Financial strategy and Value-based purchasing
A good financial strategy can always be improved. Having knowledge of your organization’s finances provides the leverage to make decisions that affect the outlook and goals of the company. This assignment gives you an opportunity to examine company practices from a financial lens, which provides you with insight into what drives financial decisions for a health care system.
Obtain a recent financial statement for your organization, detailing expenses and revenues (This can be from within the last year. You may need to work with your supervisor to obtain a financial statement.).
Note: If you cannot access a financial statement, discuss it with your faculty member.
Write a 1,225- 1,550-word report on the major trends in your organization’s expenses and revenues. Include the following points:
Analyze any trends in expenses and revenue that you see. Are they on target to meet budget goals?
Can your organization’s reimbursement strategy be improved to increase revenue? If so, what would it be, and how would it be implemented?
How can your organization use its financial performance to build its brand?
Cite any references to support your assignment.
Format your citations according to APA guidelines.
Respond to both responses with 50 words minimum and a reference for each response.
The word reimbursement refers to repayment of money to a person who has lost or spent money . The Value based purchasing refers to a payment model in which incentive is given to the physician , nurses doctors and other medical staff according to their performance .
Value based performance or value based purchasing is highly successful. Because value based purchase is based on performance that is comes after treatment of patient . Patients are satisfied and it is also less expensive. Patients are highly satisfied because doctors and nurses do their best to achieve higher income. Types of reimbursement : 1) Fee for service : This model is solely based on what performance doctors give. For example 20 minute consultation etc.. Capitation : capitation is a payment received by a service provider for a specified population for a period .
Capitation provides incentive to doctors or other staff by increasing their income. Out of the three mode of payment the best one is payment based purchase because through this doctors can provide more satisfactory services to patients . This all is less expensive and poor patients can also get best services.
Value-based purchasing (VBP) is financial incentives programs that aid healthcare providers with the quality treatment provided to patients. These incentives are linked to the provider’s performance on a set of defined measures to achieve quality healthcare rather than quantity. VBP focuses on better personal care, population health, and lower costs (CMS’ Value-Based Programs, 2022). Measuring the success of these programs is difficult. I don’t think the last ten years have provided enough evidence to prove any one program has caused a significant improvement in healthcare costs. According to an NIH article, only two studies with weak designs have been found that showed cost savings and a positive return on investment (Damberg et al., 2014). The article also talks about six direct studies to measure CMS payments. It found that, the studies were concluded in a short period and a lack of comparison group, and could not come to a conclusion at the end of the research.
CMS’ Value-Based Programs. (2022, March 31). CMS. Retrieved August 20, 2022, from https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/Value-Based-Programs/Value-Based-Programs
Damberg, C. L., Sorbero, M. E., Lovejoy, S. L., Raaen, L., & Mandel, D. (2014, December 30). Measuring Success in Health Care Value-Based Purchasing Programs: Findings from an Environmental Scan, Literature Review, and Expe