Research a cost control policy


research a cost control policy that is in effect at your organization or one that you research. In doing so, you will detail the impact this policy has on the organization, its unintended consequences, and a possible alternative.

All healthcare organizations must be aware of cost controls, regardless of nonprofit or for-profit status. Managing costs at all levels of the organization affects the bottom line, which has a direct effect on all aspects of the organization. This assessment is designed to help you analyze why organizational policies are put in place. In addition, it will help you understand the role of operations in a healthcare setting, which is to ensure a high quality of care is maintained across all departments.

You are working in an organization that is conducting an audit of a determined number of policies to determine if they are effective in their current state or if improvements and updates are needed (and alternatives need to be created).

Your first step is to find a policy at a healthcare organization related to cost controls. Include the following in your report.

Summarize the details of the policy:  

When was the policy put in place?  
Was it adopted system-wide, in one department, or multiple departments?  
What does the policy address?  
What is the potential impact of not following the policy at the organizational level? Unit level? Individual level?  
Explain how the policy impacts the fiscal aspects of the organization:

How does the policy act as a cost control?
Describe how the policy impacts the quality of patient care:

Does the policy improve efficiency?  
Are the goals to improve care and reduce costs?  
Explore the unintended consequences:  

What secondary impacts does the policy have on the organization? Unit? Staff? Patient?
Does the policy need revision? 
Suggest alternatives to the policy:

In your opinion, is the policy the best way to address the issue? Support your position by explaining why or why not.

 

 

 

 

Sample Answer

 

 

 

 

 

 

 

Operational Audit Report: Standardized Medical Supply Utilization Policy

Summarization of the Policy

Policy Name: Standardized Clinical Inventory and Procurement Policy

Effective Date: January 2023

Scope: Adopted system-wide across all inpatient units, surgical suites, and outpatient clinics within the regional healthcare network.

Scope: Adopted system-wide across all inpatient units, surgical suites, and outpatient clinics within the regional healthcare network.

Policy Overview: This policy addresses cost control by mandating the use of a "Standardized Formulary" for medical-surgical supplies. It restricts clinicians from ordering specialized or "preference-item" supplies (such as specific brands of sutures, catheters, or wound dressings) unless a patient-specific clinical necessity is documented and approved by a department head.

Impact of Non-Compliance:

Organizational Level: Failure to follow the policy results in "maverick spending," which erodes the organization's ability to negotiate bulk-purchase discounts with primary vendors.