Cost Savings Analysis Essay Paper
See attached file for required assessment instruction. Compile your cost savings data in a spreadsheet, using Microsoft Excel. Your spreadsheet should contain at least four cost-saving elements. Then create an executive summary using the APA Style Paper, Requesting Writer Bridgits ID# 2565
Improving Cost Savings with Care Coordination: Executive Summary
Care coordination is the process of getting all the stakeholders that care for a patient to work in harmony as they provide healthcare services to the patient. In so doing, the patient’s preferences are known well in advance and errors of omission or commission are avoided. For instance, it would not be possible with care coordination for one provider to prescribe a medication and another different provider to also prescribe the same medication without knowing (Simmons, 2019; AHRQ, 2018). As a matter of fact, care coordination is the exact opposite of care fragmentation. The role of technology in care coordination in healthcare cannot be overemphasized. Cost Savings Analysis Essay Paper. To this end, informatics knowledge in the context of health information management (HIM) is critical to facilitate care coordination. To be specific, it is the interoperability of electronic health record (EHR) systems that is the backbone of care coordination (McGonigle & Mastrian, 2017). Without this technological possibility, care coordination would be very difficult. The reason is simple – all medical records of patients are now stored electronically as per the law. To access them, therefore, someone from a different organization would need to have some means of connecting to the system of the organization that treated the patient first. Anecdotal evidence as well as scholarly evidence both point to the fact that care coordination saves costs for both the healthcare organization and the patient (Eastman, 2020; Simmons, 2019; Breckenridge et al., 2019). This is an executive summary of the cost saving analysis made with four cost elements in the context of care coordination.Cost Savings Analysis Essay Paper
How Care Coordination Can Generate Cost Savings
There are a number of ways in which care coordination can generate savings. For example, there are repetitive treatments and duplication of therapies that always occurs when there is care fragmentation and the providers seeing one patient are not communicating (Simmons, 2019). In this environment, the healthcare organizations waste resources by duplicating care and the patient spends money twice on the same procedures and treatments. This is money that can be saved if there is care coordination. There is also the risk that the patient can develop serious side effects of medications because two providers have each prescribed the same medication and the patient has taken both. The money used to treat the illness that results from this can also be saved by care coordination.
Lack of care coordination causes burnout and frustration among healthcare staff. This leads to high staff turnover with the requirement that organizations recruit replacement personnel. This costs the organization money which can be saved with care coordination. Last but not least is the cost of medical errors. According to Simmons (2019), costs related to preventable medical errors in the US alone total an average of USD 17 billion annually. This is money that can be saved if care coordination is embraced. My primary evidence-based sources of information include Breckenridge et al. (2019), AHRQ (2018), Simmons (2019), and Eastman (2020). The conclusions drawn are indeed substantiated by data from these sources as indicated above. The assumptions that underlie my analysis are that inflation remains constant and that natural calamities such as pandemics are not present.Cost Savings Analysis Essay Paper
Care Coordination and Improved Health Consumerism
Care coordination can of course promote improved health consumerism. It can also help produce positive health outcomes. This is possible from the fact that care coordination makes it easier for the patient to exercise autonomy as a bioethical principle. There will be knowledge shared among providers concerning the patient’s preferences and each provider will strive to conform to them. Harm will not be caused to the patient when medications are prescribed in repetition because of lack of sharing. In this atmosphere of care coordination, therefore, health consumerism will cease being a nightmare and become an enjoyable experience for patients. The lessening of preventable medical errors by care coordination, for instance, will result in a direct improvement of patient outcomes because there will be no harm caused to patients. The evidence that I have to substantiate my claims relates to the point of preventable medical errors made immediately above. Avoidable medical errors result in an average cost of about $17 billion every year (Simmons, 2019).
Enhancement of Evidence-Based Data Collection by Care Coordination
Care coordination efforts can enhance the collection of evidence-based data through the following five ways:
Care coordination will also improve care quality through the application of healthcare models such as Accountable Care Organizations or ACOs (CMS, 2020). ACOs are groups of providers who join to provide high-quality coordinated care to patients. They operate on the basic principle of care coordination to assure patients of care that is safe, timely, effective, efficient, equitable, and patient-centered.
Analysis of the Elements of Cost Saving with Care Coordination
The four cost saving elements that have been analyzed in the excel spreadsheet as an illustration are:
Treatment costs that accrue as a result of care fragmentation amount to billions of dollars annually. This analysis estimates that each patient would be saving approximately $7,700 annually from unnecessary costs in repeated or duplicate treatment and tests (Eastman, 2020).
Recruitment to replace staff that have left out of inefficiencies caused by care fragmentation costs organizations a lot in fiscal resources. This estimate makes use of the figure provided by Simmons (2019). It is estimated that a savings of $100,000 would be made per employee if care fragmentation were to become the norm.
Agency for Healthcare Research and Quality [AHRQ] (2018). Care coordination. https://www.ahrq.gov/ncepcr/care/coordination.html#:~:text=Care%20coordination%20involves%20deliberately%20organizing,safer%20and%20more%20effective%20care
Breckenridge, E.D., Kite, B., Wells, R., & Sunbury, T.M. (2019). Effect of patient care coordination on hospital encounters and related costs. Population Health Management, 22(5), 406-414. http:dx.doi.org/10.1089/pop.2018.0176
Centers for Medicare & Medicaid Services [CMS] (February 11, 2020). Accountable Care Organizations (ACOs). https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/ACO/index?redirect=/ACO/
Eastman, B. (March 17, 2020). Reduce costs with care coordination. Collective Medical. https://blog.collectivemedical.com/resources/thought-leadership/reduce-costs-with-care-coordination
McGonigle, D., & Mastrian, K.G. (2017). Nursing informatics and the foundation of knowledge, 4th ed. Jones & Bartlett Learning.
Simmons, S. (September 6, 2019). 3 ways care coordination saves your healthcare organization money. Electronic Health Reporter. https://electronichealthreporter.com/3-ways-care-coordination-saves-your-healthcare-organization-money-2/
Cost Savings Analysis Essay Paper