17 Jun Healthcare Financial Management and Economics
Assignment: Supply of Primary Care Workforce Scenario: Your hospital has an opportunity to participate with an Accountable Care Organization (ACO) contract with 50,000 ACO patients. The ACO patient population expects about 5,000 avoidable hospitalizations per year with a potential savings of $50 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 300,000 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 50,000 Potential savings: Number of avoidable hospitalizations per patient 0.1 Total avoidable hospitalizations per year 5,000 Cost per avoidable hospitalization $10,000 Total cost of avoidable hospitalizations $50,000,000 Demand for healthcare/utilization: Number of office visits per patient 6
Total office visits per year 300,000 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
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.