Incorporating Diabetes Management Software in Joslin Diabetes Center - Critical Thinking

Proposal Items

Acquiring diabetes management software is in line with the healthcare trends of hospitals moving towards information technology. Healthcare leaders predict that by 2022, 91% of clinicians will utilize computer-generated pathways in delivering optimal care to individuals (Kaufman et al., 2017). As such, by incorporating the use of Diabetes Management Software in Joslin Diabetes Center is vital because big data will have a heightened role in patient care, the incorporation of e-health in hospitals, as well as the inclusion of HIPAA-enabled cloud applications, which when coupled together will enable healthcare improvements.

Strategic Goals

Joslin Diabetes Centre will incorporate the software to capitalize on the use of big data analytics and information technology. In fact, the advent of big data is primarily revolutionizing healthcare delivery in a variety of ways that were not foreseen before, notably in personalized care (Chawla & Davis, 2013). Through the software, Joslin strategizes to reduce medical errors, thereby improve treatment processes. It also aims at reducing the time needed to complete diagnosis and prescription of drugs.

Proposal: Organizational Resources

Joslin Diabetes Centre had net revenues of $20,423,720, and thus, these can be used in purchasing the new diabetes management software. Besides, Joslin also has the critical personnel, including MD, RNs, LPNs, among other staff who will facilitate the incorporation of the software in the center. Also, Joslin from the revenue, Joslin Diabetes Center has funds that can be used for legal and professional fees that can be used to pay for trainers who will train the personnel on how to use the software.

Budget: Statements

This section highlights the financial statements that Joslin Diabetes Centre. The statements will include revenues (inpatient and outpatient revenue) among other revenue streams. Other aspects that will be included include total gross patient services revenue, contractual allowance, as well as expenses (including salaries for MD, RN, LPN).

Budget: Expenses

Expenses that will be included are fringe benefits and travel. Besides, other expenses that will be included include supplies expenditures, including medical supplies, and office supplies. Other expenses include salaries, employee benefits, as well as wages. Supplies are other expenses that need inclusion, as well as amortization, and depreciation.

Budget: Reasoning

The capital required for the installation of the software is $10,000, and the software can cost around $50,000. The training of the hospital personnel can cost a further $20,000. As such, the total cost can be estimated to be $80,000. Direct costs are the costs related to the installation and buying while indirect cost includes the training costs. The software will allow for conducive cash flows such as accelerating cash slows, delaying cash outflows until they are due, investing cash to consequently earn a rate of return, borrowing cash while considering best terms, and maintaining an optimal level of cash that is not deficient or excessive (Cui, 2017).

Budget: Ratios

These include capital gearing rations, which determine whether the healthcare institution can pay creditors and bankers in the long term, which is obtained by dividing loans and the shareholders funds. However, current ratio and the quick ratio can also determine the organizations ability to cover for short-term commitments. The operating profit margin is primarily used in measuring the pricing strategy, as well as the operating efficiency of a company. Other ratios include debt-to-equity ratio, current ratio, quick ratio, return-on-equity, and net profit margins.

Budget: Ratio Calculations

The current ratio is arrived at by dividing current assets by the current liabilities while the quick ratio is obtained by subtracting stocks from current assets and dividing the result by the current liabilities (Saleem & Rehman, 2011). The debt-to-equity ratio is obtained dividing total liabilities by shareholders equity. For quick ratio, is obtained using the formula: (Current Assets Inventories)/ Current Liabilities. For return on equity, is obtained by dividing net income by the shareholder's equity. Lastly, for net profit margin is obtained by dividing Net Profit by Net Sales

Impacts and Justification: Short-Term Impact

These include faster treatment, diagnosis, and prescription of the various medications. It may also trigger conflicts as there are people opposed to change.

Impacts and Justification: Long-Term Impact

The software will allow for effective management of the revenue cycle, and thus, it will be easy to determine the cost-benefit in that Joslin Diabetes Centre will efficiently monitor the costs, benefits, and expenditures for Medicare, Medicaid, and third-party payers in the revenue cycle from zero balance to scheduling on the various accounts, thereby allow it to highlight the profits associated with each cycle subsequently.

Impacts and Justification: Strategic Planning

Joslin Diabetes Centre will plan on using the diabetes management software in capitalizing on the use of big data analytics and information technology. Through the software, Joslin will be able to strategize to reduce medical errors, thereby improve treatment processes. It will also be easy to plan on how to reduce the time needed to complete diagnosis and prescription of drugs.

Impacts and Justification: Conflicts

Joslin Diabetes Center, through the software, will support care management, as well as implement IT systems that will allow for effective decision-making among Joslin personnel. However, Joslin Diabetes Center should hire competent IT personnel able to manage the complicated IT systems. Besides, the software should help provide physicians with analytics and computing capabilities that are necessary for delivering personalized care (Chawla & Davis, 2013. Also, the software can work with wearables to capture patient data via in-home monitoring devices (Kaufman et al., 2017).

Even so, conflicts may arise, and these include people who are not ready for change, however, with appropriate training, it will be possible to ensure that everyone finds it easy to incorporate the software into every day operations.

References

Cui, C. (2017). Cash-on-hand and demand for credit. Empirical Economics, 52(3), 1007-1039.

Chawla, N. V., & Davis, D. A. (2013). Bringing big data to personalized healthcare: a patient-centered framework. Journal of general internal medicine, 28(3), 660-665.

Kaufman, K., Chernew, M.E., Ehadollahi, S., Grant, H.R., Bisognano, M.A., Angood, P.B., Moore, R.S., Diamandis, P.H. (2017). Futurescan 20172022: The building blocks of transformation. Society for Healthcare Strategy & Market Development. Retrieved from http://trustees.aha.org/envtrends/Futurescan%20PPT%20for%20Trustees.pdf

Saleem, Q., & Rehman, R. U. (2011). Impacts of liquidity ratios on profitability. Interdisciplinary Journal of Research in Business, 1(7), 95-98.