Health care systems and applications

Hardware / Software

Install.

$4,586,700

$500,000

Maintenance

2,600,000

Training

1,387,567

Total

$8,574,267

$4,567,318

$4,197,691

$17,339,277

IT USA

Hardware / Software

Install.

$3,786,500

$500,000

Maintenance

Training

Total

$8,161,187

$4,962,181

$4,580,940

$17,704,308

To ensure effective implementation, I would have pilot sessions with a select group of employees. These pilot sessions are designed to provide solutions to problems within the implementation process. If the small group utilizing the software encounters problems, they can be addressed prior to the full scale implementation. I would then fix the problems and role pilot the software to a still larger group of select individuals. I would do this until I was relatively sure that many of the more major problems are eliminated. If codes still remain in the system, I would simply identify the cause of the issue and take actions to mitigate it appropriately. Hopefully, through the pilot program mentioned above, these issues can be eliminated prior to actual full scale implementation.

In regards to cost cuts, I would reduce the number of staff working within the clinic. I would do so based primarily are two trends currently underway within the health care industry. The first is the widespread use of technology and its immediate efficiencies as it relates to healthcare. The second is the consolidation in the health care industry and the tendency to realize economies of scale from larger operations.

To begin, the largest component of an organizations costs are most often related to labor. Due to this fact, many companies are very quick to cut cost when faced with dramatic economic headwinds. The recession of 2008, had a direct impact on health care, for example, as massive layoffs took place within the industry. As such, to cut cost immediately within the clinic, layoffs, although unpopular, would be the best course of action.

For one, layoffs, if done correctly will not sacrifice the quality of care. By implementing the alternative option, of reducing patient population, the firm will lose valuable business to competition. This ultimately could result in further layoffs in the future, as revenues will decline as customers go to alternative clinics. To prevent these further layoffs in the future, it is advisable to lay off workers today. By laying off works today as oppose to postponing layoffs (which would occur if the alternative option is undertaken) the firm can free up capital that can be utilized in better serving its patient population.

Technology can also mitigate the influence of reduced staff in the clinic. Routine transactions that can be conducted through technology will allow a reduction in staff without a corresponding reduction in quality. Aspects such as medical records, service tracking, bill pay, and other functions can become automated. In some respects, this service automation could enhance the patient experience, while having a reduced staff. As many of the patients are low income, automatic bill pay can help facilitate timely payments.

Finally, legislation such as the Affordable Care Act has increased the insured population by nearly 30 million individuals. As such, the area in which the clinic is located will undoubtedly be subject to this impending legislation. As more individuals are required to become insured, more individuals will be serviced by the clinic. As operations become larger through the use of technology, the per- unit cost of servicing the customer declines. This phenomenon is called economies of scale. As more and more patients are seen at the clinic, the fixed costs of the clinic, (Machines, computers, security systems, rentetc.) are spread out between the patients. Below is a simplified chart demonstrated the concept mentioned above