NURS FPX 6612 Assessment 4 Cost Savings Analysis

Cost Savings Analysis

In this assessment, I am writing an executive summary to the manager of my organization. My manager has directed me to examine how care coordination can improve cost, and outcomes helps collect data, and ultimately improves the community’s quality of health. Based on her instruction, a spreadsheet on cost-saving data has been compiled, and data/finding has been presented in executive summary form.

Cost analysis is a crucial process for hospitals that involves examining and evaluating the costs of providing healthcare services to patients. This includes direct costs like medical supplies and equipment and indirect expenses such as administrative and staffing costs. Cost analysis aims to recognize possibilities for lowering expenses while maintaining the quality of patient care as the top priority. This could involve analyzing specific procedures for cost-effectiveness or examining overall operational processes for more efficient staffing or supply chain management. The cost analysis process is ongoing and involves regular monitoring of expenses and performance metrics to identify trends and areas for improvement. Hospitals may also benchmark against other healthcare providers to compare costs and performance and identify opportunities for further improvement.

NURS FPX 6612 Assessment 4 Cost Savings Analysis

Here is what cost-saving data in the hospital would look like:

This spreadsheet has identified four cost-saving elements for the hospital, along with their current costs and anticipated savings. The first element is switching to LED lighting, which is expected to save the hospital $5,000 per year compared to the current cost of $20,000 for lighting. The second element is implementing an electronic medical records system, which is expected to save the hospital $30,000 per year compared to the current $100,000 for paper-based records. The third element is reducing staff overtime hours, which is expected to save the hospital $10,000 per year compared to the current cost of $50,000 for overtime pay. The fourth element is using an energy-efficient HVAC system, which is expected to save the hospital $8,000 per year compared to the current cost of $30,000 for heating and cooling.

Care Coordination Can be Cost Saving

There are many methods by which care coordination can help in cost savings. Firstly, by providing coordinated care, healthcare providers can avoid unnecessary duplication of services and reduce the risk of medical errors, leading to lower healthcare costs (Rawlinson et al., 2021). Secondly, care coordination can help to reduce the length of hospital stays and prevent readmissions, which can be a significant source of healthcare expenses (Kripalani et al., 2019). Thirdly, by providing preventative care and early interventions, care coordination can help to reduce the need for expensive treatments and procedures (Peikes et al., 2009).

There are underlying assumptions of care coordination as well. A cost-saving measure includes the belief that coordinated care can improve patient outcomes and reduce the risk of medical errors. Additionally, it assumes that providers can effectively access the necessary resources and support to coordinate care across multiple providers and settings. Based on a synthesis of the literature, it is reasonable to conclude that care coordination can generate significant cost savings while improving patient outcomes (Phua et al., 2020). Studies have shown that care coordination can reduce hospital readmissions, decrease emergency department visits, and improve patient satisfaction (Hoyer et al., 2017). Furthermore, cost savings associated with care coordination have been demonstrated across various healthcare settings, including primary care, specialty care, and long-term care (Hoyer et al., 2017). 

Meantime, care coordination is a promising strategy for generating cost savings in healthcare while improving patient outcomes. It requires collaboration and effective communication among healthcare providers and assumes that resources and support are available to facilitate coordination. With the appropriate investments in infrastructure and resources, care coordination can become an effective tool for achieving healthcare cost savings and improving patient outcomes.

Care Coordination Improves Health Consumerism and Outcome

Care coordination is crucial in healthcare delivery. It is useful in promoting and improving health consumerism and effecting positive health outcomes. It refers to the deliberate organization of patient care activities between providers, including physicians, nurses, pharmacists, social workers, and other healthcare professionals, to facilitate the appropriate delivery of healthcare services. The primary goal of care coordination is to ensure that patients receive high-quality, timely, and effective care consistent with their preferences, needs, and goals (Squitieri et al., 2020).

One of the key benefits of care coordination is improved patient outcomes. By working together, healthcare providers can better address patients’ complex medical, social, and emotional needs, reducing the risk of adverse events and improving health outcomes. For example, a care coordinator may help patients manage multiple chronic conditions, ensuring they receive timely and appropriate care, including preventive services, regular check-ups, and medication management. This can help prevent complications and reduce the need for costly hospitalizations, improving the patient’s overall health and well-being.

Improved health consumerism is another advantage of care coordination. Patients receiving coordinated care are more likely to feel empowered and engaged in healthcare decisions (Bombard et al., 2018). This can increase patient satisfaction, better health outcomes, and reduce healthcare costs. For example, a care coordinator may work with a patient to develop a comprehensive care plan that includes education about their condition, self-management strategies, and resources for support. Therefore, it ultimately helps the patients to make informed decisions about their care, take an active role in their healthcare, and improve their overall health literacy.

NURS FPX 6612 Assessment 4 Cost Savings Analysis

Care coordination can also help improve data collection and analysis. By working together, healthcare providers can more effectively collect and share patient information, improving care coordination and quality of care. For example, a care coordinator may use electronic health records to track patient information, identify potential problems, and monitor progress over time. This can help identify areas for improvement, reduce medical errors, and promote evidence-based practices.

Apart from that care coordination can promote health consumerism and be useful for positive outcomes. By working together, healthcare providers can better address the complex needs of patients, improve patient outcomes, and reduce healthcare costs. Care coordination also helps patients actively participate in their healthcare decisions, improving health literacy and promoting better health outcomes. Care coordination is critical to ensuring high-quality, patient-centered care that meets the needs of individuals and communities.

Care Coordination Efforts Can Enhance the Collection of Evidence-Based Data

Care coordination is a healthcare delivery approach that involves organizing and coordinating healthcare services and resources for patients to ensure they receive the right care at the right time and in the most appropriate setting. Thus, the implementation of a developing PCMH model, can amplify the acquisition of data based on evidence and boost the quality-of-care coordination efforts. It is also a primary care model that provides patient-centered, comprehensive care to patients (Veet et al., 2020). It promotes preventive care, chronic disease management, and care coordination. The PCMH model has been shown to improve the quality of care, reduce costs, and increase patient satisfaction. In this regard, the following are the five ways through which care coordination efforts can be applied in the PCMH model to enhance the quality and improve the collection of evidence-based data:

1. Firstly, care coordination efforts can lead to improved patient data collection and management. Through electronic health records (EHRs) and digital tools, care teams can effectively and efficiently collect and manage patient data, leading to accurate and timely diagnoses, treatment, and care management.
2. Secondly, collaboration among different care team members is a key aspect of the PCMH model. By working together more closely, care teams can share information and insights, avoid duplication of efforts, and ensure that all team members know the patient’s needs and preferences.
3. Thirdly, care coordination efforts can increase the use of evidence-based guidelines for diagnosis, treatment, and care management. This ensures that care teams incorporate the latest research and best practices into their workflows to provide the highest quality care to their patients.
4. Fourthly, education and patient engagement efforts can also be enhanced through effective care coordination. Care teams can improve patient outcomes and satisfaction by involving patients in their own care and providing them with the necessary information and resources.
5. Lastly, care coordination efforts in a PCMH model can lead to more effective population health management. By tracking patient data and outcomes, care teams can identify trends and patterns that can inform public health initiatives and improve the health of entire communities. Therefore, applying care coordination efforts in the PCMH model can result in better patient outcomes and improved population health.

Conclusion

Cost analysis is crucial for hospitals to identify opportunities for reducing costs without compromising patient care quality. The spreadsheet presented four cost-saving elements for the hospital: switching to LED lighting, implementing an electronic medical records system, reducing staff overtime hours, and using an energy-efficient HVAC system. Care coordination can generate cost savings by providing coordinated care, reducing the length of hospital stays, and providing preventative care and early interventions. It can also improve patient outcomes and health consumerism, empowering patients to make informed decisions about their healthcare. Care coordination can improve data collection and analysis, promoting evidence-based practices and reducing medical errors. Overall, care coordination is a promising strategy for generating cost savings in healthcare while improving patient outcomes, requiring collaboration and effective communication among healthcare providers and the appropriate investments in infrastructure and resources.

NURS FPX 6612 Assessment 4 Cost Savings Analysis

References

Bombard, Y., Baker, G. R., Orlando, E., Fancott, C., Bhatia, P., Casalino, S., Onate, K., Denis, J.-L., & Pomey, M.-P. (2018). Engaging patients to improve quality of care: A systematic review. Implementation Science, 13(1), 1–22.

https://doi.org/10.1186/s13012-018-0784-z 

Hoyer, E. H., Brotman, D. J., Apfel, A., Leung, C., Boonyasai, R. T., Richardson, M., Lepley, D., & Deutschendorf, A. (2017). Improving outcomes after hospitalization: A prospective observational multicentre evaluation of care coordination strategies for reducing 30-day readmissions to Maryland Hospitals. Journal of General Internal Medicine, 33(5), 621–627.

https://doi.org/10.1007/s11606-017-4218-4 

Kripalani, S., Chen, G., Ciampa, P., Theobald, C., Cao, A., McBride, M., Dittus, R. S., & Speroff, T. (2019). A transition care coordinator model reduces hospital readmissions and costs. Contemporary Clinical Trials, 81, 55–61.

https://doi.org/10.1016/j.cct.2019.04.014 

Peikes, D., Chen, A., Schore, J., & Brown, R. (2009). Effects of care coordination on hospitalization, quality of care, and health care expenditures among Medicare beneficiaries. JAMA, 301(6), 603.

https://doi.org/10.1001/jama.2009.126 

Phua, J., Weng, L., Ling, L., Egi, M., Lim, C.-M., Divatia, J. V., Shrestha, B. R., Arabi, Y. M., Ng, J., Gomersall, C. D., Nishimura, M., Koh, Y., & Du, B. (2020). Intensive care management of coronavirus disease 2019 (COVID-19): challenges and recommendations. The Lancet Respiratory Medicine, 8(5), 506–517.

https://doi.org/10.1016/s2213-2600(20)30161-2 

Rawlinson, C., Carron, T., Cohidon, C., Arditi, C., Hong, Q. N., Pluye, P., Peytremann-Bridevaux, I., & Gilles, I. (2021). An overview of reviews on interprofessional collaboration in primary care: Barriers and facilitators. International Journal of Integrated Care, 21(2), 32.

https://doi.org/10.5334/ijic.5589 

Squitieri, L., Tsangaris, E., Klassen, A. F., Haren, E. L. W. G., Poulsen, L., Longmire, N. M., Alphen, T. C., Hoogbergen, M. M., Sorensen, J. A., Cross, K., & Pusic, A. L. (2020). Patient‐reported experience measures are essential to improving quality of care for chronic wounds: An international qualitative study. International Wound Journal, 17(4), 1052–1061.

https://doi.org/10.1111/iwj.13374

Veet, C. A., Radomski, T. R., D’Avella, C., Hernandez, I., Wessel, C., Swart, E. C. S., Shrank, W. H., & Parekh, N. (2020). Impact of healthcare delivery system type on clinical, utilization, and cost outcomes of patient-centered medical homes: A systematic review. Journal of General Internal Medicine, 35(4), 1276–1284.

https://doi.org/10.1007/s11606-019-05594-3