Implementation Plan for a New Economic Opportunity

Introduction

The proposed economic initiative to the senior management of the Palmetto Health Tuomey is setting up a new Tele Tracking system on its premises. The Palmetto Health Tuomey is a health facility that offers quality healthcare services to the Sumter community. The economic initiative through a Tele Tracking system that will be supported by an online portal to manage current admissions, discharges, and custodial services upon discharge and satellite support that controls the admission, discharge, and custodial flow. This system targets to improve the quality of health services by ensuring timeliness, reaching the clients at their homes, minimizing health inequalities in the community, enhancing patient monitoring systems and guaranteeing overall efficiency in operations (AMN Healthcare, 2015).

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Conducting economic and environmental evaluations were apt. According to (Rabarison et al. 2015), conducting economic evaluation ascertain the feasibility of implementing the new tele- tracking system before presenting the business plan to the stakeholders of the hospital through its senior management. According to the analyses performed, the senior management believes and are confident that the economic initiative is viable and has the potential of benefitting the hospital in both the short and long term. After this determination, a comprehensive plan for the implementation meant to guide the setting up of the economic initiative has been developed. The implementation plan includes the creation of a plan for the new Tele Tracking system, the plan to roll out the initiative to enable the facility to allow an ethical implementation and equitable culturally that will ensure that the new system improves the quality of services (Plowman, 2014). There will be an analysis of how the initiative will affect the care setting and the manner in which the adverse effects will be controlled.

Additionally, there will be an explanation of strategies that have been integrated into the suggested system of Tele Tracking that will ensure that it remains viable regardless of the environmental dynamics that may influence it negatively. Lastly, there will be a justification of the relevance and worth of the quantitative together with quantitative economic and financial (Qin, H., Prybutok, G. L., Prybutok, V. R., & Wang, B. 2015). Secondary sources of data will be used to support the evidence exhibited by the initiative analysis.

The proposed new Tele Tracking system accompanies projections on the expenses that the organization is yet to incur for the five-year period and the revenue the initiative is likely to yield for the same period through a budget. The creation of this budget has been reliant on the assumption that the purchase, installations, and the completion of the new technology framework will take place and are completed by the end of the year 2018. The use of the new Tele Tracking system will start at the beginning of the year 2019. Consequently, the first year of budget operation is 2019 and the fifth year is 2023 as contained in the budget.

The annual revenue over the 5-year period has been calculated through the multiplication of the anticipated volume of patients by the average amount charged for consultation (Plowman, 2014). It is approximated that 612 patients' will use the portals on both phone and online portals every week and about $269 will be charged per patient for every service. Consequently, the average revenue that will be obtained in the first year will be $8070000. The revenue of the new Tele Tracking system is anticipated to increase by 5.3% each year (U.S Bureau of Statistics, 2017). The expenses that will be incurred when operating the new Tele Tracking system will include salaries of the staff, insurance, basic utilities, and other operating costs such as marketing and the administrative costs.

For the first three years, the staff salaries per year for the first three years including those for the engineers will be $397,714.12 for the telecommunication engineers for the first year of operation, $192,000 for the nurse practitioners and $120,000 for the clinical assistants. The receptionist will have $54,860 for the first year. According to the Economic Policy Institute (2018), the rate of growth of an employee's salary is 2.7%. In this analysis, there is an assumption that the growth rate of the employee's salary is 3% per year. In the fourth and fifth years, the facility will incur additional costs to cater for the employment of a full-time telecommunication engineer and more nurse practitioners because of the projected increase in the number of patients to be served by the system.

The increase in the cost of basic utilities in the hospital is assumed to be 5% per year as the rise will be due to the increasing numbers of the system subscribers and the users (Economic Policy Institute, 2018). Consistent with the fact that more staff will be hired during the fourth and fifth years of operation, there is an expectation of an increase in the costs of insurance within the two years. According to the financial statements of the hospital, other operating expenses are presumed to be 12% of the overall revenue for the year. With the use of a present value discount rate of 2%, the current value of the total cost over the period of five years is estimated at $11,596,672.19; this is according to the appendix below the references page.

The calculation of revenue depended on the fee charged on patients and the projected number of patients using the new Tele Tracking system over the five years (Golinkin & Danielle, 2013). According to the statistics on most facilities in the region, the facility expects to serve an average of 612 patients every week, and every patient is expected to pay $269 per visit and as a result, the facility will obtain an annual benefit of $4,679,998.05 (for more information see the appendix on Cost-Benefit Analysis Over a 5-Year Period). There is also an assumption that the interest will increase by 5.3% every year for the five-year period according to the statistics on the national average (U.S Bureau of Labor Statistics, 2017). According to the estimated revenue over the period of five years at a discount of 2% of the present value, the current value of the expected benefit is approximated at $66,536,874.25. The net profit is estimated at $54,940,202.06 after subtracting the present value of total benefits from the present value of total costs. As observed in the positive net benefit, a conclusion can be obtained that the proposed new Tele Tracking system will is an economically viable initiative.

The total amount expected as the capital cost is estimated at $600,000. The Palmetto Health Tuomey will provide one portion of this amount while the rest will be offered through a bank loan. The hospital management will provide $300,000 to fund the project while the bank will provide the other half of $300,000. Presuming that the tenure of the loan is five years and that the interest rate is 7% per annum, the loan repayment is anticipated to be $71102 per annum.

According to the budget, the Palmetto Health Tuomey will earn a cash surplus during the first five years. The organization will receive more revenue in the first three years, but the amounts will reduce during the fourth and the fifth years. This will be due to the recruitment of newer staff in response to the growing population of patients in need of the services of the Tele Tracking system. The cash surplus in the initial five years is approximated at $14,020,585.10 (confirm from the Appendix for more information on the 5-year budget for the proposed economic initiative))

Propose a plan to roll out an economic initiative that will enable a care setting to successfully implement it in an ethical and culturally equitable way that will ensure the initiative achieves quality or service improvements

Rolling out the plan to the public and observing its impacts according to the desires of the plan is essential to every project. Rolling out the new Tele Tracking system to the users requires setting up the timeframe for everything, and this is the first step. In this context, there is a presumption that the senior management of the organization will take two months to approve the budget and for the desired financial institution to accept the loan request. The technology firm selected and awarded the tender for the design and construction of the new system will take about two months to customize the new Tele Tracking system from the available templates and make all the tests to ensure that it satisfies the entire requirement and has all the features. This process is expected to begin in September and ends in December 2018. Upon the completion of consultations, discussions, and testing of the new system, the initiative is anticipated to start operating on the first day of the first month of the year 2019.

Some of the critical internal stakeholders of this economic initiative in the Palmetto Health Tuomey include the nurses, the physicians, the senior management, the telecommunication and information technology, the clinicians and other staff members (AMN Healthcare, 2015). An active engagement together with optimal participation by the stakeholders can ensure that the facility achieves better clinical outcomes among the patients, improve the quality of service delivered, make its services efficient, and improve the patients' safety. Successful implementation of an initiative requires optimal collaboration among all the relevant stakeholders to obtain their inputs during the initial phases of the decision-making and the execution. Regular meetings among the stakeholders will be appropriate to discuss the progress of the new Tele Tracking system and develop further strategies of improving the accessibility of the healthcare services among the population served after implementing the new economic initiative.

The Palmetto Health Toomey has always been guided throughout its operations by the health outcome measures, and it has strived to reduce the rates of mortality, lower the prices of readmissions, minimized the injuries during treatments and eradicated the cases of misdiagnosis. The implementation of this new technology will also target the outlined factors to ensure improved patient safety, improved access to health care, and enhanced operational effectiveness and promotion of efficiency in service delivery to ensure patient satisfaction. Coincidentally, the Institute of Medicine (IOM) also encourages the focus on six aspects as a means of improving the quality of care services and promoting the patient welfare through timeliness in service provision, patient-centeredness, safety, efficiency, effectiveness, and equity. Comparing the requirements of the IOM and those outlined by the Palmetto Health Tuomey, there is a realization that the facility has simplified the projections tackles them in a precise manner since the two cases are in compliant to one another and their operations are seamless. As a result, the new technology and other outlined strategies by the organization are a step ahead of the general ideas generated to improve the healthcare in the community. To [enhance and maintain the sustainability of this economic initiative, all the staff operating the new Tele Tracking system are urged to work according to the mission of the organization always (Yee, T., Lechner, A. E., & Boukus, E. R. (2013).

In every healthcare venture, patients are critical external stakeholders. The new Teletracking system will ensure that the patients obtain quality and timely health services from the excellent health practitioners employed in the facili...