Reducing Hospital Length of Stay

Healthcare Management

The purpose of this paper is to discuss the project design, methods, and budget related to the DNP practicum practice change project in the healthcare management field. The practice change aims to reduce readmission rates, reduce hospital length of stay, and improve patient satisfaction. Specifically, the paper will focus on the organization philosophy, vision statement, mission, business model, and stakeholders involved in the project. The paper will also define various terms related to the budget and revenue, expenses budget, and direct and indirect costs associated with the issue being tackled in the project. Finally, the paper will discuss the method of strategies that will be employed to promote the clinical practice change to key stakeholders in the finance department.

Section One: Project Design Foundation

The organization of choice for the DNP practicum practice change project is ABC Healthcare. The organization philosophy is to provide high-quality healthcare services to patients while keeping their satisfaction and well-being as the top priority. The vision statement is to be the leading healthcare provider in the region, while the mission of the organization is to improve the health and well-being of the communities they serve.

The strategic planning in the organization is managed by the executive team, which includes the CEO, CFO, and CMO. The business model of the organization is a fee-for-service model, where patients pay for the healthcare services they receive.

The key stakeholders who will be involved in discussing the needs to implement the practicum project, specifically the expenses and budget related to the project, are the finance department, the operations team, and the clinical staff.

The DNP practicum project aligns with the organization philosophy, vision statement, and mission of the clinical organization by focusing on improving the health and well-being of patients through a clinical practice change that enhances patient outcomes, satisfaction, and quality of care via the reduction of readmission rates and hospital length of stay. Readmission rates and hospital length of stay are factors that can determine or affect patient satisfaction, and practice change can be a way to improve satisfaction by reducing readmission and length of stay (Chen et al., 2020).

Section Two: Budget and Revenue

Definition Terms

Incremental budget: An incremental budget is a budgeting approach where the current year's budget is based on the previous year's budget, with adjustments made for any changes in the upcoming year (Beredugo et al., 2019).

Zero-based budget: A zero-based budget is a budgeting approach where all expenses must be justified for each new budget cycle, regardless of whether they were included in the previous budget (Al-Attara et al., 2020).

Fixed or variable budget: A fixed budget is a budgeting approach where expenses are predetermined and do not change, while a variable budget is a budgeting approach where expenses can change based on the volume or level of activity (Chi & Hu, 2021).

Operating budget: An operating budget is a budget that outlines the expected expenses and revenues for the day-to-day operations of the organization (Anderson et al., 2020).

Revenue budget including capitation, negotiated rates, reimbursement of a predetermined amount: A revenue budget is a budget that outlines the expected revenues for the organization, including capitation payments, negotiated rates with insurance companies, and reimbursement for a predetermined amount of services (Adhikara et al., 2022).

Revenue projections: Revenue projections are estimates of the amount of revenue an organization expects to generate over a given period of time.

Fixed costs with an example: Fixed costs are expenses that do not change regardless of the level of activity, such as rent, salaries, or insurance (Kauffman, 2020).

In the context of this DNP practicum project, budget refers to the estimated cost of resources required to implement the practice change. Revenue, on the other hand, refers to the income generated by the healthcare organization, which can be used to fund the project.

Expenses Budget

The expenses budget for the DNP practicum project will include direct and indirect costs. Direct costs are expenses that are directly related to the implementation of the project, such as the cost of hiring additional staff, purchasing new equipment, and conducting training sessions. Indirect costs, on the other hand, are expenses that are not directly related to the project but are necessary for its implementation, such as administrative overhead costs and facility maintenance expenses.

To estimate the expenses budget for the project, the finance department will collaborate with the project team to identify all the direct and indirect costs associated with the project. The project team will then prioritize these costs based on their importance and feasibility, and the finance department will allocate funds accordingly.

Revenue

To fund the DNP practicum project, ABC Healthcare can use its revenue generated through its fee-for-service model. The revenue generated can be used to cover the expenses budget for the project. Additionally, the project team can explore external funding sources, such as grants, to supplement the organization's revenue.

The potential direct and indirect savings or income that can be anticipated as a result of a successful clinical practice change will depend on the specific change being implemented. However, some possible direct savings could include reduced healthcare costs, decreased hospital length of stay, and lower readmission rates. Indirect savings could include improved patient satisfaction, enhanced reputation for quality care, and increased patient volume due to positive word-of-mouth recommendations.

The possible expenses related to implementing the clinical practice change will also depend on the specific change being implemented. However, some possible expenses could include costs associated with training staff, purchasing new equipment or technology, and hiring additional personnel. Other expenses could include costs related to data collection and analysis, marketing and promotional expenses, and consulting fees.

Section Three: Method of Strategies

To promote the clinical practice change to key stakeholders in the finance department, I would use a concise and evidence-based approach to explain the issue being tackled and its relevance to the organization's financial goals. This approach would involve presenting data and evidence that clearly illustrate the problem with the current practice and the potential benefits of the proposed change. For example, as one aim of the clinical practice change is to reduce readmission rates, I would present data on how readmissions are costing the organization money and how reducing readmissions could lead to significant savings.

Additionally, I would emphasize the potential financial impact of the issue for the organization, highlighting the costs associated with the current practice and the potential savings that could be achieved through the proposed change. This approach would involve quantifying the costs associated with the current practice and presenting data that show the potential savings that could be realized through the proposed change. For example, as one aim of the clinical practice change is to reduce hospital length of stay, I would present data on the average length of stay and the associated costs, as well as data on how the proposed change could lead to reduced length of stay and associated cost savings.

Furthermore, I would also demonstrate how the project aligns with the strategic planning foundation of the organization, including the mission, vision, and philosophy. This approach would involve highlighting how the proposed change supports the organization's overall mission and vision, and how it aligns with the organization's core values and beliefs. For example, as another aim of clinical practice change is to improve patient outcomes and satisfaction, I would emphasize how this aligns with the organizational vision, mission, and philosophy, and business model of the organization.

Overall, to promote the clinical practice change to key stakeholders in the finance department, I would use a concise and evidence-based approach to explain the issue being tackled and its relevance to the organization's financial goals. I would emphasize the potential financial impact of the issue for the organization, highlighting the costs associated with the current practice and the potential savings that could be achieved through the proposed change.

I would also demonstrate how the project aligns with the strategic planning foundation of the organization, including the mission, vision, and philosophy. I would emphasize how the project aims to improve the health and well-being of patients, which is in line with the organization's mission. I would highlight how the project supports the organization's vision of being the leading healthcare provider in the region, by promoting quality care and positive patient outcomes.

Conclusion

In conclusion, this paper has discussed the project design, methods, and budget related to the DNP practicum practice change project in the healthcare management field. The project aims to reduce readmission rates, reduce hospital length of stays, and improve patient satisfaction by implementing a clinical practice change. The paper has focused on the organization philosophy, vision statement, mission, business model, and stakeholders involved in the project. It has also defined various terms related to the budget and revenue, expenses budget, and direct and indirect costs associated with the issue being tackled in the project. The paper has also emphasized the importance of aligning the project with the organization's philosophy, vision, and mission, as well as involving key stakeholders in the project.