Efficiency In Healthcare - Essay Example

Efficiency In Healthcare Efficiency in healthcare is the measure of how best the available resources transform into available, affordable, accessible services for patients. It is a relationship between input cost, labor, equipment, and capital to the intermediate outputs in relation to waiting time and number of patients treated. It also correlates to the number of lives saved, technological adjustment, reduced life expectancy or quality adjusted life years (QALYs). It is a major facet of priority in any setting that brings together both external and internal factors with the aim of encouraging optimism, technical, emotional and psychological productivity (Greenwald, 2000). Evidently, efficiency in health care is extremely important in any healthcare setting. Efficiency in healthcare extends more than leadership, which is an important element of management in healthcare settings. Efficiency gives limited attention to transactional, transformational, laissez faire or authoritarian leadership styles but focuses on how best, the styles merge in the production of resilient and outstanding services (Hopp & Lovejoy, 2012). Therefore, the paper is a feasibility study of various elements that significantly contribute to the efficiency in healthcare with regards to hospital-at-home care. Hospital-at-home care patients receive medical attention and care from the hospital team designated to look after the patient at their own homes (Lee, 2009). The team normally operates like a hospital ward with a difference in a personalized attention (Modin & Furhoff, 2002). The service presents patients with enhanced support to prevent hospital admission or get the shortest period of admission (Leff et al., 2005). In the contemporary world, acute care hospital is costly and dangerous for older individuals suffering from iatrogenic illness and functional decline (Health Bill, n.d). In this light, offering acute hospital-level care is a convenient option for hospital care. According to the U.S. Centers for Medicare and Medicaid Services, nearly 75% of hospital re-admissions are potentially avoidable through hospital-at-home care services. Patients under the program get enhanced follow-up care and efficient communication (Leff et al., 2005). A feasibility study of efficiency in healthcare focuses on various aspects, Evaluating feasibility To effectively achieve efficiency in any healthcare setting, it is imperative to undertake an evaluation of feasibility, as a primary step to smooth operations. Any viable project must be able to prove beyond reasonable doubt that it is designed to address the anticipated objectives. Evaluating feasibility involves monitoring the “worth to the effort” ratio or cost benefits analysis of the healthcare proposal. Any health care project must be able to offer more benefits but sustain limited effects. Hospital-at-home care, for instance, has various benefits ranging from efficient emergency access, nursing support, home based physicians and quarantined patients consent as well as eligibility (Lee, 2009). The healthcare initiative, however, faces challenges of potential delirium in service production as well as competition from traditional models, which can be solved with continued aggressive reforms. The cost of setting up any healthcare programs should not exceed the maximum threshold to contain the margin of operation. This is a key to efficiency. Arguably, the return of capital invested plays a key role in ensuring future of any health care initiative. Capital investment in any healthcare setup revolves around community needs, human resources, federal and state regulatory issues, and technological advances. In essence, evaluating feasibility is a function of operational possibility, economic requirements and technological capabilities (Hopp & Lovejoy, 2012). It is about quality, rules, knowledge, skills, time, and most importantly the cost. Conceivably, most projects fail to reach the threshold of efficiency due to inability to conduct an evaluation of feasibility despite being a viable tool. Strategic Effect The healthcare setting has various stakeholders all of which plays a pivotal function in shaping the landscape of health services. They are responsible for developing public policies that direct providers on the best way to remain relevant and efficient. An effective healthcare program should have several policies and processes. Since many patients have a problem meeting payment costs for home treatment. Priorities will be in insurance policies. Implementing hospital-at-home care without consistent policies or none-on willing patients becomes difficult. An insurance guarantee program, therefore, is necessary to directly pay hospitals for different services offered to patients (Davis & Guterman, 2007). Whether private or public insurance program should offer benefits and protect patients from the lifetime and annual challenges. It is also vital to increase the human resource and other healthcare professionals responsible for administering personalized treatment to indoor patients (Lee, 2009). Evidently, a limited number of patients with no logistical support strain the available resources hence limiting the efficiency of services within the healthcare. In as much as the changes are inevitable, it is vital to reform within the Patient Protection and Affordable Care Act (PPACA) that focus on quality, accessibility and cheap care for all patients (United States Department of Labor, 2014). The US Centers for Medicare and Medicaid Services (CMS) reports that most patients undergoing home based treatment prefer payment for telemedicine. The payment problems are also recognized by John Hopkins models of hospital efficiency that recommends home treatment for adults. John Hopkins models attach efficiency to satisfaction and willingness to pay. Therefore, to guarantee efficiency it is vital to reflect not only the role but also focus on payment techniques available. Market analysis Most healthcare facilities are operated by the private sector while public care insurance sources from the government. The Obama care or Patient Protection and Affordable Care Act (PPACA) passed to the law in 2010 offers an array of benefits including hospitalization, prescription, emergency care, maternity, and newborn care. It also gives attention to non-grandfathered plans accosted by yearly checkups, counseling, screening, and immunization with no out of pocket costs. Statistically, over 100 million people have benefited from the program and billions of dollars saved by closing Medicare part D. many Americans are expected to obtain market place insurance. Notably, 60-65% of healthcare spending and provision comes from Medicaid, Medicare, the Children Health Insurance Program, the Veterans Health Administration and TRICARE (Rice, 1997). Additionally, a major part of the population under 65 years of age is either insured by their employers or family. Some also buy insurance for their own safety, which in most cases do not run inconsistency according to the National Institutes of Health. In 2013, the healthcare sector faced various problems ranging from infant mortality, sexually transmitted infections, homicides, lung and heart disease and a high rate of disability. The Agency for Healthcare Research and Quality (AHRQ) maintains that there is over 38 million hospital stays an increase of 11% from 1997 (Lee, 2009). The conditioned is worsened by 2010 US Census bureau statistics, which reports that over 49.8 million residents remained uninsured (United States Department of Labor, 2014). The World Health Organization reports show that the US Spends more of healthcare per capita as compared to any other country. Offering a hospital-at-home care, therefore, reduce cost and minimize unnecessary confusion hence promoting efficiency in healthcare (Hopp & Lovejoy, 2012). Financial analysis Hospital-at-home care creates a landscape for fairness, efficiency, access, quality, and value. For efficiency, funding of the program is likely to come from various sectors and stakeholders (Korda & Eldridge, 2011). Considering the anticipated change and impact it will have on the country, the government will be the chief financier through taxes, incentives, subsidies, and grants. Evidently, funding will not take a direct route, but an indirect channel through insurance programs and hospital accessories that guarantee patient’s benefit. Nonetheless, the program will roll on finance from private insurance companies, which mainly deal with indoor health complications such as cancer and diabetes. Funding from private health facilities ordinarily includes the provision of equipment and logistical support that render hospital-at-home care efficient (Davis & Guterman, 2007). They also include co-payments and insurance premiums payable to patients to facilitate their efficient growth. Most importantly, the program will also rely on out-of-pocket payments and independent healthcare plans that have the same goal of promoting efficiency in healthcare. Donor funding will also be inevitable in an attempt to promote efficiency in the important field. In as much as all the sources of funding guarantees sustainability, relying on donors, grants or insurance at times prove uncertain due to medical complications. SWOT analysis of continued initiation of hospital-at-home care shows threat from financial deformity and uncertainty but has several opportunities and strengths. For example, the program runs from the already established medical systems hence not from scratch. However, it is likely to be limited to high-class individuals who can pay for insurance and other associated costs (Lee, 2009). Nonetheless, there is an opportunity to reform costs and logistical support that allows overall and equal treatment. Fixed cost will account for over two-thirds of the general budget while variable cost will shift depending on the volume of business. Some of the anticipated fixed costs include Rent and mortgage, Utilities such as electricity and alarm systems, Phones, Leases of medical equipment, Insurance, and depreciation. On the other hand, variable costs will include payroll constituents like bonuses, tax match, annual raises and retirement plans. Furthermore, additional licenses, medical equipment, consumables, staff education, and advertisement will fall into the variable costs. Based on assessments, annual maintenance and operational costs are approximate $400 billion considering the high number of uninsured and based on Medicare budgetary allocations (United States Department of Labor, 2014). Operations performance Transactional leaders insist in rewards or punishment for performance while transformational leaders rely on motivation if well implemented hospital-at-home care is likely to change the general healthcare landscape (Davis & Guterman, 2007). By favoring insurance as a means of transaction, the program can reduce the high number of uninsured by half (Rice, 1997). The important change will not only reflect in the insurance fraternity but also health outcomes. The program in this regards is likely to reduce the impact of progressive diseases that has reduced life expectancy in United States (Arrow, 1963). It is noteworthy that diseases such as Diabetes, Cancer, and Schizophrenia are likely to have no place within the United States with the implementation of hospital-at-home care. The program is likely to reduce congestion in hospitals and strain on available resources (Hopp & Lovejoy, 2012). Although expensive in the short run, but offers a bright future in the long run characterized by reduced costs and efficiency in the delivery of services. Arguably, logistical support remains a serious problem at the onset of the program. In addition, patients are likely to require conditional services, which may be costly. However, appropriate communication with the government and appropriate stakeholders is a primary step towards eliminating the protruding challenges at the early stages (Lee, 2009). Notably, efficient operation of the program proves worthwhile through legislative support that ensures all people maintain the inclusive program. Many people fail to recognize even what is important for other factors excluding costs. In this light, it is vital to streamlining operations through legislative policies. Inpatient Hospital-at-home care requires a control center for efficient operations. The control center has record of patients, staff and other logistical equipment important for healthcare operations. In case of complications such as trauma, it must be able to rush patients to intensive care units and perform immediately required services. The hospital-at-home care anticipated is a complete and enclosed system of operation that guarantees sufficient care within human abilities. It, therefore, must have an inpatient service that promotes a one roof service provision. In addition, most patients under hospital-at-home care face discharge from hospitals. In order to promote efficiency, it is important to operate an inpatient department that assesses the current state, eligibility, and proximity of being placed house follow-up treatments. Evidently, over 39 million inpatient cases are recorded annually with an annual cost of $387 billion (United States Department of Labor, 2014). This is an evidence of medical complications that require an inpatient sector in every medical program for efficiency. Outpatient Outpatient patients visit hospitals, clinics, and other healthcare fraternities but do not stay overnight for other services. Either, they do not have serious medical conditions or get appropriate diagnosis hence prescription. Contrary in patients who may be suffering from complications such as coma and have to be admitted for days or weeks, outpatients do not sleep in health fraternities. In as much as perfection is not guaranteed hence limited errors, studies show that over 98,000 people die of preventable diseases. This does not call for the focus on inpatient but external services that facilitate efficient delivery of services. Hospital-at-home care is majorly an improvised outpatient system that allows patients to access services at proximity. To effectively implement hospital-at-home care able patients can access medication and prescription at their convenience (Lee, 2009). Additionally, not able patients must not walk to hospitals as this may worsen their conditions. The threshold of efficiency in hospital-at-home care relies on the ability to complement the already existing medical framework. It stems from the ability to of the healthcare program to sustain all the necessary requirements while preferring patient requirements. Arguably, hospital-at-home care is a complement of Affordable care Act. Undeniably, it is a primary initiative aimed at motivating outpatient care setting and promoting preventative models of relieving the much strain in healthcare. Outlook The long term implication of hospital-at-home care opens gates for serious reforms where health will move from a public affair to a private initiative (Hopp & Lovejoy, 2012). It is an initiative that clearly creates success in health medication through continued insurance and support from the government. The health behavior theory suggests that health promotional theories lead to the reduction of disease risks, chronic illness and improve the general well being of people, organizations, families, and communities (Rice, 1997). However, not all health programs prove successful in the healthcare landscape. Therefore, to effectively and efficiently implement the program, it is vital to promote a clear understanding of environmental context and targeted health behaviors. Meaningful evaluation is also necessary to explain and adopt appropriate techniques for handling diverse challenges. The change theory spells how ideas can be converted to strategies and ultimately concepts of action. It also brings on board explicit assumptions necessary for implementation of any program in healthcare. Therefore, for efficiency in the implementation of the program, it is vital to develop both interactive and multi-disciplinary approaches that merge interpersonal, institutional, community and public policy. Conceivably, knowledge is indispensable, but not sufficient, the Baylor Hospital in Houston wasted over 250 million due to non-cognisant initial examination. The proposed program is complimentary to the Obama care, supportive of existing practices and responsive to changing healthcare demands (United States Department of Labor, 2014). It clears way for population changes of general Y and gives room for expansion through globalization of equipment. In conclusion, The Affordable Care Act (ACA) has a number of growth opportunities for hospital-at-home care (Lee, 2009). ACA, for instance, stipulates that hospitals re-admitting excess patients soon after discharging risk losing Medicare support unless they can improve their patient outcomes (Leff et al., 2005). In essence, the hospitals should focus on hospital-at-home health services as a method of guaranteeing quality follow-up care and proper monitoring (Lee, 2009). Hospital-at-home services are essentially patient-centered and are normal for a sick individual to opt for her own residence. Hospital-at-home care plays a significant role in reducing spending (Lee, 2009). According to the Center for Disease Control (CDC), over 17.8 million people in the United States got diagnosed with diabetes type 2 in 2008 representing 90% of all cases (Lee, 2009). Conceivably, a sum of $92 billion in direct medical expenses , to diabetes for 2009, and the projected rise in the number of people living with diabetes proposes that years direct costs could attain $138 billion by 2020 (Lee, 2009). 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