (revenues, expenses, and profit) that analyzes the efficiency in the supply of health services. What I need: 2- to 3-page Word document that includes tables and/or calculations, make recommendations on the following: 1) number of physicians and nurse practitioners needed; 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address the challenges of supplier-induced demand and how to ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Explain the rationale behind your recommendations, including the impact made by your financial calculations. Financial Data ACO revenue: Number of ACO patients Potential savings: Number of avoidable hospitalizations per patient Total avoidable hospitalizations per year Cost per avoidable hospitalization Total cost of avoidable hospitalizations Demand for healthcare/utilization: Number of office visits per patient Total office visits per year © 2015 Laureate Education, Inc. 100,000 0.1 10,000 $10,000 $100,000,000 6 600,000 Page 1 of 2 Supply of workforce/expense: Employed providers (salary) Physician salary per year Nurse practitioner salary per year Contracted providers (fee-for-service) Physician fee per visit Nurse practitioner fee per visit Productivity: Physician visits per year Nurse practitioner visits per year Financial incentives: Salary bonus to ensure efficiency Bonus fee per visit to ensure efficiency © 2015 Laureate Education, Inc. $200,000 $100,000 $100 $50 3,000 2,000 10% $1 Page 2 of 2
Purchase answer to see full attachment

Tags: Health Insurance financing

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: HEALTHCARE FINANCIAL MANAGEMENT AND ECONOMICS

Healthcare Financial Management and Economics
Names:
Institution:

1

HEALTHCARE FINANCIAL MANAGEMENT AND ECONOMICS

2

Healthcare financial management and economics
Accountable care organizations (ACOs) seek to minimize the cost of healthcare through
the elimination of unnecessary services and at the same time raising the quality of service
through ensuring that the patients are in good health (Nash & Healthcare Intelligence Network,
2012). In the current scenario, the hospital has access to 100,000 patients that will be visiting the
hospital an average of 6 times a year each. On the other hand, each physician will visit the
hospital 3,000 times while a nurse visits 2,000 times. In order to serve the 600,000 patient visits
per year, and with each being attended by a physician and a nurse, the organization will need:
Number of healthcare practitioners
Physi...