AMT2 — AMT2 Task 3- Service Line Development PDF

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Running Head: AMT2 – TASK 4

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AMT2 – Task 4 Nam Institution Date

AMT2 — AMT2 TASK 3: SERVICE LINE DEVELOPMENT

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AMT2 – Task 4 A1. Evaluation of the Demand for the Orthopedic Service Line in the Market Area As Defined In the Case Study As the Trinity community hospital prepares to develop new services lines, it undertook a needs assessment to establish the needs that will be met and the ability of the hospital to meet the needs. The facility obtained relevant information in the needs assessment by using surveys, interviews with physicians and other healthcare professionals, and evaluating state guidelines for what will be needed for the anticipated services lines. More importantly, Trinity hospital also conducted focus group discussions with community groups, as part of the needs assessment endeavor. From the needs assessment, it was established that the demand for orthopedics was high and hence the need to develop a new service line for this line of operation to meet the increased demand. Specifically, the demand for orthopedic services was expected to increase by 46 recent in orthopedic cases. For inpatient joint and spine procedures, the demand is expected to grow by 30%. The outpatient joint and spine procedures are expected to have the largest growth in demand by 350%. Even though the Trinity hospital has a number of orthopedic surgeons that maintain privileges of offering orthopedic services, the number of staff is not adequate to meet the existing demand for these services. It is therefore clear that there are some groups of orthopedic physicians contemplating opening clinics near the Trinity hospital, and other orthopedists are in the process of obtaining privileges to meet the need for the offering inpatient and outpatient orthopedic services. What this implies is that it is the right time for the Trinity hospital to

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establish a new orthopedic center to meet the demand for increased orthopedic services, and also enhance the productivity of the facility. A2. Analysis Of How Current International Healthcare Trends Can Be Incorporated Into The Development Of The New Service Line. Current trends in international healthcare demand that hospitals improve their service delivery and be more efficient. Additionally, there is a decrease in resources used for the provision of healthcare services due to a downward trend in reimbursements for the healthcare industry globally (Hendricks, 2016). However, it is evident that across the globe, healthcare organization are faced with the need to do more with fewer resources and also expected to offer care at a reduced cost. Across the globe, the apparent trend is the emergence of new and innovative technologies in the healthcare industry, which have improved patient experience and patient care. In orthopedic care across the globe, there is an application of new and innovative technologies and Trinity hospital is expected to follow suit and adopt the use of new technologies in its new orthopedic service line (Hendricks, 2016). If Trinity hospital acquires state-of-the art technologies for its new line of orthopedic services, it has a chance of becoming a centre of excellence for these new services. Most international healthcare organizations have modeled their processes and programs to meet the need for increased orthopedic services and Trinity Hospital is also expected to follow suit amid the increase demand for orthopedic services in the region that it operates. One of the ways in which the international healthcare trends can be incorporated in the new service line at Trinity hospital is examining the trends in Europeans countries. The demand for orthopedic services in Europe is exacerbated by the increased cases of osteoporosis. Statistics

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show that in European countries, the increases in patient population that have osteoporosis will be by about 23%, in several years to come (Facts and Statistics, 2017). More specifically, the trend is expected to lead to an increase in the number of patients with osteoporosis from 27.5million patients in 2010 to 33.9-million patients in 2025. The rate of new fractures in Europe and across the international sphere is also expected to rise. In Europe, the increase in the number of people that will have fractures is projected to be from 28-percent; from 3.5-million fractures in 2010 to 4.5-million factures in 2025 (Facts and Statistics, 2017). What the European countries are planning to do can be incorporated in the quest for Trinity hospital to open a new line and meet the increased demand for orthopedic services. Just as what the European countries are expected to do, the Trinity hospital needs to adopt the implementation of minimally invasive surgery for orthopedic procedures. This will include the use of robotic technology, regenerative treatment and use of patient-specific implants for the orthopedic surgical suite (Facts and Statistics, 2017). The upsurge in aging patient population requires that new technology is used to treat these patients so that they remain active in their lives, through an improvement in their mobility needs. Trinity hospital needs to adopt the use of new technologies that allow for patient specific implants to be availed to the aging population and the entire patient population that need implants. It evident that the planning process for the pre-operative processes is long, but it is better than an operation with a standardized implant, since patient recovery is shorter, and the cost associated with pre-operative processes is low. The use of patient-specific implants as trend in the international healthcare organizations, needs to be incorporated in Trinity hospitals new orthopedic service line since patient specific implants require less surgical incisions, a reduction

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in the time it takes to conduct a surgery, decreased blood loss and shorter hospital stays for patients (Maniar, 2014). The emerging trend of using Platelet Rich Plasma (PRP) injections needs to be adopted by the Trinity hospital since this is the trend in the international sphere when it comes to treating injuries such chronic tendon injuries and sprains. The adoption of this treatment method has made it possible for athletes to go back to their sporting life much quickly than before (“Platelet Rich Plasma”, 2018). It is therefore plausible that Trinity hospital incorporates the use of Platelet Rich Plasma (PRP) injections in its orthopedic line of operation. More importantly, Trinity hospital can incorporate the use of patient portals, telehealth, customer apps, and self-check-in kiosks as this has been the trend in internal sphere on orthopedic lines of operations in numerous hospitals. A3. A Discuss of the existing programs and service lines in the healthcare organization that could serve as complementary components of the new service line The Trinity Community Hospital has numerous excising services that will complement the new orthopedic line service, to steer the facility to success overtime. The facility has 20 operating rooms that can be used for orthopedic procedures (Trinity Community Hospital, n.d.). Some of the 150 beds at the hospital can be used to handle the needs of inpatients that have undergone orthopedic procedures at the facility. This is especially for patients that will require inpatient services. Trinity community hospital also has ancillary services that will complement the needs of the new orthopedic service line (Trinity Community Hospital, n.d.). For instance, the facility has laboratories that can be used for blood tests, and be a reserve of blood in the blood bank for transfusion needs of patients. Laboratory staff and equipment will also be a critical resource that will complement the needs of the new orthopedic line of operations.

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Trinity hospital also has other ancillary services that will meet the dietary needs of patients and their families. The facility also has radiology services that will support the pre- and post-operative procedures. For instance the facility has X-ray resources, CT and MRI facilities and equipments, which are critical in offering adequate patient care at the bedside for extensive injuries and for non-ambulatory patients (Trinity Community Hospital, n.d.). The hospital has also been cited as facility that has excellent nurses that are committed to their work and keen on making sure that patient care at the hospital results to improved patient outcomes. An alignment of these ancillary services with the new orthopedic line will contribute to the success and profitability of the Trinity hospital. A4. Analysis of the Financial and Operating Data to Find Out the Financial Feasibility of Instituting the New Service Line

Examining the targets set forth in the strategic plan for growth and profitability at the Trinity hospital, and five year projection estimates by the Chief financial officer (CFO), the financial feasibility of the hospital can be ascertained. The following is a computation of the financial data so that an examination of the financial viability of orthopedic service line is done. From the five-year strategic plan, Trinity expects to have a target outcome of 2,100 surgical cases and 6,500 Physical Therapy visits (Trinity Community Hospital, n.d.). The hospital’s CFO, Mike Corrigan estimates that there will be a $25,000 gross charge per surgical case and $275 gross charge per physical therapy visit. The CFO also projects that there will be a 35% collection rate and a 31-percent ratio cost to charges. The basis of the estimates by Mr. Corrigan is on the improved operating efficiency, payer mix, increased volume,

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and reimbursement trends. The CFO is confident that even though the figures are estimates, they are reasonably accurate. Billable Gross Surgical Cases $52,500,000 Physical Therapy Visits $1,787,500 Collections (35%) Surgical Cases $18,375,000 Physical Therapy Visits $625,625 Ratio of Cost to Charges (31%) Surgical Cases $16,275,000 Physical Therapy Visits $554,125 The table above shows figures linked to the implementation of a new orthopedic service line, and how it can be profitable for the Trinity community hospital. From the table, it is evident that the total the total projected amount of billable gross is projected to be $54,287,500.00. Collections are expected to be $19,000,625. As it relates to the total ratio of cost to charges, it is expected to be $16,829,125 . Taking the estimated raw profit and subtracting the operating costs leaves Trinity with a total profit of $2,171,500. The figure is what is projected in the strategic plan for the hospital. It therefore feasible for the facility to set in place the new service line since there is also a capital reserve of $25,000,000 which can be used to fund the new line of operation. A5. A Discussion Of How To Target And Market To Physicians To Secure Referral Services The Trinity Hospital can contribute to steering its operation to growth and profitability in the orthopedic line through targeting physicians that can send referrals to Trinity’s new orthopedic service line. One of the steps is for the Trinity hospital to find out the current and future needs of orthopedic patients that physicians serve. The hospital administration and leaders in the surgical units need to pay visits to the offices of potential referrals to find out the needs of patients in the orthopedic line of operation. The visits will establish whether the hospital will meet their needs when patients are referred to the Trinity hospital or not. The facility should

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market itself as centre of excellence, with up-to-date technology compared to competitors, so that it convinces physicians to refer their patients to Trinity hospital. The other strategy for marketing to physician is by having them visit the Trinity hospital so that they can see the technology that will be used or is being used in the orthopedic line of operations and how it will fully meet the needs of the patient that will be referred to the facility. More importantly, the Trinity hospital should send every physician a package that showcases the capability of the hospital to offer the safest, highest quality and most innovative care to patients that are referred to the Trinity hospital. Marketing to the physicians should be undertaken periodically, using both short term ad long term marketing strategies. The management of the Trinity hospital should also find out the challenges that physicians are having when taking care of patients. This way the physicians can be convinced that the Trinity hospital is a place where patients can be referred to and physicians be sure that the challenges they face will be fully handled by the facility to improve patient outcomes. For physicians that refer patients, the hospital should send them a message of thanks and assure them that Trinity is in business with them.

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References Facts and Statistics (2017). International osteoporosis foundation. Retrieved from https://www.iofbonehealth.org/facts-statistics#category-22 Maniar, R. and Singhi, T. (2014). Patient specific implants: scope for the future. Current Reviews in Musculoskeletal Medicine, 7(2), 125–130.doi: 10.1007/s12178-014-9214-2 Platelet Rich Plasma (PRP), (2018). Retrieved From https://orthoinfo.aaos.org/en/treatment/platelet-rich-plasma-prp/ Trinity Community Hospital, (n.d.). Five-year Program Plan. Service Line Development – Case Study – General Artifacts. Hendricks, S. (2016). Top 3 Healthcare Trends That Hospitals Should Anticipate In 2017. Retrieved from www.medelita.com/blog/healthcare-trends-2017/...