According to the text, a significant amount of revenue that the health care industry generates can be linked directly to the care that physicians provide for their patients. In addition, physicians in a medical practice add to this revenue stream by admitting patients to a hospital, prescribing prescription medication, ordering home health services and medical equipment, and referring their patients to other health care providers for care and treatment.
This is Part 3 in the development of the operations plan to guide you in managing the practice and leading the staff.
Develop Part 3 of your operations plan. It should be 3-4 pages and include at least two quality academic resources in which you:
Explain what you need to know about accounting and budgeting as a practice leader.
Compare the two levels of financial benchmarking (i.e., internal comparison and external comparison), and explain the strategic purpose and importance of benchmarking as a financial tool for a medical practice.
Explain the role telehealth and telemedicine services have in medical group practices and how they affect patient care safety and quality. Support your response.
Recommend a health information technology (HIT) system that includes an electronic health record (EHR) for the new practice to implement, and include three main benefits of having the HIT system.
Propose a strategy to mitigate the impact of a specific hazardous risk associated with one of the risk categories; property (general liability and safety), technology, or financial practices could have on the practice. Support your proposal with a real-life example.
Title: Operations Plan for Managing a Medical Practice
Introduction:
This operations plan aims to guide practice leaders in effectively managing a medical practice and leading the staff. Part 3 of the plan will focus on accounting and budgeting, financial benchmarking, the role of telehealth and telemedicine services, the recommendation of a health information technology (HIT) system, and proposing a strategy to mitigate a specific hazardous risk.
Accounting and Budgeting for Practice Leaders:
As a practice leader, it is essential to have a basic understanding of accounting and budgeting principles to effectively manage the financial aspects of the practice. Key areas to focus on include:
a) Financial Statements: Familiarize yourself with financial statements such as income statements, balance sheets, and cash flow statements. These statements provide crucial information about the practice's financial health and performance.
b) Budgeting: Develop a comprehensive budget that encompasses revenue projections, expenses, and cash flow. Regularly monitor and analyze budget variances to identify areas for improvement and ensure financial sustainability.
Financial Benchmarking in Medical Practices:
Financial benchmarking involves comparing a practice's financial performance against internal and external benchmarks. The two levels of financial benchmarking are as follows:
a) Internal Comparison: This involves comparing the practice's financial data over time, such as monthly or quarterly performance. Internal benchmarking helps identify trends, measure progress, and set realistic financial goals.
b) External Comparison: External benchmarking involves comparing the practice's financial performance against industry standards or similar practices. This comparison allows practice leaders to assess their competitiveness, identify areas of improvement, and make informed financial decisions.
Benchmarking serves a strategic purpose in a medical practice by:
Identifying areas for improvement in financial performance.
Setting realistic financial goals based on industry standards.
Facilitating informed decision-making regarding budget allocation and resource management.
Role of Telehealth and Telemedicine Services:
Telehealth and telemedicine services play a vital role in medical group practices, significantly impacting patient care safety and quality. Some key points to consider include:
Enhanced Access: Telehealth services enable patients to access healthcare remotely, increasing access to care, especially for individuals in rural or underserved areas.
Improved Care Coordination: Telemedicine facilitates seamless coordination between healthcare providers, enabling efficient exchange of patient information and collaborative decision-making.
Patient Convenience: By offering remote consultations and follow-ups, telehealth services enhance convenience for patients, reducing travel time and associated costs.
Recommendation for Health Information Technology (HIT) System:
For the new practice, implementing an electronic health record (EHR) system is highly recommended due to its numerous benefits, including:
Improved Efficiency: EHR systems automate administrative tasks, streamline documentation processes, and enable secure sharing of patient information across healthcare providers.
Enhanced Patient Safety: EHR systems reduce medication errors, provide real-time access to patient data, and facilitate clinical decision support systems to enhance patient safety.
Better Data Analysis: EHR systems allow for comprehensive data collection, analysis, and reporting, enabling evidence-based decision-making, quality improvement initiatives, and population health management.
Strategy to Mitigate Hazardous Risk:
To mitigate the impact of hazardous risks associated with financial practices, a strategy could involve implementing robust internal controls and regular audits. For example, maintaining separation of duties in financial processes can minimize the risk of fraud or misappropriation of funds. Regular audits can detect any anomalies or deviations from established financial practices.
Real-life Example: A medical practice implements a strict segregation of duties policy where different staff members are responsible for financial transactions such as billing, accounts receivable, and expense management. Regular audits are conducted by an external auditor to ensure compliance with financial policies and identify any potential risks or irregularities.
Conclusion:
Effectively managing a medical practice requires knowledge of accounting and budgeting principles, understanding financial benchmarking, recognizing the role of telehealth services, implementing appropriate health information technology systems, and mitigating hazardous risks. By incorporating these strategies into the operations plan, practice leaders can enhance financial performance, improve patient care quality and safety, and ensure the overall success of the medical practice.