7-2 Final Project Submission Written Proposal
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Southern New Hampshire University *
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400
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Medicine
Date
Dec 6, 2023
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docx
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11
Uploaded by trevi0825
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Introduction: Major Forces
The healthcare sector has more opportunities and problems as society develops. Today's
healthcare delivery is being impacted by a variety of factors every day. Health care organizations
today face several significant challenges, including the worldwide Covid-19 pandemic shift to
telemedicine, secondly the high cost of medical care, and lastly physicians’ shortage. Keeping up
with these changes is crucial for healthcare leaders to provide the best service to their
organization and communities. It is more important than ever to remain knowledgeable about the
changes being made or to be anticipated in the future. If healthcare organizations fail to follow
through with these changes, they will suffer immensely, with the greatest financial burden being
the result.
Introduction: Impact of Forces
The outbreak of COVID-19 has caused many people to reevaluate what they consider
safe in terms of their health. In one study, 41% of respondents avoided any in-person medical
care in the first few months following the outbreak, and activities that were once a part of
everyday life, such as doctor's appointments, now seem potentially risky. As new variants of
Covid-19 continue to emerge, people are understandably still having difficulty feeling
comfortable waiting for their appointment in a public setting such as a doctor's office. In October
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2000, telehealth claims were up more than 3,000% from pre-pandemic October 2019 because of
the pandemic, indicating the use of telehealth remains strong. From October 2000 to July 2021,
the use of telehealth options had increased by 38 times(Schweitzer, 2022).As a result of the
pandemic, medical practices temporarily or permanently closed. Those who were hesitant to visit
a physician were afraid of exposure to the Coronavirus. A lack of open beds, limited resources or
a shortage of workers led to individuals being turned away from hospital care. Digital encounters
with physicians are preferred by 33% of millennials and 41% of Generation Z over in-person
encounters. Virtual health services are still growing, with roughly half of employees using them
by 2020 — up from 17% in 2019 (Schweitzer, 2022). 22 states and Medicare include telehealth
coverage in their Covid-19 coverage expansions. These new policies established payment parity
between brick-and-mortar and virtual care as the preferred treatment mode shifted.
Secondly,
the high cost of medical care. In the United States, healthcare costs have
become so high that most individuals are unable to afford healthcare. In addition, every election
season, new proposals are always put forth, but they never really act. Particularly after seeing the
extent of the damage caused by the pandemic, we should call for healthcare reform, as well as
universal health for our citizens. The high cost of medical care is a problem for many Americans.
While lower-income individuals and uninsured individuals are most likely to report this issue,
higher-income individuals and those with health insurance are not immune. Most Americans say
it is difficult for them to afford health care costs (47%). Uninsured adults under 65 are far more
likely (85%) to say that health care costs are difficult (47%) than those with health insurance
coverage. Additionally, six out of ten Black adults (60%) and Hispanic adults (65%) report
difficulty affording health care costs compared to three out of four White adults (39%) (Alex
Montero, 2022). As healthcare costs rise, we are seeing calls for moving away from the current
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free market system toward a government-run universal healthcare system. This has brought about
new regulations and value-based purchasing programs.
Lastly, physicians’ shortage. In 2020, the Association of American Medical Colleges
estimated that the U.S. would experience a shortage of 54,100 to 139,000 physicians by the year
2033 (Howley, 2022). There will be a physician shortage in both primary and specialty health
care fields, and the situation is expected to deteriorate (Howley, 2022). This can lead to poorer
health outcomes for many patients if the situation continues. There is a large concern regarding
primary care, according to a Kaiser Family Foundation report released in September 2021. There
are approximately 8,37 million Americans living in primary-care health professional shortage
areas (HPSAs) and the HPSA designation needs to be removed by more than 14,800
practitioners. This increases costs and is particularly prevalent in underserved areas, where
“many patients do not see a physician until their medical condition becomes critical, and they
require emergency room treatment. Leaders can help to alleviate physician shortages by
providing incentives to medical students who want to engage in primary care.
A federal funding
program that would lessen the total burden of medical school costs is frequently lauded as a
critical component of the solution to the physician crisis.
Healthcare Organization Selection
Partners Health Care systems (MGH), or Mass General Brigham, is committed to
serving the community. The organization has a mission to improve patient care, conduct
research, and serve as an integrated health care system in which it takes a leadership role. We
recognize that maintaining excellence requires increasing value and continuously improving
quality (Mass General Brigham | Integrated Health Care System, n.d.). As of 2021, there are five
licensed and 15 affiliated community health centers in our community. They invested $225
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million in community benefits, including investments in licensed health center programs in
response to health needs identified in the community health needs assessments. The system is
committed to the Health Safety Net program and has developed a variety of community
partnerships to provide support to our residents. Mass General Brigham is available throughout
New England with over 80,000 providers providing safe, high-quality care in hospitals,
laboratories, doctors' offices, outpatient centers, rehab facilities, urgent care clinics, and homes.
They also invest billions of dollars in research (Mass General Brigham | Integrated Health Care
System, n.d.)
Opportunities
Each day we encounter new challenges and opportunities in the healthcare industry. The
healthcare industry is constantly changing and making new discoveries. Access to healthcare,
regulatory changes, and the cost of healthcare have all contributed to the continuous changes in
how care has been delivered to patients over the years. Advances in technology and medical
research have enabled healthcare providers to offer better and more efficient care to patients.
Additionally, the Affordable Care Act has given more people access to healthcare, while also
putting in place regulations to ensure that care is provided in a safe and effective manner. This
has also resulted in changes in the cost of healthcare, which has caused the industry to further
evolve.
The Brigham and Women's Hospital and Massachusetts General Hospital together
founded our health system in 1994, bringing together two of the nation's leading academic
medical centers. Our shared mission is to provide the highest quality care to patients and their
families in a caring, efficient, and innovative environment. We strive to provide the best possible
care to patients, their families, and our community. We are dedicated to improving the health and
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lives of all we serve. Partners HealthCare changed its name to Mass General Brigham in 2019,
reflecting their commitment to excellence, a sense of pride, and an alignment with their patients.
Mass General Brigham is a leading hospital that offers the best care to patients with
cancer, cardiovascular disease, orthopedics, and many other diseases. People may find it most
difficult to obtain service from the country's leading hospital due to the high costs and the
difficulty of scheduling appointments. In addition, they do not accept many health insurance
plans, which means they need to offer more appointments to patients who want the opportunity
to see the best. As a result of providing great care, the cost will drop, as well as the volume will
reduce, allowing patients to receive better care to better their health.
Proposal
To implement meaningful and successful care for patients, Mass General needs to offer
more appointments or have a cancellation list so they can keep in touch with patients when an
appointment becomes available for them. Health insurance is another major issue for patients
when it comes to receiving care at MGB. MGB accepts all the major insurance companies,
including BCBS, Tufts, Harvard. A better proposal would be for MGB to accept all types of
insurance, including state insurance, since many people cannot afford the care at MGB due to
insurance issues and the cost of a single stay at MGB is very high. How can the best not be able
to aid those people who need it most? There are hospitals around the area, like Boston Medical
Center, that accept all kinds of insurance and even people without health insurance can get high-
quality care at MGB if the hospital accepts state insurance . If patients can get the highest quality
care at this leading hospital, they are able to get the proper health care that they need. After being
diagnosed with some of the most horrendous diseases, a patient's hope that they will receive the
proper health care and not worry about insurance can bring them peace and comfort.
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As a result of government reimbursements that do not fully cover the cost of providing
care to Medicare, Medicaid, and Health Safety Net patients in 2022, the system absorbed $2.3
billion in Medicare, Medicaid, and Health Safety Net shortfalls, an increase of $307 million
(15%) over 2021. A zero premium Medicare Advantage plan has been launched, enabling us to
move about 140,000 Medicaid members into a full risk program and demonstrate our
commitment to improving patient affordability as we move into 2023 MGB Simultaneously, we
are taking the next steps towards transitioning our care model to one based on value rather than
volume.
Financial Statements
The purpose of financial statement analysis is to provide information that helps decision
makers to make better decisions. For the future of the company, leaders must use this process to
ensure growth and longevity. To determine where the profits of the company are going, it will be
vital for the company to analyze balance sheets and income statements. An income statement is a
statement of revenue and expenses for a given period. A cashflow statement is a statement of
where the money is coming and going for the company. Financial statements can be classified
into four types: income statement, cashflow statement, balance sheet, and shareholders’ equity. In
a balance sheet, the company's liabilities and assets are shown, while in a shareholders' equity
statement, the shareholder's interest is shown. Budgeting is also important when it comes to
companies because it will help them manage their revenue more effectively. Finance is important
for monitoring company performance and making predictions for the future. As part of my
proposal, I will use income statements and cash flow statements to gain a better understanding of
Mass General Brigham's finances.
Proposal Impact
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I propose that Mass General Brigham has more appointment options available to patients
instead of the long wait and that MGB accepts all types of insurance, including state insurance,
because many people cannot afford the care at MGB due to insurance issues and since MGB's
single stay at MGB is incredibly expensive. Patients would receive the best care if there were
more appointments available and all insurance accepted. This will generate more revenue, which
will allow Mass General Bristol to conduct more research and to promote valuable health to
everyone. The people who need the best care can receive it as well. This will help reduce health
disparities and promote better health outcomes for all. It will also ensure that more people have
access to quality healthcare and that their needs are met. The improved care will also benefit the
community.
Flexed vs. Fixed
When preparing the revenue, a flexible budget prepares the revenue from a uniform
budget, while the fixed budget is uniform and doesn't change. Basically, the biggest difference
between these two budgets is that one doesn't change, whereas the other can change. In my
proposal, I would use a flexible budget because there will be a lot of updates that will happen
over the next few years. As a result of this budget, we will be able to determine the amount that
we are budgeting for and divide the changes into two distinct categories to stay within the
budget. If there are any hiccups down the line, it's important to have a flexible budget. This way,
we can prioritize our spending and ensure that we are utilizing resources in the most efficient
way. Furthermore, we can be prepared for unexpected expenses by having a flexible budget.
Ratio Selection
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A liquidity ratio is an important tool for a company to ensure that it will be able to repay
short-term debt obligations when it enters new projects and when comparing it to its investors.
Using liquidity analysis, an organization can determine if it can meet its financial obligations
when they arise. In addition to measuring a company’s ability to pay off its short-term debts,
liquidity ratios are used to determine this. Liquidity ratios are important tools for assessing an
organization's ability to make future payments or determine whether it has taken on too much
debt (Pink and Song, 2019).
Ratio Results
Providers lost $395 million (-2.5% operating margin) in March due to the Omicron surge,
unprecedented inflationary pressures, and staffing shortages that reduced inpatient and outpatient
beds. A total of $931 million was generated in premium revenue (up 2%), $2.5 billion was
generated in research revenue (up 10%), and $1.4 billion was generated in other revenues (23%
increase, excluding the $232 million CARES Act funds received in 2021). Over 2021, operating
expenses grew by $1.6 billion (10%), and they remain high due to increases in wages (9%,
reflecting increased use and cost of temporary staffing, and market wage adjustments to enable
workforce retention), employee benefits (13%), and clinical supplies (13%).
Operating margin= operating income/net revenue
= 395,000,000/ 931,000,000
.424274973 ×100= 42 percent increase in revenue
Short- and Long-Term Impact
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In the short term we will need to increase operating expenses to continue to hire more
healthcare professionals so the hospital can have more open and available appointments, which
in the long run can lead to more appointments available and patients not having to wait months
for appointments. A higher level of staff and more appointments will not only cut wait times for
patients, but they will also ensure that more patients receive the treatment they need within a
short time frame. As a result of this investment, patients will receive better care and be more
satisfied with their experience.
Added Value
The plan being given will offer tremendous value to the organization, especially in light
of current healthcare trends. The healthcare business is rapidly changing, with an emphasis on
improving patient outcomes and lowering costs. The proposal tries to address these issues while
also improving the organization's efficiency and effectiveness.
The proposal being offered will
significantly benefit the company by enhancing patient outcomes and cutting expenses. The
organization will become more effective and efficient because of the suggested system, which
will enable it to keep up with emerging healthcare trends.
Justification of Proposal:
According to the financial analysis, my proposal would provide healthcare to individuals
who are in need and would make hospital scheduling more flexible so that patients can receive
the appropriate care. By partnering with the state and private insurance companies, the provider
can focus on providing the best care to the right individual, while the hospital generates the
necessary revenue.
By generating adequate revenue, the hospital's finances would become stable,
allowing for the provision of a wider range of department coverage, which in turn would help the
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hospital provide excellent care to the community who needs excellent care from the very best
provider.
References
About Us. Fiscal Year 2022 Financial Results | Mass General Brigham. (n.d.).
https://www.massgeneralbrigham.org/en/about/newsroom/press-releases/2022-financial-results
Home. Mass General Brigham. (n.d.).
https://www.massgeneralbrigham.org/en/about/our-
story
EDGAR Search Results. (n.d.). Www.sec.gov. Retrieved June 18, 2023, from
https://www.sec.gov/cgi-bin/browse-edgar?
action=getcompany&CIK=0001678378&owner=include&count=40
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Mass General Brigham | Integrated Health Care System. (n.d.).
Www.massgeneralbrigham.org. Retrieved June 18, 2023, from
https://www.massgeneralbrigham.org/en?
utm_source=google&utm_medium=cpc&utm_campaign=MGB%20-%20Brand%20-
%20National&utm_content=MGB%20Brand%20(Broad)&utm_term=mass%20general
%20brigham&gclid=CjwKCAjw36GjBhAkEiwAKwIWyRttky5hbkJiO6XkoGTH6dLn5vtS6rif
wTnI8S_O93b2fcN8iSSx8xoC2UYQAvD_BwE
Pink, G. H., & Song, P. H. (2019). Gapenski's Understanding Healthcare Financial
Management (8th ed.). Health Administration Press.
https://mbsdirect.vitalsource.com/books/9781640551107