Group Discussion 3, Module 5
Group 4: Alexis Ruffin, Kendra Scott, Britney Smith, Quatavia Stokes, Eloisa Velasquez,
Raven Vilo, Charia Williams, LaToya Williams
Department of Nursing and Allied Health, Norfolk State University
HSM 331-90: Health Financial Management
Dr. Batrina Martin
April 03, 2022
#1. Who should be financially responsible for the costs related to Mr. Jones’s latest
admission?
Gholizadeh, M., Janati, A., Delgoshaei, B., Gorji, H. A., & Tourani, S. (2018).
Implementation requirements for patient discharge planning in the health
system: a qualitative study in Iran. Ethiopian Journal of Health Sciences, 28(2), 157.
https://doi.org/10.4314/ ejhs.v28i2.7
Gholizadeh explains how prior to a patient being discharged, all information should be gathered
to discuss with the patient and/or a family member which is why it is a vital piece in the health
system flow in many countries. According to the article, successful discharge planning has long
been identified as the cornerstone of an effective transition of individuals from a hospital to their
home. It also explains how the discharge phase of a hospital stay requires several components,
including assessment of a patient's current needs, appropriate anticipation of continuing care
needs, and recognition of available resources to meet after-hospital care needs. This article
examines how discharge planning promotes the quality of inpatient care and reduces unplanned
hospital readmission. Gholizadeh reports on preventing certain readmissions has the potential to
improve both the quality of life for patients and the financial well-being of healthcare systems.
The author also how improvements in hospital discharge planning can significantly improve
health outcomes for patients as they move to the next level of care.
Howard-Anderson, J., Busuttil, A., Lonowski, S., Vangala, S., & Afsar-manesh, N. (2016).
From discharge to readmission: Understanding the process from the patient
perspective. Journal of Hospital Medicine, 11(6), 407–412. https://doi.org/10.1002/
jhm.2560
Howard-Anderson reports that by engaging patients or patients for future interventions, including
better symptom management and self-care planning prior to discharge, along with more clarity in
discharge instructions, promoting awareness of outpatient resources, and improved alignment of
patient and provider attitudes, readmissions could potentially be reduced.
Smeraglio, A., Heidenreich, P. A., Krishnan, G., Hopkins, J., Chen, J., & Shieh, L. (2019).
Patient vs provider perspectives of 30-day hospital readmissions. BMJ Open Quality,
8(1), e000264. https://doi.org/10.1136/bmjoq-2017-000264
Smeraglio reports since it is the healthcare providers responsibility to provide patients with clear
instructions before their discharge, the financial responsibility should not fall on Mr. Jones. The
author explains how many readmitted patients often feel that the hospital system contributed to
their readmission. Since Mr. Jones was readmitted, he may eventually express the same
concerns.
Nowicki, M. (2017). Introduction to the Financial Management of Healthcare Organizations,
Seventh Edition (Gateway to Healthcare Management) (7th ed.). Health
Administration Press.
This article supports the idea that because the skilled nursing home had an internal auditor, they
should be financially responsible for Mr. Jones’s most recent admission. It was the hospital's job
to explain that information because proper discharge instructions have the potential to prevent
readmissions and enhance the quality of a patient’s life.
#2. Should Medicare, or any insurer, pay for readmissions related to errors in
discharge instructions?
Due to the lack of communication from the hospital , the hospital should be held
accountable for Mr. Jones readmission. In the case study it is stated “ The admitting physician
discovered that no one at the hospital or skilled nursing facility explained to Mr. Jones the
importance of maintaining a low-sodium diet.” It was the charge nurse/ discharge nurse, case
manager, to have noticed that Mr. Jones was not well enough to be discharged. Given 4 days in
the hospital for his repeat symptoms, Mr. Jones' assigned physician should have been updated on
his condition and discharging him should have not been a consideration.
Reimbursement for health services are based on certain criteria, which includes, but not
limited to high-quality, cost-effective care. The Accountable Care Organization, ACO, was
created in 2007, and “mandates provider accountability” (Nowicki, 2018). As an ACO, health
care providers, hospitals, and doctors work together to give high-quality care to Medicare
patients, with a goal to avoid repeat services and medical errors. ACOs are to “engage in reliable
performance measurement techniques that instill confidence in the quality of care provided” The
(Kavita K. Patel, 2015). Hospital Readmissions Reduction Program is a Medicare value-based
purchasing program that encourages hospitals to improve communication and care coordination
to better engage patients and caregivers in discharge plans, and in turn reduce avoidable
readmissions.
Hospital Readmissions Reduction Program (HRRP) https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment /AcuteInpatientPPS/ReadmissionsReduction-Program
The program supports the national goal of improving healthcare for Americans by linking
payment to the quality of hospital care( gov, 2021). The Affordable Care Act established the
hospital Readmission Reduction Program in 2012. Under this program hospitals are financially
penalized if they have higher than expected risk-standardized 30-day readmission rates for acute
myocardial infarction,heart failure , and pneumonia.
Hospitals readmission measures have been touted not only as a quality measure, but also as a
means to bend the healthcare cost curve( gov,2012). Hospital readmissions are associated with
favorable patient outcomes and high financial costs (gov,2012). The Medicare Payment
Advisory Commission has estimated that 12% of readmissions are potentially avoidable
(gov,2012).
Leeann N. Comfort, S. M. (2018). Medicare Accountable Care Organizations of Diverse
Structures Achieve Comparable Quality and Cost Performance. NCBI.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6052017/
This article compares three ACO types; physician-led, integrated, and hybrid in quality, spending
and likelihood to achieve savings. Research shows that ACOs that are independent primary care
providers tend to save more money than hospital-integrated medical groups. This supports Mr.
Jone’s case scenario in that he visited a hospital versus a primary care physician or family
practice, which resulted in less attentive care, leaving the hospital responsible for lack of
communication.
#3. Would it be different if Mr. Jones received instructions for a low-sodium diet but
chose to ignore them?
Yes, it would be different if Mr. Jones encountered instructions for a low sodium diet and
chose to ignore them. With that being stated, if Mr. Jones chose to avoid the discharge
instructions that were given to him, he is basically implying that he does not care. In this
example, Mr. Jones entered a nursing facility and no one gave him a clear explanation of what a
low sodium diet is, and why it was important for him to abide by it. When adapting a low sodium
diet, physicians tend to suggest that family members assist their loved ones to ensure compliance
and understanding of what is required of them. Also, physicians convey a plan of action
technique that best suits the patient to follow. In Mr. Jones’ defense, he probably was unsure of
what was happening to him and just took what was given, because of the condition he was in.
Tending for elderly patients like Mr. Jones and having a discussion on their well being is critical
to have. Nonetheless, having the conversation gives important information to continue healthier
decisions to maintain independence or safety.
Lennie, T. A., Chung, M. L., & Moser, D. K. (2013, September). What should we tell
patients with heart failure about sodium restriction and how should we counsel them?
Current heart failure reports. Retrieved April 1, 2022, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3774591/
The article relates to this discussion because Mr. Jones was not given any instruction. The article
explains the correct ways to handle elderly patients going through congestive heart failure. Being
on the low sodium diet, and evidence based solutions that can decrease his risk of becoming
hospitalized. It also gives insight on what is commonly recommended for a person in his
situation to avoid the rise in fluid and swollen ankles.
U.S. Department of Health and Human Services. (n.d.). Talking with older patients about
sensitive topics. National Institute on Aging. Retrieved April 1, 2022, from
https://www.nia.nih.gov/health/talking-older-patients-about-sensitive-topics
This article connects with the discussion, it justified how to communicate with elderly patients
without avoiding unnecessary awkwardness. Some techniques used to approach sensitive
subjects is to directly console the given situation, as well as having resources for more
information or support to patients. In the discussion they failed to present Mr. Jones instructions
on how to prevent another heart failure episode.
Kalogeropoulos, A. P., Georgiopoulou, V. V., Murphy, R. A., Newman, A. B., Bauer, D. C.,
Harris, T. B., Yang, Z., Applegate, W. B., & Kritchevsky, S. B. (2015). Dietary sodium
content, mortality, and risk for cardiovascular events in older adults. JAMA Internal
Medicine, 175(3), 410–419. https://doi.org/10.1001/jamainternmed.2014.6278
This article is in accordance with this discussion because it informs us of the dietary sodium
intake in older adults. Taking in too much sodium can lead to major health problems for an older
person like cardiovascular disease, or heart failure. With this being said without Mr. Jones
knowing any different instructions from his normal day the blame can not be placed on him and
what can happen to him if the sodium intake does not improve in any way.
References
Gholizadeh, M., Janati, A., Delgoshaei, B., Gorji, H. A., & Tourani, S. (2018). Implementation
requirements for patient discharge planning in the health system: a qualitative study in
Iran. Ethiopian Journal of Health Sciences, 28(2), 157. https://doi.org/10.4314/
ejhs.v28i2.7
Howard-Anderson, J., Busuttil, A., Lonowski, S., Vangala, S., & Afsar-manesh, N. (2016). From
discharge to readmission: Understanding the process from the patient perspective.
Journal of Hospital Medicine, 11(6), 407–412. https://doi.org/10.1002/jhm.2560
Hospital Readmissions Reduction Program (HRRP) https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment /AcuteInpatientPPS/ReadmissionsReduction-Program
Kalogeropoulos, A. P., Georgiopoulou, V. V., Murphy, R. A., Newman, A. B., Bauer, D. C.,
Harris, T. B., Yang, Z., Applegate, W. B., & Kritchevsky, S. B. (2015). Dietary sodium
content, mortality, and risk for cardiovascular events in older adults. JAMA Internal
Medicine, 175(3), 410–419. https://doi.org/10.1001/jamainternmed.2014.6278
Kavita K. Patel, J. E. (2015). Accountable Care Organizations. AHA Journals.
Leeann N. Comfort, S. M. (2018). Medicare Accountable Care Organizations of Diverse
Structures Achieve Comparable Quality and Cost Performance. NCBI.
Lennie, T. A., Chung, M. L., & Moser, D. K. (2013, September).
What should we tell patients with heart failure about sodium restriction and how should
we counsel them? Current heart failure reports. Retrieved April 2, 2022, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3774591/
Nowicki, M. (2017). Introduction to the Financial Management of Healthcare Organizations,
Seventh Edition (Gateway to Healthcare Management) (7th ed.). Health Administration
Press.
Smeraglio, A., Heidenreich, P. A., Krishnan, G., Hopkins, J., Chen, J., & Shieh, L. (2019).
Patient vs provider perspectives of 30-day hospital readmissions. BMJ Open Quality,
8(1), e000264. https://doi.org/10.1136/bmjoq-2017-000264
U.S. Department of Health and Human Services. (n.d.). Talking with older patients about
sensitive topics. National Institute on Aging. Retrieved April 1, 2022, from
https://www.nia.nih.gov/health/talking-older-patients-about-sensitive-topics
Appendix A
Group Discussion 3, Module 5
Group 4: Alexis Ruffin, Kendra Scott, Britney Smith, Quatavia Stokes, Eloisa Velasquez,
Raven Vilo, Charia Williams, LaToya Williams
Department of Nursing and Allied Health, Norfolk State University
HSM 331-90: Health Financial Management
Dr. Batrina Martin
April 03, 2022
#1. Who should be financially responsible for the costs related to Mr. Jones’s latest
admission?
Gholizadeh, M., Janati, A., Delgoshaei, B., Gorji, H. A., & Tourani, S. (2018).
Implementation requirements for patient discharge planning in the health
system: a qualitative study in Iran. Ethiopian Journal of Health Sciences, 28(2), 157.
https://doi.org/10.4314/ ejhs.v28i2.7
Gholizadeh explains how prior to a patient being discharged, all information should be gathered
to discuss with the patient and/or a family member which is why it is a vital piece in the health
system flow in many countries. According to the article, successful discharge planning has long
been identified as the cornerstone of an effective transition of individuals from a hospital to their
home. It also explains how the discharge phase of a hospital stay requires several components,
including assessment of a patient's current needs, appropriate anticipation of continuing care
needs, and recognition of available resources to meet after-hospital care needs. This article
examines how discharge planning promotes the quality of inpatient care and reduces unplanned
hospital readmission. Gholizadeh reports on preventing certain readmissions has the potential to
improve both the quality of life for patients and the financial well-being of healthcare systems.
The author also how improvements in hospital discharge planning can significantly improve
health outcomes for patients as they move to the next level of care.
Howard-Anderson, J., Busuttil, A., Lonowski, S., Vangala, S., & Afsar-manesh, N. (2016).
From discharge to readmission: Understanding the process from the patient
perspective. Journal of Hospital Medicine, 11(6), 407–412. https://doi.org/10.1002/
jhm.2560
Howard-Anderson reports that by engaging patients or patients for future interventions, including
better symptom management and self-care planning prior to discharge, along with more clarity in
discharge instructions, promoting awareness of outpatient resources, and improved alignment of
patient and provider attitudes, readmissions could potentially be reduced.
Smeraglio, A., Heidenreich, P. A., Krishnan, G., Hopkins, J., Chen, J., & Shieh, L. (2019).
Patient vs provider perspectives of 30-day hospital readmissions. BMJ Open Quality,
8(1), e000264. https://doi.org/10.1136/bmjoq-2017-000264
Smeraglio reports since it is the healthcare providers responsibility to provide patients with clear
instructions before their discharge, the financial responsibility should not fall on Mr. Jones. The
author explains how many readmitted patients often feel that the hospital system contributed to
their readmission. Since Mr. Jones was readmitted, he may eventually express the same
concerns.
Nowicki, M. (2017). Introduction to the Financial Management of Healthcare Organizations,
Seventh Edition (Gateway to Healthcare Management) (7th ed.). Health
Administration Press.
This article supports the idea that because the skilled nursing home had an internal auditor, they
should be financially responsible for Mr. Jones’s most recent admission. It was the hospital's job
to explain that information because proper discharge instructions have the potential to prevent
readmissions and enhance the quality of a patient’s life.
#2. Should Medicare, or any insurer, pay for readmissions related to errors in
discharge instructions?
Due to the lack of communication from the hospital , the hospital should be held
accountable for Mr. Jones readmission. In the case study it is stated “ The admitting physician
discovered that no one at the hospital or skilled nursing facility explained to Mr. Jones the
importance of maintaining a low-sodium diet.” It was the charge nurse/ discharge nurse, case
manager, to have noticed that Mr. Jones was not well enough to be discharged. Given 4 days in
the hospital for his repeat symptoms, Mr. Jones' assigned physician should have been updated on
his condition and discharging him should have not been a consideration.
Reimbursement for health services are based on certain criteria, which includes, but not
limited to high-quality, cost-effective care. The Accountable Care Organization, ACO, was
created in 2007, and “mandates provider accountability” (Nowicki, 2018). As an ACO, health
care providers, hospitals, and doctors work together to give high-quality care to Medicare
patients, with a goal to avoid repeat services and medical errors. ACOs are to “engage in reliable
performance measurement techniques that instill confidence in the quality of care provided” The
(Kavita K. Patel, 2015). Hospital Readmissions Reduction Program is a Medicare value-based
purchasing program that encourages hospitals to improve communication and care coordination
to better engage patients and caregivers in discharge plans, and in turn reduce avoidable
readmissions.
Hospital Readmissions Reduction Program (HRRP) https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment /AcuteInpatientPPS/ReadmissionsReduction-Program
The program supports the national goal of improving healthcare for Americans by linking
payment to the quality of hospital care( gov, 2021). The Affordable Care Act established the
hospital Readmission Reduction Program in 2012. Under this program hospitals are financially
penalized if they have higher than expected risk-standardized 30-day readmission rates for acute
myocardial infarction,heart failure , and pneumonia.
Hospitals readmission measures have been touted not only as a quality measure, but also as a
means to bend the healthcare cost curve( gov,2012). Hospital readmissions are associated with
favorable patient outcomes and high financial costs (gov,2012). The Medicare Payment
Advisory Commission has estimated that 12% of readmissions are potentially avoidable
(gov,2012).
Leeann N. Comfort, S. M. (2018). Medicare Accountable Care Organizations of Diverse
Structures Achieve Comparable Quality and Cost Performance. NCBI.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6052017/
This article compares three ACO types; physician-led, integrated, and hybrid in quality, spending
and likelihood to achieve savings. Research shows that ACOs that are independent primary care
providers tend to save more money than hospital-integrated medical groups. This supports Mr.
Jone’s case scenario in that he visited a hospital versus a primary care physician or family
practice, which resulted in less attentive care, leaving the hospital responsible for lack of
communication.
#3. Would it be different if Mr. Jones received instructions for a low-sodium diet but
chose to ignore them?
Yes, it would be different if Mr. Jones encountered instructions for a low sodium diet and
chose to ignore them. With that being stated, if Mr. Jones chose to avoid the discharge
instructions that were given to him, he is basically implying that he does not care. In this
example, Mr. Jones entered a nursing facility and no one gave him a clear explanation of what a
low sodium diet is, and why it was important for him to abide by it. When adapting a low sodium
diet, physicians tend to suggest that family members assist their loved ones to ensure compliance
and understanding of what is required of them. Also, physicians convey a plan of action
technique that best suits the patient to follow. In Mr. Jones’ defense, he probably was unsure of
what was happening to him and just took what was given, because of the condition he was in.
Tending for elderly patients like Mr. Jones and having a discussion on their well being is critical
to have. Nonetheless, having the conversation gives important information to continue healthier
decisions to maintain independence or safety.
Lennie, T. A., Chung, M. L., & Moser, D. K. (2013, September). What should we tell
patients with heart failure about sodium restriction and how should we counsel them?
Current heart failure reports. Retrieved April 1, 2022, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3774591/
The article relates to this discussion because Mr. Jones was not given any instruction. The article
explains the correct ways to handle elderly patients going through congestive heart failure. Being
on the low sodium diet, and evidence based solutions that can decrease his risk of becoming
hospitalized. It also gives insight on what is commonly recommended for a person in his
situation to avoid the rise in fluid and swollen ankles.
U.S. Department of Health and Human Services. (n.d.). Talking with older patients about
sensitive topics. National Institute on Aging. Retrieved April 1, 2022, from
https://www.nia.nih.gov/health/talking-older-patients-about-sensitive-topics
This article connects with the discussion, it justified how to communicate with elderly patients
without avoiding unnecessary awkwardness. Some techniques used to approach sensitive
subjects is to directly console the given situation, as well as having resources for more
information or support to patients. In the discussion they failed to present Mr. Jones instructions
on how to prevent another heart failure episode.
Kalogeropoulos, A. P., Georgiopoulou, V. V., Murphy, R. A., Newman, A. B., Bauer, D. C.,
Harris, T. B., Yang, Z., Applegate, W. B., & Kritchevsky, S. B. (2015). Dietary sodium
content, mortality, and risk for cardiovascular events in older adults. JAMA Internal
Medicine, 175(3), 410–419. https://doi.org/10.1001/jamainternmed.2014.6278
This article is in accordance with this discussion because it informs us of the dietary sodium
intake in older adults. Taking in too much sodium can lead to major health problems for an older
person like cardiovascular disease, or heart failure. With this being said without Mr. Jones
knowing any different instructions from his normal day the blame can not be placed on him and
what can happen to him if the sodium intake does not improve in any way.
References
Gholizadeh, M., Janati, A., Delgoshaei, B., Gorji, H. A., & Tourani, S. (2018). Implementation
requirements for patient discharge planning in the health system: a qualitative study in
Iran. Ethiopian Journal of Health Sciences, 28(2), 157. https://doi.org/10.4314/
ejhs.v28i2.7
Howard-Anderson, J., Busuttil, A., Lonowski, S., Vangala, S., & Afsar-manesh, N. (2016). From
discharge to readmission: Understanding the process from the patient perspective.
Journal of Hospital Medicine, 11(6), 407–412. https://doi.org/10.1002/jhm.2560
Hospital Readmissions Reduction Program (HRRP) https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment /AcuteInpatientPPS/ReadmissionsReduction-Program
Kalogeropoulos, A. P., Georgiopoulou, V. V., Murphy, R. A., Newman, A. B., Bauer, D. C.,
Harris, T. B., Yang, Z., Applegate, W. B., & Kritchevsky, S. B. (2015). Dietary sodium
content, mortality, and risk for cardiovascular events in older adults. JAMA Internal
Medicine, 175(3), 410–419. https://doi.org/10.1001/jamainternmed.2014.6278
Kavita K. Patel, J. E. (2015). Accountable Care Organizations. AHA Journals.
Leeann N. Comfort, S. M. (2018). Medicare Accountable Care Organizations of Diverse
Structures Achieve Comparable Quality and Cost Performance. NCBI.
Lennie, T. A., Chung, M. L., & Moser, D. K. (2013, September).
What should we tell patients with heart failure about sodium restriction and how should
we counsel them? Current heart failure reports. Retrieved April 2, 2022, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3774591/
Nowicki, M. (2017). Introduction to the Financial Management of Healthcare Organizations,
Seventh Edition (Gateway to Healthcare Management) (7th ed.). Health Administration
Press.
Smeraglio, A., Heidenreich, P. A., Krishnan, G., Hopkins, J., Chen, J., & Shieh, L. (2019).
Patient vs provider perspectives of 30-day hospital readmissions. BMJ Open Quality,
8(1), e000264. https://doi.org/10.1136/bmjoq-2017-000264
U.S. Department of Health and Human Services. (n.d.). Talking with older patients about
sensitive topics. National Institute on Aging. Retrieved April 1, 2022, from
https://www.nia.nih.gov/health/talking-older-patients-about-sensitive-topics
Appendix A
HSM 331 Discussion 1
Group 4 Members:
Britney Smith
Eloisa Velasquez
Kendra Scott
Alexis Ruffin
LaToya Williams
Raven Vilo
Quatvia Stokes
Charia W.
2017
ASSETS
Current Assets
Cash
Temporary investments
Receivables, net
Inventory
Prepaid expenses
Total Current assets
$
124
45
3,536
175
32
3,912
2016
$
280
30
2,860
140
40
3,350
Noncurrent assets
Land, plant, and equipment
Less accumulated depreciation
Plant and equipment, net
Long-term investments
Other noncurent assets
Total noncurrent assets
6,980
1,730
5,250
609
113
5,972
6,580
1,259
5,321
790
109
6,220
Total assets
9,884
9,570
LIABILITIES AND NET ASSETS
Current liabilities
Accounts payable
Notes payable
Accrued expenses payable
Deferred revenues
Estimated third-party adjustments
Current portion of long-term debt
Total current liabilities
$
302
345
871
10
137
184
1,849
$
370
335
606
15
224
178
1,728
Noncurrent liabilities
Long-term debt, net of current portion
3,600
3,500
Total liabilities
5,449
5,228
NET ASSETS
Unrestricted net assets
Restricted net assets
3,283
1,152
3,190
1,152
Total net assets
4,435
4,342
Total liabilities and net assets
$9,884
$9,570
2017
REVENUES
Net patient services revenue
Premium revenue on sponsored health plans
Other operating revenue
Total operating revenue
EXPENSES
Salaries, wages, and benefits
Supplies, drugs, and purchased services
Estimated bad debt expense
Depreciation expense
Interest
Total operating expenses
OPERATING INCOME
NON OPERATING INCOME
Investment income
EXCESS OF REVENUE OVER EXPENSES
CHANGE IN NET ASSETS
Add: Unrestricted net assets January 1
Unrestricted net assets December 31
8402
400
440
$9,242
4980
3080
600
471
113
9,244
(2)
$95
93
3,190
3,283
2016
8119
0
447
$8,566
4278
2956
500
443
109
8,286
280
$85
365
2,825
3,190
Three steps of financial analysis
1. Establishing facts about the organization.
2. Comparing facts about the organization with similar organizations.
3. Using perspective judgements to make decisions about comparisons made.
Accounting Equations
Balance Sheet: Assets=Liabilities Net Assets
Operations: Assets= Liabilities + Net Assets + (Net Revenue -Expenses)
Footnotes
Purpose of balance sheet: It reflects the organization financial position, towards the end of the accounting period. Als
Purpose of statement of operations: Sums up the organization's revenue in a time frame
Operating Indicators
Average length of stay: Patients days/ discharge
Occupancy rate: Patient days/ 365 * license beds
References
Nowicki, M. (2022). Introduction to the financial management of Healthcare Organizations (7th ed.). Health Admini
and net assets.
Group Discussion 3, Module 5
Group 4: Alexis Ruffin, Kendra Scott, Britney Smith, Quatavia Stokes, Eloisa Velasquez,
Raven Vilo, Charia Williams, LaToya Williams
Department of Nursing and Allied Health, Norfolk State University
HSM 331-90: Health Financial Management
Dr. Batrina Martin
April 03, 2022
#1. Who should be financially responsible for the costs related to Mr. Jones’s latest
admission?
Gholizadeh, M., Janati, A., Delgoshaei, B., Gorji, H. A., & Tourani, S. (2018).
Implementation requirements for patient discharge planning in the health
system: a qualitative study in Iran. Ethiopian Journal of Health Sciences, 28(2), 157.
https://doi.org/10.4314/ ejhs.v28i2.7
Gholizadeh explains how prior to a patient being discharged, all information should be gathered to
discuss with the patient and/or a family member which is why it is a vital piece in the health
system flow in many countries. According to the article, successful discharge planning has long
been identified as the cornerstone of an effective transition of individuals from a hospital to their
home. It also explains how the discharge phase of a hospital stay requires several components,
including assessment of a patient's current needs, appropriate anticipation of continuing care needs,
and recognition of available resources to meet after-hospital care needs. This article examines how
discharge planning promotes the quality of inpatient care and reduces unplanned hospital
readmission. Gholizadeh reports on preventing certain readmissions has the potential to improve
both the quality of life for patients and the financial well-being of healthcare systems. The author
also how improvements in hospital discharge planning can significantly improve health outcomes
for patients as they move to the next level of care.
Howard-Anderson, J., Busuttil, A., Lonowski, S., Vangala, S., & Afsar-manesh, N. (2016).
From discharge to readmission: Understanding the process from the patient
perspective. Journal of Hospital Medicine, 11(6), 407–412. https://doi.org/10.1002/
jhm.2560
Howard-Anderson reports that by engaging patients or patients for future interventions, including
better symptom management and self-care planning prior to discharge, along with more clarity in
discharge instructions, promoting awareness of outpatient resources, and improved alignment of
patient and provider attitudes, readmissions could potentially be reduced.
Smeraglio, A., Heidenreich, P. A., Krishnan, G., Hopkins, J., Chen, J., & Shieh, L. (2019).
Patient vs provider perspectives of 30-day hospital readmissions. BMJ Open Quality,
8(1), e000264. https://doi.org/10.1136/bmjoq-2017-000264
Smeraglio reports since it is the healthcare providers responsibility to provide patients with clear
instructions before their discharge, the financial responsibility should not fall on Mr. Jones. The
author explains how many readmitted patients often feel that the hospital system contributed to
their readmission. Since Mr. Jones was readmitted, he may eventually express the same concerns.
Nowicki, M. (2017). Introduction to the Financial Management of Healthcare Organizations,
Seventh Edition (Gateway to Healthcare Management) (7th ed.). Health Administration
Press.
This article supports the idea that because the skilled nursing home had an internal auditor, they
should be financially responsible for Mr. Jones’s most recent admission. It was the hospital's job
to explain that information because proper discharge instructions have the potential to prevent
readmissions and enhance the quality of a patient’s life.
#2. Should Medicare, or any insurer, pay for readmissions related to errors in
discharge instructions?
Due to the lack of communication from the hospital , the hospital should be held
accountable for Mr. Jones readmission. In the case study it is stated “ The admitting physician
discovered that no one at the hospital or skilled nursing facility explained to Mr. Jones the
importance of maintaining a low-sodium diet.” It was the charge nurse/ discharge nurse, case
manager, to have noticed that Mr. Jones was not well enough to be discharged. Given 4 days in the
hospital for his repeat symptoms, Mr. Jones' assigned physician should have been updated on his
condition and discharging him should have not been a consideration.
Reimbursement for health services are based on certain criteria, which includes, but not
limited to high-quality, cost-effective care. The Accountable Care Organization, ACO, was created
in 2007, and “mandates provider accountability” (Nowicki, 2018). As an ACO, health care
providers, hospitals, and doctors work together to give high-quality care to Medicare patients, with
a goal to avoid repeat services and medical errors. ACOs are to “engage in reliable performance
measurement techniques that instill confidence in the quality of care provided” The (Kavita K.
Patel, 2015). Hospital Readmissions Reduction Program is a Medicare value-based purchasing
program that encourages hospitals to improve communication and care coordination to better
engage patients and caregivers in discharge plans, and in turn reduce avoidable readmissions.
Hospital Readmissions Reduction Program (HRRP) https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment /AcuteInpatientPPS/ReadmissionsReduction-Program
The program supports the national goal of improving healthcare for Americans by linking payment
to the quality of hospital care( gov, 2021). The Affordable Care Act established the hospital
Readmission Reduction Program in 2012. Under this program hospitals are financially penalized if
they have higher than expected risk-standardized 30-day readmission rates for acute myocardial
infarction,heart failure , and pneumonia.
Hospitals readmission measures have been touted not only as a quality measure, but also as a
means to bend the healthcare cost curve( gov,2012). Hospital readmissions are associated with
favorable patient outcomes and high financial costs (gov,2012). The Medicare Payment Advisory
Commission has estimated that 12% of readmissions are potentially avoidable (gov,2012).
Leeann N. Comfort, S. M. (2018). Medicare Accountable Care Organizations of Diverse
Structures Achieve Comparable Quality and Cost Performance. NCBI.
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6052017/
This article compares three ACO types; physician-led, integrated, and hybrid in quality, spending
and likelihood to achieve savings. Research shows that ACOs that are independent primary care
providers tend to save more money than hospital-integrated medical groups. This supports Mr.
Jone’s case scenario in that he visited a hospital versus a primary care physician or family practice,
which resulted in less attentive care, leaving the hospital responsible for lack of communication.
#3. Would it be different if Mr. Jones received instructions for a low-sodium diet but
chose to ignore them?
Yes, it would be different if Mr. Jones encountered instructions for a low sodium diet and
chose to ignore them. With that being stated, if Mr. Jones chose to avoid the discharge instructions
that were given to him, he is basically implying that he does not care. In this example, Mr. Jones
entered a nursing facility and no one gave him a clear explanation of what a low sodium diet is,
and why it was important for him to abide by it. When adapting a low sodium diet, physicians tend
to suggest that family members assist their loved ones to ensure compliance and understanding of
what is required of them. Also, physicians convey a plan of action technique that best suits the
patient to follow. In Mr. Jones’ defense, he probably was unsure of what was happening to him and
just took what was given, because of the condition he was in. Tending for elderly patients like Mr.
Jones and having a discussion on their well being is critical to have. Nonetheless, having the
conversation gives important information to continue healthier decisions to maintain independence
or safety.
Lennie, T. A., Chung, M. L., & Moser, D. K. (2013, September). What should we tell patients
with heart failure about sodium restriction and how should we counsel them? Current heart
failure reports. Retrieved April 1, 2022, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3774591/
The article relates to this discussion because Mr. Jones was not given any instruction. The article
explains the correct ways to handle elderly patients going through congestive heart failure. Being
on the low sodium diet, and evidence based solutions that can decrease his risk of becoming
hospitalized. It also gives insight on what is commonly recommended for a person in his situation
to avoid the rise in fluid and swollen ankles.
U.S. Department of Health and Human Services. (n.d.). Talking with older patients about
sensitive topics. National Institute on Aging. Retrieved April 1, 2022, from
https://www.nia.nih.gov/health/talking-older-patients-about-sensitive-topics
This article connects with the discussion, it justified how to communicate with elderly patients
without avoiding unnecessary awkwardness. Some techniques used to approach sensitive subjects
is to directly console the given situation, as well as having resources for more information or
support to patients. In the discussion they failed to present Mr. Jones instructions on how to
prevent another heart failure episode.
Kalogeropoulos, A. P., Georgiopoulou, V. V., Murphy, R. A., Newman, A. B., Bauer, D. C.,
Harris, T. B., Yang, Z., Applegate, W. B., & Kritchevsky, S. B. (2015). Dietary sodium
content, mortality, and risk for cardiovascular events in older adults. JAMA Internal
Medicine, 175(3), 410–419. https://doi.org/10.1001/jamainternmed.2014.6278
This article is in accordance with this discussion because it informs us of the dietary sodium intake
in older adults. Taking in too much sodium can lead to major health problems for an older person
like cardiovascular disease, or heart failure. With this being said without Mr. Jones knowing any
different instructions from his normal day the blame can not be placed on him and what can
happen to him if the sodium intake does not improve in any way.
References
Gholizadeh, M., Janati, A., Delgoshaei, B., Gorji, H. A., & Tourani, S. (2018). Implementation
requirements for patient discharge planning in the health system: a qualitative study in Iran.
Ethiopian Journal of Health Sciences, 28(2), 157. https://doi.org/10.4314/ ejhs.v28i2.7
Howard-Anderson, J., Busuttil, A., Lonowski, S., Vangala, S., & Afsar-manesh, N. (2016). From
discharge to readmission: Understanding the process from the patient perspective. Journal
of Hospital Medicine, 11(6), 407–412. https://doi.org/10.1002/jhm.2560
Hospital Readmissions Reduction Program (HRRP) https://www.cms.gov/Medicare/
Medicare-Fee-for-Service-Payment /AcuteInpatientPPS/ReadmissionsReduction-Program
Kalogeropoulos, A. P., Georgiopoulou, V. V., Murphy, R. A., Newman, A. B., Bauer, D. C.,
Harris, T. B., Yang, Z., Applegate, W. B., & Kritchevsky, S. B. (2015). Dietary
sodium
content, mortality, and risk for cardiovascular events in older adults. JAMA
Internal
Medicine, 175(3), 410–419.
https://doi.org/10.1001/jamainternmed.2014.6278
Kavita K. Patel, J. E. (2015). Accountable Care Organizations. AHA Journals.
Leeann N. Comfort, S. M. (2018). Medicare Accountable Care Organizations of Diverse
Structures Achieve Comparable Quality and Cost Performance. NCBI.
Lennie, T. A., Chung, M. L., & Moser, D. K. (2013, September).
What should we tell patients with heart failure about sodium restriction and how
should
we counsel them? Current heart failure reports. Retrieved April 2, 2022, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3774591/
Nowicki, M. (2017). Introduction to the Financial Management of Healthcare Organizations,
Seventh Edition (Gateway to Healthcare Management) (7th ed.). Health Administration
Press.
Smeraglio, A., Heidenreich, P. A., Krishnan, G., Hopkins, J., Chen, J., & Shieh, L. (2019).
Patient vs provider perspectives of 30-day hospital readmissions. BMJ Open Quality, 8(1),
e000264. https://doi.org/10.1136/bmjoq-2017-000264
U.S. Department of Health and Human Services. (n.d.). Talking with older patients about
sensitive topics. National Institute on Aging. Retrieved April 1, 2022, from
https://www.nia.nih.gov/health/talking-older-patients-about-sensitive-topics
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