Business Case for a New Economic Opportunity
NURS FPX 6008 Assessment 2 Attempt 1 Developing a Business Case
The role of a master’s-level health care practitioner is crucial in determining factors to analyze the feasibility of new initiatives (Roman et al., 2021). The professionals in our organization have to consider many issues such as patient safety risks, financial risks, or reputation issues; the present and future value of the service line or economic opportunity is crucial for evaluating the success of an investment. This requires professionals to offer good quality of care to protect the organization and its assets. The previous report focused on the creation of a system in the organization for introducing a support system during stressful days. This strategy aims to provide our professionals with a coping mechanism to improve their overall wellbeing and reduce provider turnover. This will lead to greater productivity by avoiding unanticipated patient deaths or near-miss human errors. For that purpose, a new medical care center “Ecosave” is established as a part of a new economic plan to improve the wellbeing of the community and employees of Vila Health Hospital.
Opportunities Related to the Proposed Economic Initiative
This economic and environmental analysis is crucial for measuring the effectiveness and viability of the new opportunities and risks associated with the establishment of Ecosave medical center. Since most Vila Health employees and 15000 workers from other organizations have urgent healthcare needs. This new economic initiative will provide them a chance to get efficient healthcare and help the Vila System to reduce overcrowding in the emergency unit. This means that non-emergent cases can be diverted to Ecosave and where nurses and doctors are readily available to treat injured and sick employees and community members. This will help to meet the community needs in a better and efficient way.
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Moreover, Vila health has an overcrowding problem that requires developing relationships with employees that is hard nowadays. The Vila employees can develop a relationship with Ecosave employees and benefit each other and discuss urgent care issues. According to the analysis of competitors in the same geographical region, there exists one more primary health clinic within seven kilometers of range from Ecosave that raises the competition (Roman et al., 2021). The leaders can solve this problem by adjusting the work hours of professionals in the emergency units to help others relieve from burnout. Therefore, the new system ensures no-appointment schedule for the patients that will make the new economic initiative more accessible for treating minor illnesses (Liu et al., 2019). This will give it the edge over its rivals to address the urgent needs of the community segment.
Ethical and Culturally Sensitive Solutions to Address the Risks
In primary care settings, considering culturally sensitive solutions is imperative as the concept of illness, wellness, sickness, and care (Griffiths et al., 2021).Different people have different knowledge and possess their own cultural beliefs; the people at Vila System may follow different customs and traditional and may have different values. The end goal is to assist healthcare providers to provide improved care services; which is why it is vital to prevent misunderstandings between nurses, doctors, patients, and their families towards forming a racism-free economic environment to reduce disparities.
For example, the first strategy is to embrace the cultural competence in the organization that allows professionals, nurses, and customers to challenge each other’s cultural assumptions and beliefs. Nurses must view cultural competence at an individual level first and raise their skill to identify and challenge others’ cultural assumptions, values, and beliefs. The next strategy is to create an environment of continuous learning process that helps to retain the dynamic attribute of culture to follow cultural competence (Wilkes et al., 2022). This will help to prevent the cultural destructiveness in the company. Finally, cultural defectiveness is important by making treatment programs and interventions according to the expectations of the customers belonging to different ethnic and cultural backgrounds. If the healthcare system fails to create such an environment, the relevance of behavioral services is nullified. This helps to reduce the cultural blindness and incapacity. Therefore, these culturally sensitive strategies and policies will help both Vila System and Ecosave to improve the satisfaction of customers and help employees to build good relationships with stakeholders.
The Analysis the Economic Costs and Benefits of a Proposed Initiative
The analysis of the risks and benefits is crucial at this stage to assess the economic feasibility of setting up the new medical center near Vila Health Hospital. The analysis takes into consideration the present value of the estimated costs and benefits for a time of five years. This calculation also involves measuring the present value discount rate that is 10.9%. Using the standard capital cost, the present value discount rate is calculated by the chief financial officer CFO. The new building also became possible due to minor construction costs, the expenses made for purchasing new furniture, and new equipment costs (Agonic et al., 2019). These costs are roughly projected to be $351,000 for this year and similarly, the operating costs of the new initiative also includes costs such as salaries of employees, utilities bills, gas bills, and the broadband internet expenses. Other operating expenses including marketing expenses and admin costs are also taken into consideration.
The new company Ecosave hired two new full-time physicians and three new nurses as well as other medical staff. The CFO assumes that there are two doctors and three assistants and one receptionist who are also recruited by the Ecosave. The staff salaries are also calculated for the whole year for the first year estimated around $232,000 for the physicians, $113,000 for the nursing professionals, and $36,000 for a medical assistant.
Moreover, as per the US laws, the employees’ salary grows with a rate of 2.7% per annum (). This means that the salaries of Ecosave are expected to rise at a rate of almost 3% annually. The cost of hiring full-time nurse practitioners in the fourth year and hiring a full-time physician in the fifth year will be considered. The utilities expenses will increase almost 5% per year and other operating costs are estimated to be 12% of the annual revenues. Therefore, the cost–benefit analysis shows that for a five-year period, the present value of total costs can be $5,489,745.62 by incorporating a present value discount rate of 10.9%. The revenue is based on the money collected from each customer that is almost 350 customers coming for checkup every week. Hence, the revenue estimated for the first year is $2,730,000 that is expected to grow by 5.3% yearly. The present value discount relates will be 11% while the present value of total benefits is around $11,037,800.03.
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NURS FPX 6008 Assessment 2 Attempt 1 Developing a Business Case
Ethical and Culturally Equitable ways of Keeping Costs under Control
There are strategies followed and planned by the management to avoid the wastage of supplies and other assets to keep the costs under control. Firstly, the nurses and employees are encouraged to use office supplies with discretion. Moreover, the staff must take care that they follow all the new cost control policies and act ethically and morally all the time for the betterment of the organization. In addition to checking the costs, more efforts are being made to improve the benefits received (Moran et al., 2020).This initiative includes sending the automated health reminders to patients and helping them to refer to their nurses at Ecosave when they feel sick or untreated. This strategy of empathy and care will surely help the patients/clients to trust the hospital staff and rely on their caring policies like a family member.
In addition to increasing patient’s safety and loyalty, nurses must also be educated to understand the factors that motivate customers to prefer Ecosave over other healthcare centers to meet their needs. This will help the staff to offer better customize care to everyone that comes to the medical center and leave with full satisfaction. Hence, this can happen when nurses and professionals are able to utilize resources equitably and help the management implement cost control policies effectively. For instance, some overhead costs are not directly associated with healthcare services and they are often significant compared to other minor costs. These overheads can be building maintenance costs, repairs of fixed assets, insurance, and basic utilities costs (Czarism et al., 2020). Hence, a great idea is to control and check the amount spent on building repairs each year and avoid unnecessary repairs. Moreover, handling the medical equipment with care also helps to keep it in a good condition. Finally, the utilities costs can be controlled by keeping the electricity, gas, water, and telephone usage down; this strategy also includes reducing internet costs by using low-cost plans.
References
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Moran, D., Wu, A. W., Connors, C., Chappidi, M. R., Sreedhara, S. K., Selter, J. H., & Padula, W. V. (2020). Cost-benefit analysis of a support program for nursing staff. Journal of Patient Safety, 16(4), e250–e254. https://doi.org/10.1097/PTS.0000000000000376
Agulnik, A., Antillon-Klussmann, F., Soberanis Vasquez, D. J., Arango, R., Moran, E., Lopez, V., Rodriguez-Galindo, C., & Bhakta, N. (2019). Cost-benefit analysis of implementing a pediatric early warning system at a pediatric oncology hospital in a low-middle income country. Cancer, 125(22), 4052–4058. https://doi.org/10.1002/cncr.32436
NURS FPX 6008 Assessment 2 Attempt 1 Developing a Business Case
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