Read the four colleagues discussion post and critique their SWOT and cost analysis, offering supporting or contrary ideas regarding strengths, weaknesses, opportunities or threats to be considered or additional thoughts about the impact of their cost and/or revenue projections. PLEASE INCLUDE 2 REFERENCES EACH REPLY
Read the four colleagues discussion post and critique their SWOT and cost analysis, offering supporting or contrary ideas regarding strengths, weaknesses, opportunities or threats to be considered or additional thoughts about the impact of their cost and/or revenue projections.
Having a positive return on revenue in the first year of business and staying in the positive in the following years. The role of non-pharmacological therapies for pain management is growing. Another strength is it may help individuals decrease the number of opioids they are using to control pain. Non-pharmacological therapies are considered safe, affordable, easy, and accessible therapeutic interventions (Hadoush et al., 2022). Non-pharmacological therapies are also recommended for patients with chances of developing adverse reactions to opioids. According to Tang et al. (2019), to lower the chances of developing adverse effects and to improve pain control in older adults, it has been suggested that non-pharmacological interventions be used in combination with analgesics.
Possible turnover rate of staff. The more vacancies there are on the staff the less patients are able to be seen and more revenue is lost on training new staff. Research highlights that nurses and patients agree on which hospitals provide good care and can be recommended and that poor-quality care is associated with burnout, job dissatisfaction and intention-to- leave (Stemmer et al., 2022). Job satisfaction is negatively correlated with nurse turnover intention. Another weakness could be supply chain issues. Approximately one-third of hospital operating costs are related to supplies (Gonzalez, Nachtmann, and Pohl, 2017; Emmet, 2019). This makes it imperative that hospitals work hard at examining their supply chains in order to increase the efficiency and reduce costs.
Present to the option to the shareholders to offer counseling for the patients taking opioids that are interested. Despite the fact that the United States has only a small fraction of the world’s total population, the U.S. population consumes an extremely high proportion of the world’s opioids (Hargett and Criswell, 2019). Another opportunity is to invite other potential shareholders to a presentation to show the projected five-year plan to obtain a higher budget to be able to hire more staff to treat more veterans.
Economy could crash like it did in 2008. Amadeo (2022) states, the Great Recession began well before 2008, that it began in 2006 when housing prices began falling. An additional threat could be another pandemic like the COVID 19 crisis. According to Katella (2021) on March 11, 2020, the World Health Organization (WHO) declared
COVID-19Links to an external site.
, the disease caused by the SARS-CoV-2, a pandemic. With the masking and isolation mandates many small businesses could not survive the loss of income. If such a pandemic were to happen again the proposed non-pharmacological therapies for pain management would be at risk of operating in the negative.
Where Costs and Revenues Fall in the SWOT Analysis
The costs and revenues fall in the strengths portion of the SWOT analysis as the proposed budget has showed a profit from year one through year five though it does display a slight decrease in profits each year. A review of the budget is needed to determine where any adjustments can be made.
Are the Costs High Enough to Represent Budgetary Issues?
The costs in the first five years are not high enough to cause budgetary issues unless there are unforeseen expenses such as high turnover rates or supply chain issues. After the five-year time frame a new budget would need to be considered to stay in the positive as the return on investments decreases each year.
Do Potential Revenue Streams Represent a Strength?
The decrease in the hospital readmissions for pain management and the number of opioids used while in the hospital can be considered as a strength. Non-pharmacological interventions addressing and treating lifestyle factors and psychosocial concerns that were stated effective to reduce pain enhanced patient’s quality of life (Hadoush et al., 2022).
SWOT and Cost Analysis
The SWOT and cost analysis are needed for every healthcare organization that is expected to offer a new product or service to its patients and their families, such as the remote patient monitoring (RPM). Where the SWOT analysis is a structured, systematic way of thinking providing a holistic perspective on the organization and the RPM’s strength, weakness, opportunities, and threats; the cost analysis is a decision-making tool that can be used in conducting evaluation of financial aspects of the proposed RPM service for my healthcare organization. Saragih, Nugraheni, and Adi suggest healthcare organizations use tools and strategies as such to improve the quality of service rendered, products used, and revenues generated (2022). The proposed implementation of the RPM service is to assist an already bombarded staff with follow-up protocols to encourage the decrease in preventable re-admission at my healthcare organization. Because as Stonehouse suggests, there has to be recognition of the drivers and levers for the proposed change (2018). The goal of the RPM service is geared towards making the availability and delivery of healthcare more efficient and patient centered.
Strengths, Weaknesses, Opportunities, and Threats of Remote Patient Monitoring
The remote patient monitoring (RPM) can be beneficial to both the organization and its patients and families but can have setbacks also. To determine these aspects, a SWOT analysis would be performed identifying strengths, weaknesses, opportunities, and threats that can be associated with RPM. The RPM hold many strengths that can assist in understanding the crucial need for its implementation, they are as follows:
· Efficient Care Delivery: This service provides healthcare professionals, particularly nurses, with the opportunity to monitor patients’ data in real time and treat patients remotely. It also reduces wait time and improves patient experiences.
· Patient Convenient: The RPM service allows patients access to have two-way communication with their healthcare providers while remaining in the confinement of their homes and having quality healthcare provided to them. Also, no internet service is needed for this service.
· Improved Patient Outcome: The RPM service assist healthcare providers in detecting any problem and intervening in a timely manner, meeting patients’ needs.
· Patient Engaging: RPM encourages and empowers patients to take an active role in the management of their health.
· Data Gathering and Analytics: RPM allows for the gathering of patient data to be analyzed by healthcare providers. Data which can be used to determine patterns and trends to improve patient care and the quality of care given, for the present and the future.
· Cost-effective: With RPM patients would not have to pay for costly hospital visits. Healthcare organizations can also save costs on excessive readmissions and increase revenues, such as insurance reimbursements due to decrease preventable readmission and other pay for performances bonuses.
Weaknesses are as follows:
· Data Privacy and Security: RPM makes data susceptible to potential cyber-system threats.
· Lack of Technological Understanding: Because RPM requires technological understanding; this can be difficult for patients who are not tech-savvy.
· Technology Reliant: The RPM services rely heavily on technology which is at risk of malfunctioning.
· Patient Compliance: Some patients may forget to use monitors used for RPM leading to gaps in data and data information that is insufficient and unreliable.
Opportunities are as follows:
· Sufficient Data Security: There can be adequate measures taken to protect patients’ data and ensure non-violation of privacy.
· Training and Education: Patients who are not tech-savvy can be trained to use their monitoring devices. Healthcare providers can also be trained to operate the RPM devices and interpret results gathered.
· Healthcare Cost: With the rise in healthcare, RPM assists in reducing costs associated with readmission, emergency room visits, healthcare labs and diagnostics.
· Increased Adoption: Healthcare providers can increase their services and increase clientele.
· Improve Quality of Care: RPM can assist in improving health outcomes for patients (such as decreased readmission) and improve patient satisfaction.
· Advancement in Technology: Presented would be increased opportunities for improving RPM and the monitoring devices used which can lead to improve ease of use and accuracy.
· New Revenue Streams: RPM offers the opportunity to increase its yearly revenues and create new opportunities for growth.
Threats are as follows:
· Data Security Threats: Privacy of the patient while communicating with a doctor can be hampered and patient information can be at risk.
· Lack of Adoption: Patient may prefer not to use RPM or be comfortable sharing their information via monitoring devices.
· Patient-Provider Collaboration: The RPM can disrupt the traditional patient-provider relationship that can lead to patient dissatisfaction.
· Regulatory Compliance: Non-compliance of regulatory requirements can lead to legal penalties which can be damaging to the organization’s reputation.
· Competition: the demand for RPM service is expanding, increasing competition from other healthcare organizations.
Costs and Revenues in SWOT Analysis
Remote patient monitoring (RPM) can be beneficial and indispensable to the healthcare organization, even though there are some disadvantages. In analyzing the SWOT analysis of the RPM service there are areas where cost and revenues fall. In the area of strength, you can see where cost falls in data gathering and analyzing. Cost that falls in the weakness area are patients and healthcare providers lack of technological understanding, and technological reliance. Costs that fall in opportunities area are sufficient data security, training and education. Costs that fall in the area of threat are regulatory compliance and competition.
Revenues that fall in the area of strength are efficient care delivery, improved patient outcome, and cost-effective. There are no revenues associated with the area of weaknesses for the RPM service. Revenues that fall in the area of opportunities are increased adoption, improved quality of care, advancement in technology, new revenue streams. There are no revenues associated with the area of threats for the RPM services.
In conducting cost-effectiveness analysis of the RPM service, the cost mentioned in each area of the SWOT areas does not pose a budget threat because these costs are not so high that they cannot be returned in short periods of time. Also, measures can be taken to mitigate these costs, such as developing effective marketing strategies, investing in comprehensive data protection (Penner, 2016). The potential revenue streams are strengthening to the RPM service and the organization because these are revenues that will be returning year-round as the RPM service continue to provide quality patient care, grow in clientele, and attract other investors that the organization can partner with. In summation, the SWOT analysis depicts more benefits than costs; thus, should generally be a favorable project for the organization to undertake.
In the SWOT analysis of the RPM service concludes that although there are threats and risks involved, once mitigated strategically, this service can be very efficient and cost effective for both organization and patients and their families.
The product I have proposed is purchasing a new MRI machine for the hospital where I am currently working at M Health Fairview. The company I will be purchasing the MRI machine from is GE. GE sells the MRI machine for $1,000,000 (GE HealthCare, 2022). Upon reflecting on the cost, it does look like a lot of money. The installation for the MRI and the environmental setup will total the overall start-up cost to $1,400,000.
SWOT Analysis Template
· Purchasing a brand-new MRI for the facility will help ensure the accuracy and integrity of diagnosis and treatment of patients’ remains. “MRI has traditionally been used as a high-end modality, and although shown extremely important for many types of clinical scenarios, it has been suggested as too expensive by some. This editorial will try and explain how value should be addressed and gives some insights and practical examples of how the value of MRI can be increased” (Van, 2019). According to the National Health Institute, an MRI machine should be changed out every 10 years or at least reassessed for accuracy or any damages. By changing to a new MRI machine, we can see clear images.
· Another strength of my proposal is that the return on investment is 367%. By purchasing a new MRI, it will take M Health Fairview approximately 2.2 months or 79 days to make the initial $1,400,000 from purchasing and installing back.
· The installation period is time-consuming and can affect the overall efficiency of the facility. There are four MRI machines at this hospital and eliminating one of them for the new purchase and installation will create long lines for patients and affect the overall flow of the very busy facility.
· Another weakness is that although these are the numbers provided by the GE MRI company, there are lots of taxes and other costs that may come up. For example, removing the previous MRI is costly.
· By purchasing a new MRI, the accuracy of the diagnosis will be much better due to the overall image clarity. This is an opportunity the hospital can take advantage of.
· Just like any purchase of a new machine, there is always room for errors and breakdowns. With, M Health Fairview will need to be aware that there may be times when the machine will need repair.
· Another threat is that the overall installation period will affect the efficiency of the facility. There are four MRI machines and eliminating one will slow down the flow of the facility.
For this assignment I am purchasing a bladder scanner for the facility as it lacks this piece of equipment. More than 560,000 patients develop CAUTI each year (ANA, 2023). This is a tool used by healthcare professionals to identify, diagnose and treat a myriad of disease processes. I am focusing on reducing CAUTI within our facility. According to Verathon use of this equipment can reduce CAUTI by nearly 50% (Verathon, 2023). The rate of infection for 2022 was 46 patients.
One device will be sufficient because it is a small hospital, 6 beds in the ED and 12 on the unit. Startup costs are $9038.90. Of that $8500 represent the initial purchase of the bladder scanner and $538.90 are the initial operating expenses. I chose a Verathon Bladder Scan Prime Plus as it is not only what I am familiar with but stands up to heavy daily use. This device also comes with a 5-year warranty tailored to each provider’s or facility’s needs. Included with the warranty are software updates and training provided by company personnel. (Verathon, 2021). In obtaining the appropriate warranty with initial purchase, maintenance costs will be negated over the next 5-years.
According to the AHRQ a CAUTI costs from $4,694–$29,743, I stayed on the conservative end and charged $4,6694. Even with the infection rate being cut in half, the facility is still in the negative by $61,022. With research I found that a bladder scan will cost a patient around $155. I determined that this exam will be performed once per shift per MD order. The average number of patients with a catheter in place last year was 657. This creates a profit of $203,670 annually. Once the cost to the facility for treating infections is deducted, a profit of $142,648 is seen annually. The total revenue for five years is $713,240 and the return on the investment is $704,314.60.
I found the strengths of my proposal to be the reduction of CAUTI rate by 50%. The major weakness is lack of knowledge around when and how to use the equipment. According to Medline only 59% of hospitals have a policy in place for appropriate use of a bladder scan (2023). The opportunities can be found in high-quality patient care as this testing is recommended for decreased urinary output post-op, due to spinal cord injury, an enlarged prostate, or from a kidney stone (Cardiac Direct, 2020). I could not identify any threats to the current budget. My purchase saves money by reducing infection, maintenance costs are minimal, and it provides revenue from the ultrasound exam.