I've attached a final milestone template for everyone to use! The template follows the final rubric and is already formatted with the headings, font, and other formatting items.
The final paper help document pulls all the information from the rubric and directions together. You can use this information to tweak any information from your other submission and plug right into the template.
Please use your previous papers that were created in this class only, and revise as needed to plug into the template for your final paper. Milestone 1 was absorbed into Milestone 3. Please do not have a long introduction that is basically Milestone 1. The introduction is simply 3-5 sentence that introduces the topic. The conclusion is simply 3-5 sentences that summarizes the main points.
What to Submit
Your report should be in APA format and all resources and references should be cited appropriately. The number of pages is not as important as the content and quality of communication; however, a well-written, concise report will likely fall within the range of 8–15 pages, not including references and title page.
Attached is is:
rubric, final paper template, final paper help, miletones 1-3
8/30/23, 11:14 AM Assignment Information
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IHP 620 Final Project Guidelines and Rubric
Overview
The healthcare industry is impacted by economic factors as heavily as any other industry; therefore, a microeconomic and macroeconomic perspective is important for healthcare management
professionals to have. The key is to determine what and how theories of economics and changes in legislation will impact healthcare organizations. Your assessment for this course, a policy
research and organizational analysis report, is divided into two parts. The �rst is an analysis of microeconomic and macroeconomic principles and their impact on healthcare markets,
healthcare service, and organizations. The �rst part will require you to apply the knowledge you have gained throughout this course, as well as to research current economic environments and
legislative changes to gauge the impact on the healthcare industry. The second part will require you to apply the results of your analysis from the �rst part to a U.S.-based healthcare
organization of your choice, as you discuss the impact of economic theories and legislative changes on the speci�c organization. You will make a few general recommendations for your selected
organization that will help them plan for and mitigate negative economic and �scal impact. These assessments will allow you to examine the relationships between economics, legislative
changes and policies, healthcare industries, and individual organizations, a skill that will bene�t you as you participate in the management of healthcare departments, organizations, and
projects.
You will select an organization for your second assessment and use the following resources to ensure that you will have access to the healthcare organization’s �nancial information:
DBHoovers, ProPublica, or American Hospital Directory. You will choose your organization in Milestone One for instructor approval.
This assessment addresses the following course outcomes:
Analyze how organizations utilize key microeconomic and macroeconomic principles to guide strategic planning and decision making in healthcare
Differentiate between nonpro�t and for-pro�t healthcare organizations in terms of monetary and �scal policy
Analyze healthcare �nancial statements through the application of demand theory and market behavior
Determine the impact of key economic legislative changes on healthcare policy
Analyze the relationship between economic policy and disparities in healthcare utilizing current research
Prompt
Your policy research and organizational analysis should answer the following prompt: What is the relationship between economic policy changes, the market, and availability of healthcare?
How does this relationship impact speci�c organizations? Why do organizations in healthcare utilize economic and �nancial theories to guide strategic planning, and how do these actions
impact disparities of care?
Speci�cally, the following critical elements must be addressed:
I. Introduction: What is the purpose, scope, and subject of your report?
II. Economic Theories and Principles:
A E i Di iti A l th l ti hi b t th � i l ll b i f th i d t d il bilit f h lth i id ti f k t d d d th i
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A. Economic Disparities: Analyze the relationship between the �nancial well-being of the industry and availability of healthcare, in consideration of market and demand theories.
B. Economic Theories: What economic theories are most useful when applied to the healthcare industry and why?
C. Use of Economic Principles: Why do organizations utilize economic principles to guide strategic short-term and long-term decision making?
III. For-Pro�t and Nonpro�t:
A. Financial Differentiation: What differentiates for-pro�t and nonpro�t healthcare organizations �nancially? What characteristics of each type of healthcare organization make
the organizations different?
B. Economic Differentiation: What differentiates for-pro�t and nonpro�t healthcare in terms of economic policies and legislation? What key recent and current economic
policies impact each?
IV. Policy, Changes, and Disparities:
A. Economic Policy and Disparities in Care: Using current research and information (within the last �ve years), analyze the relationship between economic policy and disparities
in care. How are they connected? How do they differ?
B. Policy Changes: What impact do recent legislative changes have on healthcare economic policy in general?
C. Disparities Planning: Why are disparities of care factored into healthcare strategic planning? Explain your reasoning and provide examples for support where appropriate.
V. Organizational Impact and Recommendations:
A. Organization Introduction: What organization is the focus of your report, the sub-industry or type of organization it belongs to (home care, hospital, etc.), and what is the
�nancial background of the organization?
B. Nonpro�t or For-Pro�t: Is the organization you selected a nonpro�t or a for-pro�t? What differences will this make in terms of economic policy impact?
VI. Financials, Market, and Demand:
A. Demand Theory: Explain how demand theory is re�ected in the organizational �nancial statements.
B. Market Behavior Impact: Explain how and why market behavior affects the �nancial statements at various times throughout the calendar year for your organization.
VII. Economic Legislative Changes:
A. Legislative Changes: Considering the economic and legislative changes you researched, what changes are most likely to impact your organization, and why?
B. Policy Changes and Impact: Considering the legislative changes and type of organization you have selected, what possible organizational policies may result? Discuss the
possible resulting policy changes that may occur within the organization. What is, or will be, the impact of these policy and legislative changes on your organization?
C. Statement Impact: In what ways would you expect to see the �nancial statements to be impacted because of these changes, and why?
D. Potential Disparities: Would the legislative changes cause disparities in care that could further impact your organization, or that your organization could plan to combat? How
would you recommend planning for these?
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Milestones
Milestone One: Propose Organization for Analysis
In Module Three, you will select the organization you would like to analyze in part two of the �nal project using the resources provided.. You will present your proposal to the instructor for
approval to ensure that you will have access to suf�cient �nancial information on the healthcare organization to complete the �nal project. This milestone is graded with the Milestone One
Rubric.
Milestone Two: Policy Research
In Module Five, you will submit a draft of your policy research report. You will apply the knowledge you have gained through the �rst half of the course, as well as research current economic
environments and legislative changes, to gauge the impact on the healthcare industry through this report. This milestone is graded with the Milestone Two Rubric.
Milestone Three: Organizational Analysis
In Module Seven, you will submit a draft of your organizational analysis report. You will apply the economic principles you have examined through this point in the course to your chosen
organization in this report. This milestone is graded with the Milestone Three Rubric.
Final Submission: Policy Research and Organizational Analysis Report
In Module Nine, you will submit your �nal project. It should be a complete, polished artifact containing all of the critical elements of the �nal product. It should re�ect the incorporation of
feedback gained throughout the course. This submission will be graded with the Final Project Rubric.
What to Submit
Your report should be in APA format and all resources and references should be cited appropriately. The number of pages is not as important as the content and quality of communication;
however, a well-written, concise report will likely fall within the range of 8–15 pages, not including references and title page.
Final Project Rubric
Criteria Exemplary (100%) Pro�cient (90%) Needs Improvement (70%) Not Evident (0%) Value
Introduction Meets “Pro�cient” criteria and
description is concise, without
super�uous detail, or the
quality of the introduction
establishes expertise in the
subject
Describes clearly the purpose,
scope, and subject of the report
Describes the purpose, scope,
and subject of the report, but
with gaps in clarity or detail
Does not describe the purpose,
scope, and subject of the report
5.7
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Criteria Exemplary (100%) Pro�cient (90%) Needs Improvement (70%) Not Evident (0%) Value
Economic Disparities Meets “Pro�cient” criteria and
analysis demonstrates strong
analytical skills through
nuanced comparison of
theories
Accurately analyzes the
relationship between the
�nancial well-being of the
industry and availability of
healthcare, using market and
demand theories as support
Analyzes the relationship
between the �nancial well-
being of the industry and
availability of healthcare, but
without market and demand
theory support or with gaps in
accuracy
Does not analyze the
relationship between the
�nancial well-being of the
industry and availability of
healthcare
5.7
Economic Theories Meets “Pro�cient” criteria and
the quality and detail of the
conclusions evidences keen
insight into the application of
economic theory within the
healthcare environment
Determines what economic
theories are most applicable to
the healthcare industry and
explains conclusions in detail
Determines economic theories
that are applicable and explains
why, but lacks detail or
accuracy
Does not determine economic
theories that are applicable or
explain why
5.7
Use of Economic Principles Meets “Pro�cient” criteria and
explanation evidences keen
insight into the economic
impact of organizational
planning
Logically explains why
individual organizations utilize
economic principles for short-
term and long-term strategic
planning
Explains why individual
organizations utilize economic
principles for short-term and
long-term strategic planning,
but with gaps in logic or detail
Does not explain why individual
organizations utilize economic
principles for short-term and
long-term strategic planning
5.7
Financial Differentiation Meets “Pro�cient” criteria and
comparison evidences keen
insight into the �nancial needs,
requirements, and impacts on
and for the two types of
organizations
Accurately differentiates
between for-pro�t and not-for-
pro�t healthcare organizations
in terms of �nances and
organizational characteristics
Differentiates between for-
pro�t and not-for-pro�t
healthcare organizations, but
not in terms of �nances and
organizational characteristics,
or with gaps in accuracy
Does not differentiate between
for-pro�t and not-for-pro�t
healthcare organizations
5.7
Economic Differentiation Meets “Pro�cient” criteria and
comparison evidences keen
insight into the nuanced
relationships between the type
of organizations and economic
policies and legislation
Accurately differentiates
between for-pro�t and not-for-
pro�t healthcare organizations
in terms of economic policies,
legislation, and recent changes
Differentiates between for-
pro�t and not-for-pro�t
healthcare organizations, but
not in terms of economic
policies, legislation, and recent
changes, or with gaps in
accuracy
Does not differentiate between
for-pro�t and not-for-pro�t
healthcare organizations
5.7
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Criteria Exemplary (100%) Pro�cient (90%) Needs Improvement (70%) Not Evident (0%) Value
Economic Policy and
Disparities in Care
Meets “Pro�cient” criteria and
analysis evidences keen insight
into the nuances of and varied
in�uences on the relationship
between economic policy and
care
Accurately analyzes the
relationship between economic
policy and disparities in care,
using current data
Analyzes the relationship
between economic policy and
disparities in care, but with
gaps in accuracy, or without
using current data
Does not analyze the
relationship between economic
policy and disparities in care
5.7
Policy Changes Meets “Pro�cient” criteria and
determinations provide a broad
view of healthcare economic
policy within the current
environment
Accurately determines the
impact recent legislation
changes have had on economic
healthcare policies in general
Determines the impacts recent
legislation changes have had on
economic healthcare policies,
but with gaps in accuracy or
detail
Does not determine the impact
recent legislation changes have
had on economic healthcare
policies
5.7
Disparities Planning Meets “Pro�cient” criteria and
description effectively ties the
explanation to the real world
using examples and relevant
sources for support
Accurately describes why
disparities of care are factored
into healthcare strategic
planning with examples for
support
Describes why disparities of
care are factored into
healthcare strategic planning,
but with gaps in accuracy or
support
Does not describe why
disparities of care are factored
into healthcare strategic
planning
5.7
Organization Introduction Meets “Pro�cient” criteria and
description is concise by
delivering key elements
without super�uous detail
Accurately and in detail
describes the selected
organization, sub-industry, and
�nancial background
Describes the selected
organization, sub-industry, and
�nancial background, but with
gaps in accuracy or detail
Does not describe the selected
organization, sub-industry, and
�nancial background
5.7
Nonpro�t or For-Pro�t Meets “Pro�cient” criteria and
summary evidences ability to
translate the larger view of
economic impact in healthcare
to the level of a speci�c
organization
Determines whether the
organization is for-pro�t or
nonpro�t and accurately
summarizes the impact this fact
will have in terms of economic
policy
Determines whether the
organization is for-pro�t or
nonpro�t and summarizes the
impact this fact will have in
terms of economic policy, but
with gaps in detail or accuracy
Does not determine whether
the organization is for-pro�t or
nonpro�t or summarize the
impact this fact will have in
terms of economic policy
5.7
Demand Theory Meets “Pro�cient” criteria and
evidences keen insight into
appropriate application and use
of demand theory for a
particular organization
Accurately describes how
demand theory is re�ected in
the organizational �nancial
statements
Describes how demand theory
is related to the �nancial
statements, but with gaps in
accuracy or detail regarding
how the statements re�ect
demand theory
Does not describe how demand
theory is related to the �nancial
statements
5.7
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Criteria Exemplary (100%) Pro�cient (90%) Needs Improvement (70%) Not Evident (0%) Value
Market Behavior Impact Meets “Pro�cient” criteria and
explanation evidences keen
insight into the nuanced
relationship between market
behavior and �nancial impacts
to an organization
Accurately explains how
market behavior impacts the
�nancial statements of the
organization at various times
throughout the year, and
explains why
Explains how and why market
behavior impacts the �nancial
statements of the organization
at various times throughout the
year, but with gaps in detail or
accuracy
Does not explain how and why
market behavior impacts the
�nancial statements of the
organization at various times
throughout the year
5.7
Legislative Changes Meets “Pro�cient” criteria and
evidences keen insight into how
the current economic
legislation changes will impact
organizations
Accurately determines and
explains the recent economic
legislative changes that would
most likely impact the selected
organization
Determines and explains the
recent economic legislative
changes that would most likely
impact the selected
organization, but with gaps in
accuracy or detail
Does not determine and explain
the recent economic legislative
changes that would most likely
impact the selected
organization
5.7
Policy Changes and Impact Meets “Pro�cient” criteria and
evidences keen insight into the
nuanced impact of legislative
changes on healthcare
organizations
Logically determines the impact
the recent legislative changes
will have on the selected
organization and its policies,
with supportive detail
Determines the impact the
recent legislative changes will
have on the organization and its
policies, but with gaps in logic
or supporting detail
Does not determine the impact
the recent legislative changes
will have on the organization
and its policies
5.7
Statement Impact Meets “Pro�cient” criteria and
evidences keen insight into the
facets and factors that
in�uence �nancial statements
Accurately describes how the
�nancial statements are
impacted based on the
legislative and policy changes
Describes how the �nancial
statements are impacted but
lacks accuracy or necessary
detail regarding legislative and
policy changes
Does not describe how the
�nancial statements are
impacted
5.7
Potential Disparities Meets “Pro�cient” criteria and
evidences keen insight into the
continuously evolving
healthcare environment or the
unpredictable impacts of
legislation on speci�c
organizations and availability of
care
Recommends logical methods
to plan for legislative and
policy-driven disparities in care
to prevent further
organizational impact
Recommends methods to plan
for legislative and policy-driven
disparities in care, but they
would not logically prevent
further organizational impact
Does not recommend methods
to plan for legislative and
policy-driven disparities in care
5.7
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Criteria Exemplary (100%) Pro�cient (90%) Needs Improvement (70%) Not Evident (0%) Value
Articulation of Response Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented
in a professional and easy-to-
read format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
3.1
Total: 100%
,
IHP-620 Course Paper 2
Title
Name
Class
Date
Title of the Paper
Introduction
Economic Theories and Principles
Economic Disparities
Economic Theories
Use of Economic Principles
For-Profit and Nonprofit
Financial Differentiation
Economic Differentiation
Policy, Changes, and Disparities
Economic Policy and Disparities in Care
Policy Changes
Disparities Planning
Organizational Impact
Organization Introduction
Nonprofit or For Profit
Financials, Market, and Demand
Demand Theory
Market Behavior Impact
Economic Legislative Changes
Legislative Changes
Policy Changes and Impact
Statement Impact
Potential Disparities
Conclusion
References
,
1
Your organization needs to be an acute healthcare facility, such as a hospital. A few good
hospitals to use are Johns Hopkins, St. Jude’s, and Mt Sinai. You must be able to access public
financial information via their published reports/community communications. You cannot use
the American Health Act (ACA, Obama Care) as that is our healthcare system. You need to look
at economic legislation that impacts our healthcare system such as CHIP, HITECH, HIPAA,
Anti-fraud, Anti-monopoly laws and others. Please use the newest version for your choice.
Please use your organizations website as the main source for information and financial
information. Financial information is a source for financial information and trends. You can also
use the communication to the community and press releases for various information related to
your facility. For the rest of the paper please use appropriate websites, such as the organizations
website, and published research.
Review the final paper rubric. I have combined all the aspects from Milestones 1, 2, 3
into this one help document. The main rubric is the final rubric for the paper. The comments in
purple are my comments and further explanation.
APA guidelines are to cite all your materials. Almost every sentence will be cited. Times
New Roman, 12 font, black colored font, double spaced, cover page and reference page are
needed. There needs to be 3 sentences to make a paragraph. A few suggestions- keep the same
few example(s) throughout the paper. That helps to make the paper more cohesive and ties the
info together.
Economic Theories and Principles
Economic disparities
If you remember from our readings, economic disparities are a difference in measures of
economic well-being among individuals within the community. Discuss this topic in general. Do
not use your facility for this section. What does your community reflect? Analyze the
relationship between your community’s health care disparities and the financial well-being of the
healthcare industry in the area and availability of healthcare. In other words, how much
healthcare is available based on a community's wealth? You can either generalize the discussion
or use a specific geographical area as your example. For example, I could discuss the topics
generally on a federal level. Or, I could discuss this information based on my home town.
2
Economic theories
Look at your top 1-2 economic theories that can be applied to the healthcare industry and
then the rationale why. Provide a Health-related example. Apple Inc is not a healthcare
organization. Examples include supply/demand, scarcity, and opportunity cost. There are quite
few to use in your book too!
Use of economic principles
How to hospitals, in general, use strategic planning to make short- and long-term goals?
What is the process? Add an short example of each goal.
For-Profit and Nonprofit
Financial differentiation
Logically analyze the differences between for-profit and nonprofit healthcare organizations
financially. What are some specific characteristics that make the organizations different? Keep
for-profit and nonprofit in separate paragraphs. Be sure to show characteristics that are similar and
different. Economic differentiation
Utilizing an economic policy, state how non and for profit react to it. For example, how
would a non-profit facility react to the newest CHIP legislation? How would a for-profit react to
the newest CHIP legislation. You can use your legislation from your SWOT. For example non
and for profit would react the same to the CHIP Legislation.
Policy, Changes and Disparities
Economic policy and disparities in care
Using current research from the last five years analyze the relationships/connections and
differences in two paragraphs. How are healthcare economic policies and healthcare disparities
connected? Focus in on one disparity connected to your healthcare policy. What connects these
two areas? You can use a health-related example.
How are these entities different? What doesn’t connect? Use the same example.
Policy changes
What impact can recent legislative changes have on the economic policy in healthcare in
general? You cannot use the ACA as that is our healthcare system. We are focused on economic
legislation that affect our ACA. What is a piece of legislation that affects healthcare? You can
3
use your legislation from your SWOT, explain what the legislation is supposed to do and how
your legislation has impacted healthcare in general.
Disparities planning
How are disparities of care factored into health care strategic planning for various
healthcare organizations? In other words, why do hospitals use strategic planning to pay for
healthcare disparities?
Organizational Impact
Organization Impact
Propose your choice of hospital and rational. Do not use 1st person. Describe in detail the
hospitals mission. What is the industry or purpose? For example, St. Jude’s is a non-profit
hospital whose mission is to provide care to pediatrics with specific cancers at no further cost to
the parents (St. Jude’s, 2021). No direct quotes but summarize and cite the information using the
hospitals website.
What are the sub-industries? For example, St. Jude’s also has a huge research center
linked to their mission of curing cancer in pediatric patients (St. Jude’s, 2021).
What is the hospital’s financial background? Find 1-2 specific examples of the yearly
income and expenses. Is the facility solvent? What do the numbers mean? Do not add any charts.
Nonprofit or For Profit
Is the organization you selected a nonprofit or a for-profit? What differences will this
make in terms of economic policy impact? What is your organization’s tax status? How is your
healthcare facility affected by economic legislation based on their tax status?
Demand Theory
Accurately describe how the demand theory is reflected in the hospital’s financial
statements. Answer the question: How do you know your facility is in demand? This may take a
little bit of reasonable deduction when reviewing the yearly financials of the hospital. For
demand, you can look for new services being provided or a new building going up to better serve
the community. Has there been an increase in patient services in a particular area? Etc.
You can find this information sometimes in the communication to the community, press
releases and Google. For example, “Google Johns Hopkins Bulletins” and many sites show up
including the library at JH where all the bulletins are stored. You can search that JH data base.
Market Behavior Impact
4
Explain how the market behavior of the healthcare industry impacts the financial
statements of the organization at various times throughout the year and the rationale for these
yearly fluctuations. One area to look at is fundraising and any published pro-bono work.
Fundraisers bring money in [income]; whereas, pro-bono cases cause spending of money
[expenses]. You can also look at the publications for the community. Again, you can Google
your facility and “yearly changes” and see what pops up!
Economic Legislative Changes
Legislative Changes
Considering the economic and legislative changes you researched, what changes are most
likely to impact your organization, and why? Utilizing your SWOT legislation explain how that
policy has affected your facility. Provide a good example. Again, do not use the ACA.
Policy Changes and Impact
Then using the economic policy/legislation above, what was an internal policy that
needed to change to be compliant with that law?
Statement Impact
Continuing with the same economic policy, how does the policy affect the financial
statements of your organization? Add in an example or two from your organization for your
example.
Potential Disparities
Continuing with the same economic policy, what is a specific healthcare disparity that
was created? Provide a well-developed recommendation to fix the healthcare disparity using
evidence-based research.
Conclusion
5
References start on the next page
,
2
Milestone One
Deanna Buchanan
SNHU
IHP-620-Q5565
Based on the data in the sources, the topic of this study is Memorial Health System, a healthcare organization (Memorial Healthcare System, 2023). Well-known healthcare organization Memorial Health System provides various medical services to its neighborhood. When the business's sub-industry is examined, a hospital or healthcare system offering full medical treatment might be identified as the organization. With a significant presence in the healthcare industry, the company will likely face the financial possibilities and risks of doing business in this vital and dynamic area.
According to the material gathered during Module Two's investigation, Memorial Health System is a nonprofit organization. Memorial Health System was identified as a nonprofit hospital for Financial Assistance, according to a report by Romano (2022), which affirmed the facility's nonprofit status. Nonprofit enterprises, like Memorial Health System, often provide services to their local communities and invest any profits into the business to enhance its operations, facilities, and patient care.
Economic concepts like demand and market/consumer behavior can greatly impact Memorial Health System's financial statements as a healthcare provider. For instance, the company could see a rise in sales throughout particular seasons or times of the year. For instance, the rise in injuries and accidents caused by ice and other weather-related mishaps during the winter may result in a jump in income. Additional elements, including demographic changes, population health, and healthcare policy, may also impact the organization's financial accounts. For Memorial Health System to efficiently manage its resources, create budgets, and maintain financial stability, it is essential to comprehend and respond to these economic concepts. As a notable hospital serving its community, Memorial Health System is a nonprofit healthcare institution.
References
Memorial Healthcare System. (2023). Leadership and Board of Commissioners. Memorial Healthcare System. https://www.mhs.net/about/leadership#:~:text=Memorial%20Healthcare%20System%20is%20a,board%20appointed%20by%20the%20Governor.
Romano, L. (2022, July 6). Memorial Health named as a nonprofit hospital for Financial Assistance. NowDecatur.com. https://nowdecatur.com/2022/07/06/memorial-health-named-as-a-nonprofit-hospital-for-financial-assistance/
,
MILESTONE TWO 2
Milestone two assignment
Deanna Buchanan
SNHU
IHP-620
Dr. Karem Myers
Milestone two assignment
Economic Theories and Principles
Economic Principles:
In healthcare, economic disparities can manifest as differences in access to healthcare services, quality of care, and health outcomes based on an individual's socioeconomic status or location (Donkin et al., 2018). Due to financial barriers, communities with lower economic well-being may face challenges in accessing adequate healthcare services. For example, low-income communities may have limited access to primary care physicians, specialists, or hospitals in their vicinity. The availability of healthcare resources may also be influenced by the local economy, with economically disadvantaged areas having fewer healthcare facilities and providers (Donkin et al., 2018).
Economic Theories:
One economic theory applicable to the healthcare industry is the theory of supply and demand. Healthcare services, like any other goods or services, are subject to the forces of supply and demand (Tzenios, 2019). When demand for healthcare services increases, there is a need for a corresponding increase in the supply of healthcare providers and facilities. This theory helps explain the importance of healthcare workforce planning to ensure enough healthcare professionals meet the population's needs. For instance, the demand for healthcare services may increase with an aging population, requiring more doctors, nurses, and other healthcare professionals (Tzenios, 2019).
Another economic theory relevant to healthcare is the concept of opportunity cost. This theory suggests that there are alternative choices and associated costs in healthcare decision-making (Henderson, 2022). For example, investing in a new state-of-the-art medical facility would involve significant financial resources, and that investment may mean forgoing other potential uses of those resources, such as funding community health programs or medical research (Donkin et al., 2018).
Use of Economic Principles:
Hospitals use strategic planning to set both short-term and long-term goals. In the short term, they might improve patient satisfaction or reduce wait times for certain services. In the long term, they might aim to expand their healthcare services to meet the community's growing needs or invest in new technologies to improve patient outcomes (Henderson, 2022).
The process of strategic planning involves:
1. Environmental Analysis: Assessing the current healthcare landscape, economic trends, and regulatory changes that might impact the hospital's operations (Herring et al., 2018).
2. Goal Setting: Defining specific and measurable objectives aligned with the hospital's mission and vision.
3. Resource Allocation: Allocating financial and human resources to achieve the set goals (Herring et al., 2018).
4. Implementation: Executing the plans, which may include initiatives to enhance patient care, improve operational efficiency, or expand services.
5. Monitoring and Evaluation: Continuously evaluating progress towards the goals and making adjustments as necessary (Tzenios, 2019).
For-Profit and Nonprofit:
Financial Differentiation:
For-profit and nonprofit healthcare organizations differ significantly in their financial structures and objectives.
For-profit organizations are driven by the goal of making a profit for their shareholders or owners. They aim to generate revenue that exceeds their expenses. This profit-seeking motive can lead them to focus on high-margin services and markets (Henderson, 2022). They may invest more in marketing and expanding services in areas with higher demand, potentially neglecting underserved communities if they are not financially lucrative.
Nonprofit organizations, on the other hand, reinvest any surplus back into the organization to fulfill their mission and provide better healthcare services (Herring et al., 2018). Their primary objective is to serve the community's needs, regardless of profitability. Nonprofits may be more inclined to offer services to low-income populations, prioritizing social welfare over financial gain.
Economic Differentiation:
The reaction of nonprofit and for-profit healthcare organizations to economic policies can differ based on their financial structures and objectives.
For example, consider the newest CHIP legislation. A nonprofit facility might view this legislation positively as it aligns with its mission to improve the health of children from low-income families (Donkin et al., 2018). The legislation might provide additional funding and resources to support their services, which can positively impact their ability to provide care to more underserved children.
In contrast, a for-profit facility might have mixed reactions to the CHIP legislation. While they may recognize the importance of providing healthcare to children, the potential financial burden of compliance and increased regulation might concern them (Tzenios, 2019). They may need to allocate resources for implementing the required changes, and the reimbursement rates for CHIP patients might be lower than what they usually receive for privately insured patients.
Policy, Changes, and Disparities:
Economic Policy and Disparities in Care:
Healthcare economic policies can significantly impact healthcare disparities. For example, reimbursement rates set by government payers (such as Medicare and Medicaid) can affect the financial viability of healthcare providers in underserved areas (Tzenios, 2019). If reimbursement rates are low, providers may be reluctant to serve patients relying on these programs, leading to disparities in access to care.
Moreover, economic policies that address social determinants of health, such as housing, education, and employment, can influence healthcare disparities. Improving these social factors can lead to better overall health outcomes and reduce the burden on healthcare facilities (Herring et al., 2018).
Policy Changes:
The Anti-Human Trafficking Law aims to combat human trafficking and protect victims. While the primary goal of this legislation is not directly related to healthcare, it can have implications for the healthcare industry (Henderson, 2022).
Healthcare providers may be required to participate in identifying and reporting potential victims of human trafficking. This could increase their administrative burden and necessitate staff training on recognizing signs of trafficking. Additionally, the law may have financial implications for healthcare organizations, especially if it requires additional staff or resources to comply with reporting requirements (Donkin et al., 2018).
Disparities Planning:
Disparities of care are a crucial consideration in healthcare strategic planning. Hospitals must assess the healthcare needs of their community, identify underserved populations, and develop strategies to address disparities in access and quality of care (Donkin et al., 2018).
Strategic planning for disparities may involve:
1. Community Needs Assessment: Identifying vulnerable populations and their specific healthcare needs.
2. Resource Allocation: Allocating funds and resources to improve services in underserved areas (Tzenios, 2019).
3. Partnerships and Outreach: Collaborating with community organizations to reach out to underserved populations and improve health education.
4. Cultural Competency Training: Providing training to healthcare staff to ensure they can effectively address the needs of diverse patient populations (Henderson, 2022).
5. Outcome Monitoring: Regularly measuring and evaluating the impact of implemented strategies on reducing disparities and improving healthcare access and outcomes (Tzenios, 2019).
In conclusion, economic theories and principles play a vital role in shaping the healthcare industry's behavior and decision-making. Healthcare organizations, both for-profit and nonprofit, must consider economic factors when planning their short- and long-term goals. Economic policies can impact healthcare disparities, and strategic planning should take into account disparities in care to improve overall community health (Tzenios, 2019). Understanding these economic aspects is crucial for healthcare organizations to deliver effective and equitable care to their communities.
References
Donkin, A., Goldblatt, P., Allen, J., Nathanson, V., & Marmot, M. (2018). Global action on the social determinants of health. BMJ global health, 3(Suppl 1), e000603.
Henderson, J. W. (2022). Health economics and policy. Cengage Learning.
Herring, B., Gaskin, D., Zare, H., & Anderson, G. (2018). Comparing the value of nonprofit hospitals’ tax exemption to their community benefits. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 55, 0046958017751970.
Tzenios, N. (2019). The Determinants of Access to Healthcare: A Review of Individual, Structural, and Systemic Factors. Journal of Humanities and Applied Science Research, 2(1), 1-14.
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2
Milestone Three
Deanna Buchanan
SNHU
IHP 620
Dr. Karen Myers
Organization Impact and Recommendations
Organization Introduction
Springfield, Illinois-based Memorial Health System is a nonprofit healthcare institution that provides top-notch medical treatment to its local population. "Memorial Healthcare System," 2023, describes the nonprofit hospital's core values as "integrity, stewardship, and giving back to the community." Through its patient financial aid and community investment programs, the organization seeks to enhance lives and address the socioeconomic determinants of health.
Memorial Health System's main business or mission is Healthcare, including a wide variety of medical services and care delivery to the community. Memorial Health System contributes to various sub-industries and its main healthcare offerings. These include community outreach, social assistance, and partnerships with charitable groups like the Shemilah Outreach Center, which focuses on the safety and development of children.
Regarding the financial backdrop, the dedication of Memorial Health System to its objective is visible in its financial operations. The company was ranked 15th in the country for a "fair share" surplus, demonstrating its commitment to patient financial help and community engagement that went above and beyond the value of its tax exemptions ("Romano," 2022). The dedication of Memorial Health System to carrying out its goal is evidenced by the fact that it invested $31 million more in community investment and patient financial help than it did in tax incentives ("Romano," 2022).
Regarding the hospital's ability to pay its bills, although precise yearly income and expense figures are not given in the information provided, the fact that Memorial Health System was able to surpass its tax exemptions through patient assistance and community investment suggests that the hospital is in good financial standing. The ability of the organization to direct resources to its mission-driven projects demonstrates its financial stability and appropriate money management.
Nonprofit or For-Profit
Memorial Healthcare System, a nonprofit healthcare institution, is committed to delivering healthcare services and improving the community's quality of life ("Memorial Healthcare System," 2023). Because Memorial Health System is a nonprofit organization, it differs from healthcare businesses that make a profit, which has repercussions for economic policy.
Because Memorial Health System is a nonprofit organization, its operations are driven more by fulfilling its goal than maximizing profits. With this classification, the organization is given certain tax advantages and exemptions, enabling it to return any extra money to its operations, buildings, and neighborhood projects, including patient financial help and community investment ("Romano," 2022). Healthcare nonprofit organizations frequently emphasize community welfare and social responsibility more than financial success.
Memorial Health System's nonprofit status might impact economic policy by affecting the organization's eligibility for grants, tax breaks, and government financing to promote its mission-driven projects. The objectives of nonprofit healthcare organizations like Memorial Health System will likely be well-aligned with economic policies supporting community investment, patient care, and healthcare accessibility. This covers community involvement initiatives, patient support programs, and policies dealing with socioeconomic health determinants.
Nonprofit healthcare institutions may, however, come against certain difficulties. Because it relies on contributions, grants, and reimbursements, its financial stability may be impacted by changes in healthcare regulations or the economy. For instance, the organization's capacity to sustain its high degree of patient financial aid and community investment might be impacted by decreases in government funding or changes in reimbursement rates.
Memorial Health System's tax-exempt status enables it to devote greater resources to its mission-driven projects rather than paying taxes. As a result, the organization is better equipped to broaden its influence, improve patient care, and make significant contributions to the community. The financial environment for Memorial Health System may be further shaped by economic legislation, such as tax laws or incentives for nonprofit organizations, which may affect its capacity to carry out its goal.
Financials, Market, and Demand
Demand Theory
The financial accounts of Memorial Health Hospital demonstrate the demand theory, revealing its popularity and the level of demand for healthcare services in the neighborhood. One important measure of demand is the hospital's overall revenue, which was $1,384,680,779 for the fiscal year that ended in September 2020 (ProPublica, 2023). The high income highlights its significance as a crucial healthcare provider in the community and suggests that its services are used to a large extent.
The hospital's demand patterns can also be better understood by looking at the significant sources of revenue. The significant demand for the healthcare services offered by Memorial Health Hospital is shown in particular by the high income obtained from program services, which accounts for 90.0% of the total revenue (ProPublica, 2023). This shows that the hospital receives much of the community's medical care.
According to ProPublica (2023), the $30,296,383 increase in asset sales over the prior fiscal year may indicate growth initiatives or the launch of new services. This growth is consistent with the demand hypothesis since it reflects the hospital's attempts to fulfill the community's increasing requirements successfully. Additionally, the hospital's $18,297,842 net income demonstrates a successful financial outcome, suggesting a balance between service demand and effective financial management (ProPublica, 2023). It shows that the hospital is giving the community services that are both required and desired, which helps to ensure its financial stability. The hospital's assets, which amount to $1,959,133,277 in total (ProPublica, 2023), should also be considered. This high asset value can signify infrastructure and technological upgrades for the community's healthcare requirements.
Market Behavior Impact
The healthcare industry's market behavior greatly impacts Memorial Health Hospital's financial statements, which causes fluctuations in income and spending all year round. A closer look at important elements, including fundraising efforts, pro bono cases, and neighborhood publications, is necessary to comprehend these variations.
Fundraising efforts significantly impact the hospital's financial accounts. Increased donations, which directly improve the hospital's overall revenue, can result from well-planned fundraising events (ProPublica, 2023). This cash might go toward improving patient care, growing services, or purchasing cutting-edge medical equipment. Conversely, times when there are fewer or less effective fundraising efforts may result in a decline in donations, impacting the hospital's income and even its capacity to launch strategic programs.
Conversely, pro bono instances where the hospital offers free or discounted care to marginalized people might increase expenditures as the institution incurs costs without commensurate income. These instances meet the hospital's commitment to community service but might also create variation in functional expenditures, affecting the hospital's net profitability (ProPublica, 2023). In line with the hospital's purpose and principles, such pro bono work aims to enhance lives and address societal determinants of health.
Publications in the community have an impact on market behavior as well as the financial health of the hospital. Increased demand for the hospital's services may be influenced by public awareness campaigns, community health initiatives, and instructional materials it publishes. Increased patient enrollment and increased program service revenues may result from these initiatives. Furthermore, community involvement and favorable opinions might improve the hospital's reputation and encourage increased donations and contributions.
Economic Legislative Changes
Legislative Changes
Organizations like Memorial Health System are significantly impacted by the healthcare industry's economic and legislative developments, which affect their strategy, day-to-day operations, and bottom-line results. The shift to Value-Based Care (VBC) is an economically significant measure. Value-Based Care (VBC), a departure from the conventional fee-for-service paradigm, incentivizes healthcare professionals to concentrate on patient outcomes and cost-effectiveness. This strategy encourages hospitals to improve patient outcomes, reduce unneeded hospitalizations, and coordinate treatment better (Ramian, 2021). Value-Based Care (VBC) marks a substantial change in how healthcare is delivered and paid for, even if it is not specifically tied to the ACA.
Memorial Health System must modify its internal policies in response to Value-Based Care (VBC) to conform to the new value-driven methodology. The company established procedures to enhance care coordination amongst multiple departments, ensuring patients get thorough, well-coordinated treatment throughout their healthcare journey. This internal policy change will enhance patient outcomes while successfully controlling expenses.
Policy Changes and Impact
The Value-Based Care (VBC) philosophy has significantly influenced Memorial Health System's financial statements. The move to value-based compensation encourages the hospital to concentrate on preventative treatment, managing chronic diseases, and lowering hospital readmissions. As a result, the revenue structure of the hospital might alter, with the possible loss of revenues from particular services that were before compensated using the fee-for-service model. In contrast, if the hospital effectively satisfies quality and outcome measures and receives larger payments, its financial situation may be improved.
As an illustration, under Value-Based Care (VBC), Memorial Health System may concentrate on implementing patient education programs to support the management of chronic illnesses like diabetes. As a result, there may be fewer hospital admissions for those with uncontrolled diabetes, but less money may be made from such hospitalizations. However, if the hospital successfully treats the illness and assists people in maintaining better health, it may be eligible for increased payments because of improved patient outcomes.
Statement Impact
Memorial Health System's financial statements have undergone a considerable transformation due to the implementation of value-based care. The revenue structure changes when the hospital shifts its focus to value-based reimbursement. There may be a decrease in income for some previously paid services under the fee-for-service approach. In contrast, the facility will profit financially if the hospital successfully satisfies quality and outcome measures, which results in increased reimbursements.
For instance, Memorial Health System could introduce patient education programs aimed at treating chronic illnesses like diabetes. This program may lead to fewer hospital admissions for uncontrolled diabetes but also result in lower admissions-related revenue. However, if the hospital successfully treats the illness and assists people in maintaining better health, it may be eligible for increased payments because of improved patient outcomes.
Potential Disparities
Value-Based Care (VBC) can reduce healthcare inequities, but there is also a danger of doing so. There is a worry that during the shift to value-based care, vulnerable groups with little access to resources or preventative treatment may not get attention. People with greater healthcare requirements but fewer means to follow preventative measures may suffer if the hospital concentrates its resources on value-driven care programs, for example. As a result, there could be differences in health outcomes between various socioeconomic groups.
Memorial Health System may look into specialized outreach initiatives for marginalized populations to address this possible inequality in healthcare. These initiatives could give people access to preventative care, education, and assistance managing chronic illnesses. The hospital may contribute to closing healthcare inequalities and ensuring that everyone in the community benefits from value-based care by focusing on the unique needs of vulnerable groups.
References
Fouladvand, S. (2018). Decentering the prosecution-oriented approach: Tackling both supply and demand in the struggle against human trafficking. International journal of law, crime, and justice, 52, 129-143.
Memorial Healthcare System. (2023). Leadership and Board of Commissioners. Memorial Healthcare System. https://www.mhs.net/about/leadership#:~:text=Memorial%20Healthcare%20System%20is%20a,board%20appointed%20by%20the%20Governor.
ProPublica. (2023, January). Memorial Health System – nonprofit explorer. ProPublica. https://projects.propublica.org/nonprofits/organizations/900756744
Ramian, H. (2021). Evaluation of Health Policies and Quality Measures in the Era of Value-Based Care. The Pennsylvania State University.
Romano, L. (2022, July 6). Memorial Health named as a nonprofit hospital for Financial Assistance. NowDecatur.com. https://nowdecatur.com/2022/07/06/memorial-health-named-as-a-nonprofit-hospital-for-financial-assistance/
