Hospitals should be committed to providing quality and affordable healthcare services while cutting back on operating costs and overheads. The top management should put structures in place to ensure that the hospital conforms to policies and regulations in all aspects of healthcare provision. An effective business model will help the hospital to expand and extend a wide array of services to those who need them the most.
Purpose
The objective of this memo is to analyze the existing frameworks in this organization with the aim of finding out and fixing any loopholes that might be decelerating performance. On finding out the loopholes, it is important to make recommendations that would help the organization to make the necessary changes.
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Focus Areas
This organization exists to ensure that it meets the needs of its stakeholders who include the medical personnel, patients, regulatory bodies and the public. If the organization is to meet this noble purpose, it must focus on certain areas to make it stand out among similar organizations at the local, state, and national levels.
Business strategy
The first area that the organization should focus on is its business strategy as it defines what the organization stands for in relation to the needs of the stakeholders. An effective healthcare organization is committed to providing its clients with cost-effective and high-quality healthcare services (Chang, Chiao, and Tsai, 2017). At the same time, the organization should focus on growing its business, raising its profitability levels, and improving the business value for the sake of the stockholders. This objective will be possible if the organization hires highly qualified physicians who can provide quality services and help the organization to become a leader in the industry.
Sources of revenue
Healthcare organizations require much funding to endure that they have high-end technologies, equipment, enough personnel and conduct medical researches. This organization needs to rethink its budget and the ways to fund its operations to achieve the objective of becoming an outstanding healthcare organization. According to Morningstar (2015), most hospitals depend on inpatient occupancy to get its funding meaning the more the patients, the higher the revenue. However, this source of revenue is subject to uncertainties due to fluctuations in patient fluctuations. Following this realization, the organization ought to collaborate with healthcare insurance providers such as Medicare and Medicaid to be assured of reimbursements for both outpatient and inpatients.
Electronic health records adoption
Healthcare organizations around the world are moving towards the use of electronic health records which are much easier to retrieve and enhance confidentiality. The American Recovery and Reinvestment Act of 2009 (“ARRA”) establishes that healthcare facilities that adopt and use electronic health records that are certified will receive incentive payments from Medicaid and Medicare (Aguirre, Suarez and Fuentes, 2019). On the other hand, eligible hospitals that fail to adopt and use electronic health records are prone to penalties. For this reason, the organization should adopt and use electronic health records to be eligible to receive incentive payments for up to four fiscal years. These incentives will go a long way in helping the hospital to improve its healthcare services.
Healthcare Regulation
Several regulatory bodies and agencies to ensure compliance regulates the running of healthcare organizations. The regulations relate to the adequacy of equipment, physicians, facilities, records, adequacy of medical care, safety, environmental laws, building codes. Periodic inspection is done to ensure that hospitals comply with these regulations and those that do not may have their licenses canceled (Bouwman, Bomhoff, and de Jong, 2015). For this reason, the hospital ought to ensure that all the personnel knows about this regulation and ensure compliance. The hospital should be updated on reviews and updates of local state and federal healthcare policies to ensure timely implementation.
Recommendations and Conclusion
Hospitals and other healthcare organizations should ensure that citizens get quality and affordable healthcare facilities for better outcomes. the only way to achieve this noble objective is by adopting an effective business model that helps the hospital in minimizing resources while providing excellent healthcare services. The hospital ought to comply with local state and federal healthcare regulations to avoid losing its license or providing poor services. In the end, the hospital can expand its service provision, to a larger population and in turn increase its profitability and market share.
References
Aguirre, R. R., Suarez, O., & Fuentes, M.(September 13, 2019) Electronic health record implementation: A review of resources and tools. Cureus , 11(9), e5649.
Bouwman, R., Bomhoff, M., & de Jong, J.D. (2015). The public’s voice about healthcare quality regulation policies. A population-based survey . BMC Health Services Research, 15(1), 325.
Chang, C., Chiao, Y. & Tsai, Y. (2017).Identifying competitive strategies to improve the performance of hospitals in a competitive environment. BMC Health Services Research , 17(1), 756.
Morningstar. (26 February 2015). Form 10-K HCA Holdings, Inc.- HCA: Annual report with a comprehensive overview of the company.
