Proposal Of New Economic Opportunity 2018 C ✓ Solved

Proposal Of New Economic Opportunity 1copyright 2018 C

Executive Brief: Proposal of New Economic Opportunity Learner’s Name Capella University Health Care Economics and Decision Making Executive Brief: Proposal of New Economic Opportunity November, 2017 PROPOSAL OF NEW ECONOMIC OPPORTUNITY 2 Executive Brief: Proposal of New Economic Opportunity The primary objective of Whilborne Medical Center (WMC) has always been to deliver high-quality health care to the community. The medical center can take a step further in that direction by setting up a new urgent care center (UCC) within its premises. A UCC is a health care facility that provides immediate care, without a scheduled appointment, for injuries and illnesses that are not life-threatening and do not require admission to the emergency department (ED).

The key characteristics of a UCC are reduced wait times, increased service hours, reduced costs, and quick service (Chang, Brundage, & Chokshi, 2015). WMC is located in an area that has around 3,000 locals whose urgent care needs may be met by the UCC. Additionally, WMC, being located near Maxima Industrial Park, receives a lot of cases of work-related injuries (e.g., minor burns, sprains, cuts, and abrasions) and other minor illnesses (e.g., fever, headache, ear infection, abdominal pain, and respiratory illnesses) that require immediate attention. Currently, such cases are handled by the medical center’s ED, which leads to overcrowding and reduced efficiency. Once the UCC is set up, such cases can be diverted to the UCC to ease the burden on the ED at the medical center.

Outcomes of Starting an Urgent Care Center WMC has always strived to focus on the six areas of health care quality—timeliness, safety, patient-centeredness, efficiency, equity, and effectiveness—stated by the Institute of Medicine (IOM). Setting up a UCC will help the medical center achieve its vision of improving community health and delivering superior health care, irrespective of patients’ cultural background, age, gender, and socioeconomic status (Agency for Healthcare Research and Quality, 2016). PROPOSAL OF NEW ECONOMIC OPPORTUNITY 3 The new line of service will be convenient for patients with noncritical conditions that require immediate attention. They will not have to wait for several hours as they do at the medical center’s ED.

They will be able to walk in without an appointment and avail after-hours health care services on all days of the week. Setting up a UCC will help the ED concentrate on critical, life-threatening medical cases; it will also improve the efficiency of the ED and the quality of care provided to patients (Qin, Prybutok, Prybutok, & Wang, 2015). Expenses on technology and infrastructure are comparatively low for setting up the UCC. Consequently, the cost of health care services provided at the UCC will be low in comparison to the cost of health care services at the ED of the medical center. Moreover, a UCC is an affordable means of availing health care services for noncritical ailments (Qin et al., 2015).

This makes it an economically viable health care solution for the neighborhood. With its services, the UCC will generate additional revenue for the medical center. Although setting up a UCC has several positive outcomes, it has some negative outcomes, too. One of the drawbacks of getting treated at a UCC is that patients are likely to get care from different physicians every time they visit the UCC. This may result in the physicians not knowing their patients’ personal or family health history, and the patients may not receive the same quality of care they receive at their primary care physician’s office.

In addition, although wait times at UCCs are shorter than at EDs, patients could end up waiting longer than when they would see their primary care physician with an appointment on days that the UCCs have high footfall. Also, more staff may have to be hired at the UCC, which will entail additional costs for the medical center. Factors Influencing the Setting up of an Urgent Care Center PROPOSAL OF NEW ECONOMIC OPPORTUNITY 4 A UCC is a volume-driven business that is dependent on many economic and environmental factors. Environmental data suggests that WMC is a reputed medical center in the area and there are few health clinics in the vicinity. The walk-in facility at the UCC and its proximity to Maxima Industrial Park will make it a preferred option for employees working at the industrial park.

As the industrial park consists mainly of manufacturing units, there is a high possibility of work-related injuries. Therefore, the UCC can expect a high number of visits from these employees. Also, most employees at these companies work in shifts and sometimes on weekends. This is a great opportunity for the UCC as it plans to offer health care services even in the evenings and on weekends. The capital cost of the project is estimated to be $350,000. It will include the cost of construction, equipment, and furniture. There will be no land cost because the UCC will be built within WMC’s premises. One half of the required funds will be procured through a bank loan; the other half will be funded using the medical center’s reserves. It is assumed that an average of 357 patients will visit the UCC every week and the consultation fee for each patient will be around $156 (AMN Healthcare, 2015; Yakobi, 2017). Calculations suggest that the UCC will record a cash surplus in the first five years. This illustrates that starting a UCC will be an economically viable opportunity for the medical center. Analysis of Supply and Demand for the Urgent Care Center Aside from the 3,000 locals in the area who might benefit from the UCC at WMC, there is a large client base at the industrial park located near the center. Maxima Industrial Park comprises 10 companies, each having an employee strength of 2,000–3,000 individuals. In all, about 30,000 employees work here. There are just two primary health clinics and a retail health clinic around the industrial park, and WMC is the only multispecialty medical center located PROPOSAL OF NEW ECONOMIC OPPORTUNITY 5 within a 5-mile radius.

Therefore, there are not enough facilities in the vicinity to cater to the medical needs of employees working in the industrial park, creating a supply–demand gap. Being the only multispecialty medical center near the industrial park, WMC receives a lot of cases pertaining to work-related injuries and minor illnesses that require immediate attention. This overloads the ED of the medical center with noncritical cases and hinders it from being able to focus on patients admitted for treatment of critical, life-threatening diseases. Establishing a UCC within WMC’s premises will contribute toward bridging the supply–demand gap without compromising on the quality of health care delivered. While analyzing the data pertaining to the supply and demand for the proposed UCC, areas of uncertainty have been identified. The successful implementation of this proposal would depend on receiving timely approval of the planned bank loan and approval from the board of directors of the medical center to allocate funds to support this proposal. Another area of uncertainty is the level of awareness of UCCs in the neighborhood. Therefore, there may be a need to create awareness of the functions and necessity of a UCC. Patients may not want to avail services at the UCC because of their lack of awareness, and this might negatively impact revenue estimates. Conclusion Setting up a UCC will reduce the burden on the ED at WMC, making it more efficient. Patients will receive accessible, high-quality, affordable care without a scheduled appointment, and they will benefit from the after-hours care. Also, the UCC will bring in additional revenue for the medical center and help acquire new patients. Therefore, setting up a UCC within WMC’s premises will be a lucrative economic opportunity. PROPOSAL OF NEW ECONOMIC OPPORTUNITY 6 References Agency for Healthcare Research and Quality. (2016). The six domains of health care quality. Retrieved from safety/talkingquality/create/sixdomains.html AMN Healthcare. (2015). Convenient care: Growth and staffing trends in urgent care and retail medicine. Retrieved from /Industry_Research/AMN%2015%20W001_Convenient%20Care%20Whitepaper(1).pdf Chang, J. E., Brundage, S. C., & Chokshi, D. A. (2015, July 23). Convenient ambulatory care — Promise, pitfalls, and policy. The New England Journal of Medicine, 373(4), 382–388. Retrieved from com.library.capella.edu/docview//fulltextPDF/393FB954D5614B03PQ/1?ac countid=27965 Qin, H., Prybutok, G. L., Prybutok, V. R., & Wang, B. (2015). Quantitative comparisons of urgent care service providers. International Journal of Health Care Quality Assurance, 28(6), 574–594. Retrieved from com.library.capella.edu/docview/?pq- origsite=summon& Yakobi, R. (2017). Impact of urgent care centers on emergency department visits. Health Care: Current Reviews, 5(3).

Sample Paper For Above instruction

The rapid evolution of healthcare delivery systems in the United States underscores the importance of innovative solutions to improve efficiency, reduce costs, and enhance patient care. One such innovation gaining prominence is the establishment of Urgent Care Centers (UCCs), which serve as accessible, cost-effective alternatives to Emergency Departments (EDs) for non-life-threatening conditions. The proposed establishment of a UCC at Whilborne Medical Center (WMC) illustrates a strategic approach to addressing community healthcare needs while simultaneously creating economic benefits for the medical facility. This paper discusses the rationale behind the UCC proposal, evaluates its potential impacts on healthcare quality and efficiency, analyzes economic considerations, and explores challenges that may influence its successful implementation.

Rationale for Establishing a UCC at WMC

WMC’s primary mission to deliver high-quality healthcare within a community-centric model aligns well with the functions of a UCC. The center is identified in a locality with approximately 3,000 residents and is strategically positioned near Maxima Industrial Park, which employs around 30,000 workers across ten companies. Currently, many minor injuries and illnesses among residents and workers are managed by the hospital's Emergency Department (ED). This results in overcrowding and resource strain, which can compromise the quality of care. The establishment of a UCC aims to redirect non-critical cases away from the ED, improving operational efficiency and patient outcomes.

Healthcare Outcomes and Quality Improvement

The core benefit of a UCC lies in its capacity to improve timeliness of care and accessibility. Unlike traditional hospital emergency rooms, UCCs operate extended hours, often including evenings and weekends, providing immediate, walk-in services. This reduces wait times significantly, which is essential for patient satisfaction and prompt care delivery (Chang et al., 2015). Moreover, UCCs support the Institute of Medicine’s six domains of healthcare quality—providing timely, safe, patient-centered, efficient, equitable, and effective care (Agency for Healthcare Research and Quality, 2016). By diverting minor, non-urgent cases from the ED, the facility can focus its resources on more critical cases, ensuring safety and improving overall effectiveness.

Furthermore, UCCs are known to enhance health equity by extending services to varied socioeconomic groups and demographic backgrounds without scheduled appointments. Patients benefit from after-hours access, which is particularly advantageous for working individuals or those with limited transportation options. In addition, the shifting of minor injuries and illnesses to UCCs fosters a quicker, more efficient response, thereby improving patient satisfaction.

Economic Analysis and Feasibility

A vital aspect of the UCC proposal involves assessing its economic viability. The estimated capital investment of $350,000 includes construction, equipment, and furnishings, with funding to come from a combination of a bank loan and reserves. Based on an expected weekly attendance of 357 patients and a consultation fee of approximately $156 per patient, projections forecast a cash surplus within the first five years, indicating a sustainable and profitable operation (Yakobi, 2017). The lower infrastructure and technology costs associated with UCCs, compared to traditional hospital services, contribute to reduced expenses, ensuring affordability for patients and profitability for the facility.

The proximity to Maxima Industrial Park is a significant factor supporting demand. With approximately 30,000 employees, many of whom work in shifts and on weekends, there is a substantial, steady patient volume for minor injuries and illnesses. Currently, limited nearby healthcare options mean that these workers often seek urgent care at WMC, which alleviates the supply–demand gap in the community.

Challenges and Uncertainties

Despite promising projections, several hurdles could impact the successful implementation of the UCC. Regulatory approval processes, including bank loans and internal hospital approvals, must be timely and efficient. Additionally, public awareness is crucial, as potential patients may be unfamiliar with the benefit and scope of UCCs (Qin et al., 2015). Inadequate community outreach or misconceptions could result in underutilization, affecting revenue projections. Moreover, staffing requirements and operational costs—such as hiring additional medical personnel and support staff—pose financial and logistical challenges.

Patient continuity of care is another concern; frequent visits to different providers at UCCs can hinder comprehensive medical history documentation and personalized care. This raises questions about long-term management and coordination with primary care providers. Furthermore, high patient volume may lead to waiting times rivaling those of traditional clinics during peak hours, possibly diminishing the perceived convenience.

Conclusion

The strategic establishment of a UCC at WMC presents compelling healthcare and economic benefits. It promises to reduce unnecessary ED overcrowding, augment the efficiency and timeliness of care, and generate additional revenue streams. However, success hinges on careful planning, effective community engagement, regulatory compliance, and operational management. With appropriate measures to address uncertainties and challenges, the UCC can serve as a cornerstone of accessible, affordable, and high-quality community healthcare, fulfilling the dual goals of improved health outcomes and economic sustainability.

References

  • Agency for Healthcare Research and Quality. (2016). The six domains of health care quality. Retrieved from https://www.ahrq.gov/talkingquality/create/sixdomains.html
  • AMN Healthcare. (2015). Convenient care: Growth and staffing trends in urgent care and retail medicine. Retrieved from https://www.amnhealthcare.com/industry-research/
  • Chang, J. E., Brundage, S. C., & Chokshi, D. A. (2015). Convenient ambulatory care — Promise, pitfalls, and policy. The New England Journal of Medicine, 373(4), 382–388. Retrieved from https://com.library.capella.edu/docview/
  • Qin, H., Prybutok, G. L., Prybutok, V. R., & Wang, B. (2015). Quantitative comparisons of urgent care service providers. International Journal of Health Care Quality Assurance, 28(6), 574–594. Retrieved from https://com.library.capella.edu/docview/
  • Yakobi, R. (2017). Impact of urgent care centers on emergency department visits. Health Care: Current Reviews, 5(3).

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