Business Practice in a Nurse Managed Health Care Facility - Case Study Example

Business Practice in a Nurse Managed Health Care Facility Business Practice in a Nurse Managed Health Care Facility This case addresses the business management at Valley Medical Group. Formerly known as the Health Net, Valley Hospital purchased the Teaneck in the year 1996 as an urgent medical care provider. Now as a Valley Medical Group Teaneck, this medical care provider has a mission of blending the primary or urgent care with occupational medical; services that it provides to the entire community. With its continual quality medical service delivery, the hospital aims at becoming the number on service provider to the communities that it serves (Dunham-Taylor and Pinczuk, 2004). Quality service delivery and the becoming communities’ choice in medical provision, Valley Medical Group must have quality personnel, resources, and equipment that meet the current medical service delivery. Notably, from its records, it apparent that Valley Medical Group aims at providing quality medical services to its targeted communities especially from the fact that most of its medical staffs have the right certification that qualifies them from charging their duties. Additionally, the institution has numerous associates with experience that help in meeting the institutions mission towards attaining its vision. Moreover, the institution fulfills the regulations that require it to operate. This means that it will at all times be operational. The institution’s equipment also makes it the preferred institution for medical checkup especially the radiology (Perry, Serven, and Suescun, 2008). Meeting the laid down regulation including environmental regulation especially in the application of x-rays and disposal of wastes as well as having qualified radiology technicians, makes Valley Medical Group an institution of choice from by its targeted customers. Customers, in this case patients, will only go to medical centers where they are assured of their safety and not developing other medical conditionals fuelled by poor quality management of the medical institutions that they seek medical services. Therefore, Valley Medical Group’s environmental control mechanisms particularly its reduction of environmental radiation from X-ray makes attract many patients. Nonetheless, it should be noted this practices are never expensive if well followed and executed (Penner, 2004). For instance, the Valley Medical Group’s medical wastes are only paid for once a year as required by the state medical waste regulations. The financial management of every sound organization usually needs a sound financial management that is mainly pegged on the institution’s budgeting mechanism. It is noted that Valley Medical Group usually undertake annual budgeting that is usually done through a meeting that is instituted by the medical director, organization’s president, office manager, and financial officer among other key executives (Perry, Serven, and Suescun, 2008). Among the key features that are usually discussed in the Valley Medical Group’s annual budget include volume, revenue, supplies (that include pharmaceuticals, medical, and office equipment and materials), and insurance. The Valley Medical Group’s revenue is usually deduced by multiplying the average visits by the number of expected patients (Dunham-Taylor and Pinczuk, 2004). Therefore, revenue is a vital element of this institution since it can be used to project growth of the institution in terms of the fluctuation in the number of patients. From the budget, it is noted that the operating expenses based on the salary has a steady increase of 3 percent per year. This constant rate in the annual increment in the Valley Medical Group’s staffing salary may not be good for the financial growth of Valley Medical Group especially when there may be a decline in the number of patients. The response to budgeting at Valley Medical Group suggests that Valley Medical Group replaces or budget for new laptops or furniture annually. This not good for its financial forecasting since these items among other fixed assets must not be budgeted for annually but once in cases of dire need for their replacement or when there is institutional expansion. Therefore, in this case, Valley Medical Group may cut down on its expenses by reducing annual purchase of fixed assets that may not be in use. The operating and capital budget of this institution is essential especially in determining whether it is appropriate to invest on long-term projects (Perry, Serven, and Suescun, 2008). As had been noted some of the long-term investments are not vital for Valley Medical Group yet it seems its pursuing some of it. Hence, it would be vital if it cuts down on the same towards reducing the annual expenses. For instance, minor equipment and furnishing must not be an annual consideration, but practices that may be conducted once thereby saving the institution on extra expenses. Nonetheless, operational budget is usually vital since the amount allocated for operations determines the efficiency for operations within the institutions. For instance, Valley Medical Group’s operating cost for 2013 is nearly half of its operational cost for 2014. This may be factored by change in the operating expenses for the two years. With the institution’s projection using its revenue calculation, it is apparent that for the year 2014, it projected on a high patients’ check in from its 2013 statistics. Some of the items that affected the same immense increase in the expense include the increase in the natural gas and electric services among other items. Apparently, changes in the prices in most of the listed items for the two years may be mainly affected by global market instability. The prices of items have been high throughout all markets and the same has affected labor (Ward, 1994). Therefore, cutting on the Valley Medical Group’s operational expenses will call for a reduction in the use of energy related items. Alternatively, if Valley Medical Group’s management has not means on cutting on energy and energy related services, that increase its annual operational budget, it may decide to check on its staffing. The annual salary of the staff is 737,549.90; this figure is projected to be increasing annually at the rate of 3 percent. Assuming that this figure is for 2013, then in 2011 the figure was at 696,696.96. This is only so if new staffs have not been recruited; hence, Valley Medical Group may minimize its cost by reducing its annual employment rate but scheduling them in all appropriate departments so that they institution remains operational at all times (Penner, 2004). Apparently, noting from changes in the expenses and staffing that is mainly pegged on the revenue, it is apparent that there are increase on the same; thus, it is apparent that there were less clients in the previous operating years of Valley Medical Group than in the current years. The changes in the number of clients may be pegged on the merger of Valley Medical Group. Many factors may influence the profitability of Valley Medical Group; however, according to the hospital management, one of the major factors are the station that the physician in situated. For those owned by the hospital make no profit to the hospital thereby leading to lose that is calculated by the national average lost given by $177,000/provider. This concept implies that Valley Medical Group lost $226,000/provider. Therefore, the institution may reduce such loses by reducing the number of physicians owned by the hospital. Moreover, minimizing the staff numbers will also help in cutting the salary. The registration fee among other ventures generating money into the business should be encouraged. Even though the Valley Medical Group did not state how its implement the evidence based practices, this concept is fundamental in improving the cost and quality effectiveness towards promoting health interventions (Penner, 2013). The theory is empirical in influencing that direct practices in designing health practice programs and providing a means of evaluation of the same. Therefore, it is essential that Valley Medical Group understands the concept and apply the same theory in its health promotion and interventions. Some of the current interventions in the healthcare systems among other business ventures is the use of information technology is data management (Penner, 2013). Therefore, Valley Medical Group’s electronic medical record software (well known to them as Athena) is a crucial technology in its data management and transmission. The Athena makes it easy and faster for data transfer to different desired locations. Quality service deliver is a key to success in any service delivery institution. An organization may only know that it provides quality services to its clients when such clients are satisfied with such services. Therefore, Valley Medical Group’s quality measure and evaluation whereby it involves the already served clients is an appropriate means. Additionally, sending the same response to an external firm for evaluation is a perfect means to sincere answer to the measure of its quality service delivery (Penner, 2013). Depending on the report from the firm, it is upon Valley Medical Group quality control management to initiate improvement steps to meet the desired patients’ requirements and demands towards the growth of the hospital and to attract and maintain as many clients as possible. With perfect quality service delivery, Valley Medical Group will meet its vision with a lot of ease. It is worth noting that all that is depicted from the clients’ questionnaires are what they desire improvement upon; hence, meeting the goals at Valley Medical Group, the recommendations Press Ganey must be implemented systematically and with care placing the client at heart of such implementations. References Dunham-Taylor, J., & Pinczuk, J. (2004). Health care financial management for nurse managers: Merging the heart with the dollar. Sudbury, Mass: Jones and Bartlett Publishers. Penner, S. J. (2004). Introduction to health care economics & financial management: Fundamental concepts with practical applications. Philadelphia, Penns: Lippincott Williams & Wilkins. Perry, G., Serven, L., & Suescun, R. (2008). Fiscal policy, stabilization, and growth: Prudence or abstinence?. Washington, D.C: World Bank. Ward, W. J. (1994). Health care budgeting and financial management for non-financial managers. Westport, Conn: Auburn House. Top of Form Penner, S. J. (2013). Economics and financial management for nurses and nurse leaders. Bottom of Form Read More