The core aim of any organization is to extend its operations and increase the chance of profitability. The healthcare sector is dominated by many opportunities that attract various healthcare providers to venture for new opportunities. New economic initiatives provide healthcare organizations with opportunities to increase profitability. However, the process of establishing new economic initiatives should scrutinize the feasibility of such projects to minimize the potential risks that could result in such projects. The management of various healthcare institutions should lay reliable strategies in ensuring that the organizations capitalize on the opportunities presented by new economic initiatives.
Analysis of the effects of financial and economic factors caused by new economic opportunities in healthcare systems on patient care, service offered, and organizational structure and operation
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New economic opportunities in healthcare present a chance to a healthcare provider to increase in client base. New economic opportunities reach out to new patients and clients, and the phenomenon translates to overall profitability in the healthcare facility (Assessment 2 Context). New economic opportunities present the hospital staff with an ideal opportunity to gain more experience and improve on service delivery. Identification of new economic opportunities in healthcare leads to exposure of hospital staff and therefore creating an opportunity to develop a reliable staff that could facilitate the smooth operation of the institution.
Nevertheless, new economic opportunities in the healthcare sector pose several risks that could affect the economic viability of a healthcare institution. One of the potential risks is the reduction in the quality of services offered. New economic opportunities cause sudden strain of resources in the healthcare sector. The increased number of patient turnout increases the workload on institution’s staff and therefore resulting in poor performance. Another economic risk associated with new economic opportunities in healthcare is imminent counter-reactions from competitors in the business of healthcare delivery (Falivena & Palozzi, 2020). New economic opportunities in healthcare create undue tension among competitors. The tension results to counter-reactions from competitors. The counteractions include the offering of similar services and the slashing of the treatment cost. Such counter-reactions present the management with new problems.
Analysis of the cost and benefits of in proposed economic initiative over a five-year time horizon
Credible analysis of cost and benefit should be conducted so as so to keep a balanced fiscal flow in a healthcare institution. According to the article "Value-Based Healthcare Paradigm for Healthcare Sustainability," the ration required in a health cost-benefit equation should always reflect high profitability and low cost (Falivena & Palozzi, 2020). A cost-benefit equation that has high interest over cost implies that the project is self-sustaining. This should form the bases of determining how much resources should be allocated to a new economic opportunity.
Ethical and culturally equitable intervention to economic problems within a healthcare organization.
One of the interventions that can solve economic problems in healthcare is service differentiation. This approach allows the management to maximize profitability while the cost of production remains constant. Service differentiation involves the offering of medical procedures in a unique version. Healthcare providers can consider creating new formulas of service delivery that improve the quality of services and maintain the original market cost (Marshall & McGrew, 2017). This method is an effective tool beating the market competition in the healthcare sector and therefore helping to solve economic crises. Another strategy that can help to solve economic problems with a healthcare organization is through the maintaining of market share. Healthcare organizations should opt to maintain the existing control of the market by introducing programs that boost client loyalty.
Justification of the Qualitative and quantitative information used to guide economic decision making to stakeholders and colleagues
The contributions of (Marshall & McGrew, 2017) are relevant in providing alternative interventions for solving economic issues in a healthcare institution. The authors are relevant in arguing that product and service differentiation is an ideal tool in solving economic instability in healthcare set up since it invests in client loyalty. The cost analysis formulae discussed by Falivena & Palozzi. (2020), in the article "Value-Based Healthcare Paradigm for Healthcare Sustainability", presents a solid framework of balancing between the cost of productivity and interests earned. The author is credibly relevant in providing an approach that ensures the ratio between the cost and interest reflects high interests and therefore resulting in the sustainability of the project. Turcu et al. (2018) are credibly relevant in their prescription for the various interventions that minimize the risks caused by economic initiatives
Economic strategies to address dynamic environmental forces and ensure the future security of organization resources and its ability to provide healthcare,
One of the strategies that can address risks in economic initiatives and foster operational security is through the use of policies to dictate standards of services that are expected from economic initiatives. One of the risks associated with economic initiatives is a reduction of quality of services delivered in a healthcare institution, and this phenomenon can jeopardize the future security of healthcare delivery (van Leersum, Bennemeer, Otten, Visser, Klink & Kremer, 2019). The setting of standard policies and regulations to monitor the quality of services is an ideal strategy in securing future healthcare delivery. Moreover, another economic intervention of solving economic problems that would otherwise jeopardize the future existence of the healthcare sector is through the strategizing to deal with counter-reactions from competitors in healthcare delivery. Management of healthcare providers should prepare to handle reactions such as competition before establishing new economic opportunities.
Conclusively, new economic initiatives in healthcare delivery present healthcare providers with enormous opportunities for extending service delivery and increasing profitability. However, economic initiatives should be approached in a manner that provides interventions to address the potential risks associated with the projects. New economic initiatives present healthcare providers with an opportunity to increase the client base. The economic initiatives pose the risk of creating undue competition from fellow healthcare service providers.
References
Assessment 2 Context: Competitive Markets, Market Power in Health Care, and Risk Mitigation. CAPELLA UNIVERSITY
Falivena, C., & Palozzi, G. (2020). Value-Based Healthcare Paradigm for Healthcare Sustainability. In Accountability, Ethics and Sustainability of Organizations (pp. 133-153). Springer, Cham.
Marshall, D. R., & McGrew, D. A. (2017). Creativity and innovation in health care: opening a hospital makerspace. Nurse Leader, 15(1), 56-58.
van Leersum, N., Bennemeer, P., Otten, M., Visser, S., Klink, A., & Kremer, J. A. (2019). Cure for increasing health care costs: The Bernhoven case as driver of new standards of appropriate care. Health Policy, 123(3), 306-311.
Turcu, C. E., & Turcu, C. O. (2018). New perspectives on sustainable healthcare delivery through Web of things. In Handbook of Research on Contemporary Perspectives on Web-Based Systems (pp. 166-187). IGI Global.
