How do efficiency techniques differ in the short- versus long-run when attempting to maximize profits? What specific incentives are used in a hospital to promote efficiency? What conflicts may exist between a firm's desire to maximize profits and its ethical obligations? Can you give an example from a hospital setting place of work?© BrainMass Inc. brainmass.com October 16, 2018, 11:21 pm ad1c9bdddf
The term efficiency techniques are generally used for those approach / steps which are applied in various organizations to ensure optimum utilization of resources and thereby maximize profitability. The techniques differ from short term to long term. For example short term techniques to maximize profitability may include increasing the selling price, cost control etc, whereas long term techniques will include, exploring a new market, developing and launching a new product etc. The ...
The solution examines efficiency techniques in hospital to maximize profits. The conflicts the may exist between a firm's desire to maximize profits and its ethical obligations is determined.
Healthcare Financial Management
To deliver health care services, an ACO needs to create a competent workforce that can provide health care to the patients that are in the ACO. Some integrated ACO entities already have employed physicians and mid-level providers that receive salaries from the organization, whereas other non-integrated ACO entities need to invest in external relationships with independent physicians and other providers. Since ACOs do not have managerial control over non-employed providers, additional controls and incentives may be necessary to ensure that efficiency is maximized. ACOs also need to consider the number and mix of specialists (e.g., family practice vs internal medicine) and mid-level providers (e.g., physician assistants and nurse practitioners) in delivering primary care services that can promote value. Maximizing value requires appropriate workforce decisions on supply and incentives to encourage providers to minimize costs.
Based on the financial data, conduct a financial projection (revenues, expenses, and profit) that analyzes the efficiency of the supply of health services.
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 needed; 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address the challenges of supplier-induced demand and how to ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Explain the rationale behind your recommendations, including the impact made by your financial calculations.View Full Posting Details