The five organizational recommendations that HCA should implement


There are five recommendations that HCA can apply to be able to compete in the healthcare field effectively. The five recommendations include; prioritizing of the organization’s patients, finding a way to have all the experts working together in order to bring about effective care delivery, providing holistic care to patients as well as to their respective families, integrating technology into most if not all the organization’s activities, and evaluate the whole care provision team.

The simple strategy of prioritizing the patients will bring about a greater understanding that will sequentially improve the service quality at HCA. By having all experts working together to drive adequate care provision, HCA will achieve integrated genomics that will point to the creation of new opportunities because of medical breakthroughs that will be achieved. By so doing, the quality of service offered will be enhanced.

The majority of patients that seek healthcare services from HCA need advanced care. Besides, they also have spiritual and emotional needs that they want to be sorted. Coming up with mechanisms and solutions that cater to matters mentioned above is part and parcel of providing holistic care to patients as well as their respective families.

By digitizing every aspect of care provision as well as integrating technology into the institution’s activities, the institution becomes better placed to compete against other health care or health service providers. Implementing a strategy that emphasizes the evaluation of the care providing team will bring about a general improvement in the operations of the organization. The results of the evaluation processes are bound to give insight on how activities of the organizations can be improved. Through coming up with solutions on how to improve the operations of the organizations, the general improvement of the organization’s actions is guaranteed.

Prioritization of the strategic recommendations

In terms of prioritization of the recommendations, the first proposal that should be implemented is the evaluation of the whole care team as well as the evaluation of employees’ engagement. Employees are a high priority considering that they are caregivers and that they are the ones providing services that the organization offers. Also, all the other four recommendations are all dependent on the employees. If employees are satisfied or contented with their jobs, they will provide exceptional services.

The second most important recommendation is the prioritizing of patients. The primary reason why the organization exists is so that it can meet the needs of the patients. By prioritizing the patients, the organization will come up with strategies that are geared at satisfying the patients’ needs. The other three remaining recommendations are dependent on the prioritization of patients by the organization. Due to patient prioritization, the organization will consider ways to have all the experts working together to bring about effective care delivery, provide holistic care to the patients as well as their respective families, and integrate technology into most activities of the organization.

An estimate of the resources needed to implement each of the strategic recommendations of the organization

Evaluation of the care provision team

By half of 2018, HCA had 249,000 employees (Kester & McComb, 2018). It will be prudent that an evaluation of the employees is carried out to know the issues that affect the employees properly. Considering that the organization has many employees, it will be capital intensive to have all the employees evaluated. It is for that reason that 1% of the employees are evaluated (2,490 employees). All departments of the organization will take part in the evaluation process. The evaluation process will take three and a half months, that is 70 working days, and the human resource department of the organization will carry it out. It is expected that every day, a minimum of 35 employees will be evaluated. Since the evaluation will be an in-house affair, the cost of assessing on a single day is estimated to be at $1,500. The estimated cost of carrying out the whole evaluation process will be $105,000. Five human resource officers will take part in the evaluation process.

The prioritizing of patients

Prioritization of patients will happen after the evaluation of employees has occurred, because the employee evaluation will provide insight into what is needed for employees to prioritize patients. For all employees to understand the importance of how to prioritize patients, they will have to undergo training. All employees will undergo customer service training, and an outsourced training company will carry out the exercise. All managers will be expected to attend a one-week training session. It will be the manager’s duty to train their subordinates. It is estimated that the organization has 80,000 managers. The cost of training a manager for one week is estimated to be $600. The total cost of training all the 80,000 managers is estimated to be $48,000,000.

Having all the experts working together to bring about effective care delivery

To ensure that all the knowledge of the organization’s experts can be harnessed to drive effective care without removing them from their physical location, a system that allows for instant communication between the experts will be developed. The organization has approximately 1200 experts in caregiving. A system that pools all the experts will be developed. The system development is expected to take at most three months. The organization’s IT department will have the duty of developing a system that will cost approximately $120,000.

Availing of care that sorts patients as well as their families

To ensure that there is availing care for patients that sort them as well as their families; health organizations have to offer patient education as part of its services (Potter et al., 2016). All nurses will be expected to take part in training that will equip them on how to offer patient education. The training will involve an online program that requires nurses to train for a minimum of 8 hours. The training program will run for a month. The cost of coming with a curriculum and implementing the training program is $45,000. The training program will occur once every year.

Integration of technology into most activities of the organization

Most of the activities of the organization have been integrated into the state of the art technology in the field of medicine. Some events have not been integrated, and to integrate all the activities to technology, a hospital management system will have to be implemented. The organization will have to outsource for such a system. The estimated cost of outsourcing such a system is $57,000 (Parker et al., 2017). The system is expected to be developed and delivered within two months.

The validity of the recommendations

Three financial ratios will assess the validity of each recommendation. The first financial ratio to be used is the return on investment ratio. The ratio mentioned above tries to measure the validity of investment about the cost of investment. Calculating the return on investment ratio is relatively simple as the returns on the investment are divided by the cost of investment (Opperman et al., 2016). As it stands, the first recommendation talking about evaluation of the whole care team, as well as the evaluation of employees’ engagement, is expected to provide information on what is needed to improve the operations of the organization.

The employees need to be trained in customer service to improve the organization’s operations. Besides, the technology used by the organization needs to be improved. It is estimated that an improvement in terms of the organization’s activities will double the number of patients/clients of that organization in five years. The doubling of the number of patients directly connects the income generated by the organization.

By the end of 2018, the organization made an income of $820 million. If the organization’s employees undergo training in customer service, the expected income for the following year will be expected to be $984 million.

The total cost of improving the organization’s operations = cost of evaluating the care provision team as well as the evaluation of employees’ engagement + The cost of prioritizing patients + The cost of having all the experts of the organization working together to bring about effective care delivery + The cost of providing holistic care to patients as well as their respective families + The cost of integrating technology into most activities of the organization.

The total cost of improving the organization’s operations=$105,000+$48,000,000+$120,000+$45,000+$57,000=$48,327,000.

Return of investment ratio = (Value of Investment – Investment cost) / Investment cost

ROI= ((984,000,000-820,000,000)-48,327,000)/ 48,327,000= 2.39

The other financial ratio that will be used is the net present value. The above ratio can be explained as the difference in cash flows, cash outflows, as well as cash inflows (Leyman & Vanhoucke, 2017). The formula for calculating the NPV is; expected cash flows – invested cash.

NPV= 164,000,000-48,327,000=115,673,000

The third financial ratio to be used is the profitability index. The index mentioned above tries to shed light on the relationship that exists in the benefits and costs of a proposed project. Calculating the index is by having a projection of expected cash flows divided by the investment capital. Since the projection of the above recommendations are that the organization will double its current income in five years, the figure to be doubled will be divided by the total duration, which is five years. In this case, 820 million will be divided by 5 years to get the projected cash flows for a single year.

By using the formula mentioned above PI= (820,000,000/5) / 48,327,000= 3.39

Recommendations

All recommendations are valid, considering that all the three financial ratios indicate the investments are viable. If the profitability index is above 1.0, the investment is a good venture as it stands to bring profit. If the NPV is a positive figure, the investment is a good venture as it stands to bring profit and if the return of investment ratio is above 1.0, the investment is a good venture as it stands to bring profit (Ehrhardt & Brigham, 2016).

In terms of prioritization of the recommendations, the first recommendation that should be implemented is the evaluation of the whole care team as well as the evaluation of employees’ engagement. The second most important recommendation is the prioritizing of patients. The third most crucial recommendation is bringing together of all experts to accomplish sufficient care provision. The suggestion is closely followed by availing of care that sorts patients as well as their families, and the integration of technology into most activities of the organization.

References

Ehrhardt, M. C., & Brigham, E. F. (2016). Corporate finance: A focused approach. Cengage Learning.

Kester, W. C., & McComb, E. R. (2018). Capital Allocation at HCA.

Leyman, P., & Vanhoucke, M. (2017). Capital-and resource-constrained project scheduling with net present value optimization. European Journal of Operational Research256(3), 757-776.

Opperman, C., Liebig, D., Bowling, J., Johnson, C. S., & Harper, M. (2016). Measuring return on investment for professional development activities: Implications for practice. Journal for nurses in professional development32(4), 176-184.

Parker, K. R., Srinivasan, S. S., Houghton, R. F., Kordzadeh, N., Bozan, K., Ottaway, T., & Davey, B. (2017). Health informatics program design and outcomes: Learning from an early offering at a mid-level university. Education and Information Technologies22(4), 1497-1513.

Potter, P. A., Perry, A. G., Stockert, P., & Hall, A. (2016). Fundamentals of Nursing-E-Book. Elsevier Health Sciences.

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