Healthcare Financial Management and Economics Week 4 Assignment Assignment: Supply

Healthcare Financial Management and Economics Week 4 Assignment Assignment: Supply of Primary Care Workforce Scenario: Your hospital has an opportunity to participate with an Accountable Care Organization (ACO) contract with 100,000 ACO patients. The ACO patient population expects about 10,000 avoidable hospitalizations per year with a potential savings of $100 million, which will be shared 50% revenue to the insurer and 50% revenue to the hospital. The ACO patient population will require an average of 6 office visits per year, and 600,000 total office visits will need to be supplied by your primary care workforce. To prepare for this Assignment: Based on the scenario and financial data provided by the course instructor, conduct a financial projection (revenues, expenses, and profit) which analyzes the efficiency in the supply of health services. The Assignment: In a 2- to 3-page Word document that includes tables and/or calculations, make recommendations on the following: 1) number of physicians and nurse practitioners; 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address challenges of supplier induced demand and ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Support your recommendations with rationale, including how the financial calculations impacted your recommendations. Financial Data ACO revenue: Number of ACO patients 100,000 Potential savings: Number of avoidable hospitalizations per patient 0.1 Total avoidable hospitalizations per year 10,000 Cost per avoidable hospitalization $10,000 Total cost of avoidable hospitalizations $100,000,000 Demand for healthcare/utilization: Number of office visits per patient 6 Total office visits per year 600,000 Supply of workforce/expense: Employed providers (salary) Physician salary per year $200,000 Nurse practitioner salary per year $100,000 Contracted providers (fee-for-service) Physician fee per visit $100 Nurse practitioner fee per visit $50 Productivity: Physician visits per year 3,000 Nurse practitioner visits per year 2,000 Financial incentives: Salary bonus to ensure efficiency 10% Bonus fee per visit to ensure efficiency $1 transcript for reference only do not use any numbers: Hello.
Hello.
OK.
Great. Got it.
OK.
As you see you you you got.
This is the template you’re gonna use to go over your thing and.
Part of the project is what they’re giving you is.
It’s based on.
600 visits.
Per year.
And what we’re trying to find out is the number of physicians and number of practitioners now is there.
I have a perfect solution, but that that’s just the you know perfect solution.
You could have less physicians or more more physicians, more nurse practitioners.
It all depends sometimes on the state you’re in.
And what you’re doing?
So.
And honestly, in today’s world is a lot of us. We like more nurse practitioners because they don’t get paid as much and they do just as much.
As a physician in a lot of ways.
So.
But the biggest issue that happens with this with this assignment is students.
Come up with all these different numbers, but what you need is you need the total number here.
And you need.
This has to equal 600 visits.
So remember when you have physicians, they can do 3000 visits per year.
Per patient.
And nurse practitioners can do 2000 from your sheep.
A lot of issues that I get are.
Students put.
In, they’ll put in 3000 visits here, 2000 = 5000.
That’s this has to equal 6. If you see my thing, it has to equal six, 600,000 here.
Valerie’s.
Believe it.
$200,000 and this assignment per position.
100,000 person per nurse practitioner that’s going to be times.
This number, this number times the 200 and that and you’re going to get the totals, you’re going to get the salaries.
Then there’s going to be a total here.
Salary bonus.
It’s 10% of their salary that goes here. That goes here. You get a total.
That’s a easy one.
Fee for service.
Tell me my remind me on the sheet, but I got each each each.
Quarter’s different.
I don’t know if it’s $100 or whatever.
A physician on fee for service means that we’re getting paid if a patient comes in, you’re going to get a, you know, 100 bucks.
For nurse practitioner, 50 bucks.
So fee for you’re going to charge 100 bucks times. How many visits to get this number?
Same thing here. If the nurse practitioner’s getting $50 per visit, it’s going to be times how many visits to here. Then you get your toll.
And then the same thing the FIFA bonus.
I think it said.
I don’t know if it’s a dollar or $0.50 whatever.
The fee for service bonus is a dollar times every visit.
Then you got. You know, if it’s 300,000 visits here or 200, whatever you can have two hundred, 300, whatever. And you have that total number here.
Now anybody can say here what are the revenues.
Revenues.
Are when you read, it’s the amount of money they have said.
That they will get from.
Non hospitalization split between the two.
And I’m. I’m just going to.
I’m just going to say I’m not going to say the number of the assignment because I don’t want to give you the number, but just say.
Non hospitalization, they were going to get get 10 bucks.
$5 is going to go to the hospital, $5 is going to go to the insurance company.
That’s that’s going to be your revenues.
You’re going to want to put those there.
I had a question from a student that said what are the expenses?
This is a very simple assignment. We’re not putting in.
Medical insurance. All these other expenses we, we’re we’re doing. It is OK. What expenses are going to be the salary and the bonus right here.
Fee for service fee for service bonus right here.
What’s the profit from?
There.
You’re gonna make your analyzation of what is the best way to go?
Should the hospital utilize salary?
Hire the employee, hire the physicians and nurse, or should they leave them on their own to do fee for service?
And that’s going to be your ride up.
And that can be you could have a.
One paragraph you know one page.
Right up to me with this and that will be perfect.
To let me know what you found out through this analysis from the assignment that was given to you. keep this email in mind: First your number of providers have to match your visits, for example 200 physicians at 3000 visits per year equal 600000 visits. Go back and look at that and your revenues are incorrect, listen to the reading, the revenue is split between the two. and answer the calculations below and answer based on the template provided: Image transcription text Number Visits SALARY SALARY BONUS FFS FFS BONUS Number of Physicians Number of Nurse Practitioners Totals SALARY FFS REVENUE… Show more

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