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?
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· 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.
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).
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).
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.
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.
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