The Causes of Lowering in the Rates of Medical Services - Term Paper Example

Capstone Paper 1. Provide a clear and concise statement of the opportunity to be addressed. The opportunity statement should be no more than two or three sentences and, in many cases, a single, well-crafted sentence is sufficient. The current lowering in the rates of medical service by different providers has created a two sided problems for medical service practitioners, that is, they either have to reduce rates and incur substantial losses, or charge the same rates and lose customers. There is a chance that I can seize here, being a supervisor of an established medical center in orthopedic surgery, it would fall upon me to be the one to create specific judgments on the subject of the course and about where we would fit as a group. One of the aspects that would require specific attention is the fact that there is a chance to be capable of offering high quality medical services to other segments of the community. This will be done by way of delivery of the services. One of the examples that can be gleaned from such a kind of service is the availability of “high quality medical cares” (Getting High Quality Medical Care in a Changing Healthcare Landscape, 2012). This can be completed by finding a competitive border that we, as medical practitioners, only can offer. One of the plans that can be looked into here is the ability to be capable to provide. It is essential to recognize thriving cottage businesses because the dilemma could be mandated to apply corporate and industrial growth aspects for the solution. It has been sought subsequent to the fact that different market reformers have looked for methods to be capable to transform medicine into a current corporate scheme. This is cited because the dissimilarity is in the sense that it proposes its services for a fee simply for the reason that the customer or the patient trades in convenience and comfort in the sense that “MRI scans” (MRI Scans, 2012) could now be probable if there is a possibility of the medical practice to comprise of a convenient and portable MRI. 2. Discuss the importance of an administrator’s vision in turning the challenge into an opportunity. Identify the organizational structures that would be most affected by this situation and explain the impact on each organizational structure identified. One of the major contributions of an administrator to a companies’s vision is to be capable of recovering that particular company from whatever setbacks that may befall upon it. One of the things that will be challenging as a medical service practitioner is the competition’s capability to lower their cost and still preserve business. There are various alterations in equipment, “cultural and social expectations,” (Wheeler, n.d, pg. 2) in addition to economic states that will take place in one’s lifetime. This latest problem that has beset the business should be closely be focused on. As the administrator of the company, it is my vision to be able to completely steer the practice into secure and profitable waters. One of the things that needs to be considered here is the continuous call for superior execution. If there is no solid leadership, then the business and the practice will be cast into a downward spiral and will finally cease to exist. What occurs with the practice subsequent to a challenge is posed by dissimilar warring groups and it up to the one in charge. Due to this, the mechanistic and the organic and organizational structures might be influenced. The impact upon these types of organizational structures will be fairly jarring since there will be some restructuring needed to be done if the medical practice would move to delivering care in its place of citizens seeking them out. 3. Consider and discuss how the environmental factors such as competition, reimbursement, employment etc may impact the opportunity of starting MRI services. Explain the risks or benefits that the practice would face by attempting to capitalize on the opportunity. One of the major factors that the medical practice must throw light on is the maintenance of this latest venture, that is, they must decide to grab it by the neckline and go with it. On the other hand, because of the various factors that are concerned, this particular move could certainly prove very risky. However, there are for all time risks, which may also translate to advantages. Regarding the mechanistic type, this type of organizational structure will be even more strengthened due to the pressure to be capable of reacting in the right way. It is very significant that citizens will always look to the present circumstances in order to read the diverse signs that could lead to a potentially disastrous result for the setting up of the “MRI service” (MRI Service Save Time and Money, 2006). The purpose of the management here is to efficiently arrange the various kinds of steps that should be taken in order to completely take advantage of the challenge that is being posed to the firm and the practice all together. Being able to acknowledge the risks will then reduce the negative influence that it will cause on the various results that could come out of it. Risks such as not being able to correctly administer MRI scans or tools gives rise to damages as the means of transportation of the equipment must every come into the larger photo when they are all analyzed carefully. 4. Explain what human resource plans or initiatives are needed to manage the strategic goals associated with the identified opportunity. There will be various requirements for this particular process to turn into flourishing. Human resource requires adapting a method wherein each of the worker has to understand the various policies and things that will need to be executed for this specific opportunity. It is significant that every different circumstance will be run throughout by the people in the medical practice with the intention that they all have the same goals as the rest of the industry. Definitely, there must be suitable briefings and explanations as to where the preparation is going and why it is going there. The HR department must always be translucent with the management side so that both sections will basically know what is missing. If there is an essentiality to give more guidance regarding up selling of the practice’s new facility or in a different area, then there must be a transparent and continuous communication among the two sides in order for the workers and the various people who are connected to the practice to be informed of any mistakes. What’s significant is that the planned objectives of the management should be clearly communicated to the HR department with the intention that it will be measured in a joint effort in preference to a different statistic of being a different practice that failed due to “miscommunication” (Miscommunication, 2008, para. 1). 5. Develop various specific budget profiles that achieve optimal allocation of organizational resources to manage the opportunity. ◦ A line-item budget for personnel cost. “The line-item budget is a financial document that lists how much the local municipality will spend on every item that it uses” (Rosenberg, n.d, pg. 8). Operating costs can be separated to contain such items as printing, utility costs and office supplies. The cost contains capital expense such as furniture, office equipment and vehicles. The main course of a line-item budget is that of accountability and expenditure control. “The line-item budget is relatively easy to prepare and illustrates how much money is appropriated to specific cost categories” (Module Two Options and Objectives in Budget Design and Preparation, n.d, pg. 9). Following are the calculation of line-item budget. Personnel expenses: Administrator salary $ 10, 0000 Benefits $ 5,000 Physician salary $500,000 Benefits $30,000 Technical staff salary $180000 Benefits $60000 Total salaries $780000 Total benefits $95000 ◦ A functional budget to calculate personnel costs per MRI procedure. The functional budget will depend on the industry we are budgeting for. A function can refer to a department or a process. “Functional budget relates to various functional activities of the business, e.g. Sales, purchases, production, personnel, cash” (Chapter 18 Budgetory Control, 2007, pg. 872). Following are the calculation of functional budget. Administrator salary +benefits = $5020 Physician salary + Benefits = $500,000 Technical staff salary + benefits = $60000.5 ◦ A program (clinic) budget for providing health care services for 3000 patient visits 1. Salaries/wages $780000 2. Benefits $95000 3. Equipment $1230000 Total $ 2019500 Reference List Chapter 18 Budgetary Control. (2007). Practical Costing. Retrieved from Getting High Quality Medical Care in a Changing Healthcare Landscape. (2012). Joslin Diabetes Center. Retrieved from Module Two Options and Objectives in Budget Design and Preparation. (n.d). Retrieved from MRI Scans. (2012). Medline Plus Trusted Health Information for You. Retrieved from MRI Service Save Time and Money. (2006). Sound Imaging. Retrieved from Miscommunication. (2008). Wordnik. Retrieved from Rosenberg, Philip. (n.d). Program Budgeting Modernizing Financial Management for Hungarian Local Governments. Retrieved from < http://www.urban.org/pdf/prog-budget.pdf> Wheeler, Jeannie. (n.d). How To Interview. Retrieved from Read More