Considerations With Resource Allocation and Risk in Health Services Organizations

Consider the following scenario:

Champion Healthcare is an HSO that serves a large network of hospitals, research laboratories, and clinics across various regions. Recently, the board of directors of Champion Healthcare has requested that all network health facilities develop patient portal technology to enhance patient engagement. As a health care administrator at one of the network hospitals, you have been called in to a stakeholder meeting to provide information on what technology is currently in use at your hospital. The agenda also includes learning about the aims of the newly designed patient portal technology so that you may implement the next steps to roll out the technology at your hospital.

Physicians and health care professionals who deliver health care directly are to promote this patient portal technology not only as a way to integrate electronic health records but also to allow patients the opportunity to engage in informed health decision making. Similarly, regional clinics and research laboratories are to use the patient portal technology to integrate assessments, lab results, and other tests used for diagnoses to corroborate physician and patient information. The board of directors has recommended that the patient portal technology be planned, designed, and tested over the next 12 months. You have been asked to determine the feasibility of using this patient portal technology at your hospital. You are also to engage with your teams to ensure that physicians and patients are fully informed on how to access and use the new technology.

For this Assignment, reflect on the scenario presented, and consider the financial and risk consequences associated with implementation of the patient portal technology. Consider what actions you as a current or future health care administrator should keep in mind when planning for resource allocation on a new project. Think about potential risks for both your staff and patients as they concern operations for the HSO.

For the break-even analysis portion of this Assignment, assume that the patient portal will generate revenue of $20 per patient in co-payments and will require a fixed cost of $50,000 for the initial investment and variable cost of $5 per patient for on-going maintenance.

The Assignment (4-6 pages):

• Describe how you would assess the financial and risk consequences associated with the patient portal technology decision.
• Calculate the breakeven, and explain the results of the analysis.
• Explain what investment recommendation(s) you would propose as a current or future health care administrator for the allocation decision. Be specific and provide examples.