HP 620 Final Project Milestone One
Guidelines and Rubric
Prompt: Select the
organization you would like to analyze in part two of the final project using
the U.S. Securities and Exchange Commission’s EDGAR database. Present your
proposal to the instructor for approval to ensure that you will have access to
sufficient financial information on the healthcare organization to complete the
final project. In your proposal, address the following elements:
· What
organization is the focus of your report?
· Analyze the
organization by identifying the sub-industry or type of organization it belongs
to (e.g., home care, hospital) and the financial background of the
organization.
· Based upon the
information you researched in Module Two, is the organization you selected a
nonprofit or for-profit?
· Finally,
considering the sub-industry your organization belongs to, what kind of impact
do the economic principles of demand and market/consumer behavior have on this
organization’s financial statements? For example, do the statements reflect a
spike on revenue during the winter due to increased injuries and accidents
related to ice?
· Support your
proposal with a minimum of two cited sources.
Guidelines for
Submission: Proposals should be 2–3 paragraphs, double-spaced, 12-point Times
New Roman font, and one-inch margins. Your proposal must also follow APA
formatting and all resources and references should be cited appropriately.
Part 1
Microeconomic
principles
Management
is the first microeconomic principle. Management engages in planning, staffing,
organizing, coordinating and directing functions. These functions must be
handled carefully to reduce costs and enhance efficiency. Customers /patients are essential to a health
facility; these institutions exist to serve these individuals. The choice of
health care organization normally determines eventual revenues and costs with
private entities charging higher prices. Employees are another microeconomic
aspect; they enable these facilities to function and include physicians, nurses
and other support staff. A poorly staffed facility might be overwhelmed by the
number of patients compromising patient care.
Distribution
channels/suppliers are also under this criterion. For facilities to function
seamlessly then inbound logistics is an important function. If these
institutions are unable to procure medicine or health care equipment then it
could lead to death of patients. Investors fund health care facilities hence
constitute micro environmental factors; they ensure better patient care is
provided by financing health care facilities. Product/service is another
microenvironment element; in health care, provision of better services and
patient care is the ultimate goal. Poor service delivery can impact general
health of the citizens (Cowell,
2006).
Macroeconomic
principles
Legal
principles have a great impact on health care. A great example is obamacare
legislations whose main emphasis was improving patient care through encouraging
American citizens to take up insurance schemes. Insurance schemes in most
instances have eased the access to healthcare for most individuals. Political
factors mainly focus on the stability of a nation as well as how federal administration
affects this sector. Developing nations
are more susceptible to this principle since they may be faced by factors such
as violence or ethnic wars which affect aspects of healthcare such as the
delivery of medical supplies (Bernanke,
Antonovics & Frank, 2015).
Demographic
principles concentrate on population and its dynamics; countries like the China
or India have very high populations which may compromise patient care because
of inadequate health care providers. Other factors within demographic principle
like age dynamics are impactful as well. For example, Japanese health providers
are consistently put under pressure because of the countries aging population
Social-cultural
principles are numerous and include; education, income/occupation, religion and
geographic region. Individuals with low income levels are less likely to afford
certain health care privileges because of high cost unless they are on
insurance programs. Technological principles constitute the final area; it is a
dynamic area that impacts patient care. For instance, implementing database management
systems will improve patient confidentiality as well as expediting the process
of registering patients (Bernanke,
Antonovics & Frank, 2015).
Part 2
This
discussion will tackle home care facilities. The management of this facilities help
in planning patient care and how the practitioners can provide better care at
homes. They normally hire qualified and competent medics who have experience in
the field to ensure their patients get the best care. Since their patients are
attended to at their place of residence, medical supplies must be in handy as
well as an efficient logistics program to satisfy place utility. Most of these
facilities are usually privately funded hence commitment by investors is very
important (Ahhqi, 2014).
Investors are part of the microeconomic environment and play a huge role in
funding of home care entities.
Like
all medical centers, legal principles affect them, for example, to maximize
revenues, avoid default but at the same time ensure the laws are followed to
the latter, these institutions have procedures to handle patients funded by third
parties such as insurance entities. Managing of revenues has become very
challenging with the introduction of insurance programs. If administrators
don’t create a comprehensive plan to ensure patients supported by third party
insurance firms eventually pay their bills then the organization may run into bankruptcy.
In demographic terms, home care facilities are
universal hence don’t target specific groups. However, programs are designed
based on the patient under care. For instance the elderly require more
attention. Most of these institution practice private care hence target patients
with medium to high income levels to avoid accumulation of bills. Private care
is very demanding and expensive; if decision makers are to target low income
earners then those considered must have insurance policies to reduce instances
of unpaid bills.
Additionally, Home care based patients usually
require special care; this necessitates the intervention of superior technology
e.g. use of chemotherapy equipment. The functioning of such equipments bring
into play several dynamics, they include; high initial costs and high
administrative costs. High administrative costs are as a result of enlisting
services of the best staff. To ensure revenues exceed costs then the
administrators have to set their charges high. Higher hospital charges are
synonymous with high income levels.
Conclusion
The
above discussion clearly shows that micro and macro-environment principles are
very important factors in the eventual success of health care institutions. The
management of these organizations have to be aware of the challenges and
possible opportunities that may arise because of the above principles. The paper also eliminates the
notion that these principles only affect businesses. Although some health care
organizations are non profit, a majority must function like businesses by develop
revenue models to enhance their chances of survival; the models created are
affected by factors discussed in this paper.
References
Bernanke, B., Antonovics, K., &
Frank, R. (2015). Principles of macroeconomics. McGraw-Hill Higher
Education.
Cowell, F. A. (2006).
Microeconomics: principles and analysis. OUP Catalogue.
Ahhqi. (2014). The future of home
health care projects. Retrieved from: http://www.ahhqi.org/images/pdf/future-whitepaper.pdf
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