The financial decisions that a health care organization makes today can have far-reaching consequences for its future survival, from enabling its providers to better deliver care and services to patients to supporting the organization’s ongoing clinical research initiatives to facilitating the essential functions and processes its professional staff performs on a daily basis.
To prepare for this Application Assignment, review the information on value realization, return on investment analysis, and using cost information to make special decisions in health care organizations presented in this week’s Learning Resource readings, as well as the information on capital investment analysis and return on investment-including financial (revenue-producing) and non-financial (non-revenue-producing) return on investment discussed by the presenters in this week’s Course Media. Next, research methods that may be utilized to evaluate both the financial and non-financial returns associated with investments in health information technology. In conducting your research, use both scholarly journal databases and resources available on the World Wide Web from reputable organizations, such as industry/trade associations.
To complete this Application Assignment, write a 3 to 4-page paper in which you:
NEED ONLY 1.5
• Discuss the potential financial (tangible) and non-financial (intangible) benefits associated with the adoption of health information technology, providing at least two specific examples of each.
• Next, describe in detail at least three methods/techniques that may be utilized for evaluating the returns associated with HIT investments. Ensure that at least one of the methods you selected includes procedures for evaluating non-financial benefits.
Your written assignments must follow APA guidelines. Be sure to support your work with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate.
Discuss and expand on the non-financial and financial benefits into seperate paragraph with specific examples of each and expand on the ROI analysis to include process financial measures available to identifiy ROI such as payback Period, Net Present Value NPV, and Internal Rate of Return (IRR). listing the advances and disadvantages of using these measuress. for example according to Arlotto et al. (2007), the payback period is not as finincially precise as other measures of finincial return and often produce bias for early returns for a project, instead of measuring the magnitude of the return. However, while this may be so, although the payback period is usually long, the fact that this initiative has a multi-year implementation horizon may mitigate that measurement (Arlotto, et. al., 2007). The remaining measures clearly indicate that the closed loop medication administration initiative would be considered a “go” (Arlotto et al. 2007). In addition, the intangible benefits associated with saving lives by avoiding medication administration errors lend further impetus to adopting this intiative for implementation (Arlotto, et al. 2007). This is a passage from the text Beyond Return on Investment Expanding the Value of Healthcare information Technology (Arlotto, Birch, Crockett, Irby, 2007).
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