Ethical and Culturally Sensitive Solutions That Address the Risks Associated with an Initiative

Some non-insured patient and some elderly people who dislike insurance due to cultural and religious reasons, the volume of unpaid medical bills increase over time and this can also raise the costs of the new organization. The issue can significantly increase the hospital re-admission and can also make the PMC Center bankrupt in a few years. In the US, the expansion and widespread implementation of insurance coverage for elderly adults is controlled by the Affordable Care Act of 2010(Mihalopoulos et al., 2020). Using the ERM Risk Management approach, the leaders can monitor and control and analyze risks. Risks can also be evaluated by looking at financial statements and the prediction of the bankruptcy or organizational performance (Resio et al., 2018). The following table shows that risks associated with the initiative. 

This means that the organization should develop administrative cavities to accurately predict the risks and turn them into favorable opportunities. The hospital can remain ahead of the game if it deploys and plans culturally sensitive and ethical solutions to address the risks associated to ensure the future economic security of the organization (Peer at al., 2011). Cost can be high according to Table 1 and the chances of hospital’s services terminated are also high. Through culturally competent and ethical healthcare policies, there is a need in increasingly diverse organizations to reduce racial and ethnic disparities (Mihalopoulos et al., 2020). This means that all the patients must be given equitable access to all the resources and nurses should also increase their cultural competence to improve current initiatives. The promise of cultural competence is that it helps to improve the cultural education or professionals to reduce lower satisfaction and equip all employees with strong English skills. Reducing linguistic barriers and understanding customs, beliefs, and values of professionals of various racial and ethnic backgrounds and social groups can reduce the likelihood of conflicts, as a result, reducing turnover costs. 

Based on the risks provided in the earlier section of the report, the ethical solutions include the ethical practice of telling the patient families and friends and coworkers to avoid too many hospital visits whenever possible. Ensuring hand and equipment hygiene will allow nurses to avoid this issue; skin and oral care will also reduce this risk. Fortunately, the issue of hacked medical equipment can also be avoided using some protection techniques such as tamper-resistant fasteners and potting compounds to disallow the physical access to the devices. 

NURS FPX 6008 Assessment 2 Attempt 2 Developing a Business Case EZ

Recommending self-care and follow-up visits to physicians can help pateints to extend beyond congruent attitudes and behaviors and enable them to work positively in a cross-cultural situation. Therefore, using culturally-competent techniques can reduce ethnic disparities and linguistic barriers through education and training can change the costs of next five years. Moreover, ethical behavioral changes can lead to appropriate services give to minority groups’ employees to achieve better health status. The quality healthcare outcomes will increase revenues, economic benefits, and mutual respect (Lee, 2020). 

Economic Costs and Benefits of a Proposed Initiative over a Five-Year Period

We performed a cost benefits analysis of the new healthcare initiative by taking into perspective the 5-years horizon of the new organization. The primary goal was to find the net financial advantage and cost over five years, whereas, the secondary benefit is to determine whether the total benefits outweigh the total costs in the excel sheet (Jennings, 2011). The implementation of the new healthcare initiative in the PMC shows that there has been a significant positive financial return on the investment made lately by the healthcare organization. 

The excel data shows that the total costs of the new healthcare initiative for the current year as well as for the next five years is expected to be a total of $              515,559.33. Moreover, on the estimated average of 400 new patients paying $200 per week, the total benefits or revenues earned by the organization would amount to $21,939,684.51. These costs also included changes in infrastructure and software purchases and periodic training costs of professionals. The analysis shows that the benefits expand hugely compared to costs. Therefore, the total benefit overweighs costs by the amount of $         21,424,125.18. This means that over the five years period, a significant benefit over these investments will be obtained. This evaluation criterion has also been advocated by researchers like Gilbert (2019) for lowering the costs of PMC and to support the financial and economic aspects of the initiatives. The study states that the purposeful intention of decision-makers for reducing costs of the healthcare system will help to make better connections between stakeholders and will solve complex language and economic issues. 

Moreover, the salaries costs of nurses and managers also show that the starting salaries of nurses were $28.11 an hour or around $5000 per month. Moreover, the salaries of hospital managers and leading individuals are around $49563 per year. The construction and setting up of the new hospital would cost around $400,000. The hospital would also buy some new furniture like tables, chairs, and cupboards and other furniture items. The revenues are broken down in the following way: (Medicaid 12.8 and Medicare 21.8%+Care earning 66.5%). This includes in-patient revenue with the number of beds occupied. This also includes the patient registration and verification; any claim submissions and reimbursements.  

NURS FPX 6008 Assessment 2 Attempt 2 Developing a Business Case EZ

The risks and opportunities involved were observed in the cost benefit analysis. In the five-year plan, the estimated capital cost includes minor construction costs and the cost of purchasing furniture. In the current year, it has been $400,000. The utilities such as electricity, gas, and the Wife cost are also included in addition to other operating costs. The observations are based on the national average recruitment incentives, as the salaries of full-tie employed physicians are estimated to be 800,000 for the first year. However, each employee gets an annual increment that also raises their salaries and the overall salaries expense of the organization each year. Each year, new staff is hired and their salaries also raise the overall expense. The analysis shows that the present value of the total costs over the 5-year period is estimated at $ $515,559.33. Moreover, the benefits part is based on the increase in the revenues due to rising customers each year. Almost 400 patients per week are entertained by the healthcare system per week. Therefore, $250,000 is the estimated value of the increase in company’s revenue for the first year and so on as given in the appendix. Therefore, the analysis of the overall positive net benefit shows that the new healthcare initiative is economically viable and fruitful and will earn more revenues in the successive years. In addition, some knowledge gaps exist such as marketing and non-financial costs and a positive patient experience that is not discussed in the analysis.

Ethical and Culturally Equitable Ways of Keeping Costs under Control

Since the healthcare system is in a dire need of change and improvement, the transformation can only happen through applying and following ethically and culturally equitable strategies to keep costs under control. The language interpretation can be a stepping stone and a starting strategy which can include gap analysis of cultural issues like race, language, and ethnicity and using tools to embed language interpretations. This also involves providing compliance-related and regulatory trainings and hire subject matter experts to improve health equity (Betancourt, 2014). This can cut costs of the organization by 50% or more and can save the organization millions per year. Improving language access through “Martti” system can remarkably improve relationships of nurses with patients and can provide robust language access to reach to more deaf and weak-in-English people. Investing in technological solutions can help to improve health equity through ethical transformation and cultural competence. 

References

Betancourt, J. R., Corbett, J., &Boundary, M. R. (2014). Addressing disparities and achieving equity: cultural competence, ethics, and health-care transformation. Chest, 145(1), 143-148.

Gilbert, G. L., &Ker ridge, I. (2019). The politics and ethics of hospital infection prevention and control: a qualitative case study of senior clinicians’ perceptions of professional and cultural factors that influence doctors’ attitudes and practices in a large Australian hospital. BMC health services research, 19(1), 1-10.

Jennings, B., & Morrissey, M. B. (2011). Health care costs in end-of-life and palliative care: the quest for ethical reform. Journal of Social Work in End-of-Life & Palliative Care, 7(4), 300-317.

Lee, D. (2020). Impact of organizational culture and capabilities on employee commitment to ethical behavior in the healthcare sector. Service Business, 14(1), 47-72.

Mihalopoulos, C., Le, L. K. D., Chatterton, M. L., Buchholz, J., Holt-Lusted, J., Lim, M. H., & Engel, L. (2020). The economic costs of loneliness: a review of cost-of-illness and economic evaluation studies. Social Psychiatry and Psychiatric Epidemiology, 55(7), 823-836.

Piper, L. E. (2011). The ethical leadership challenge: Creating a culture of patient-and family-centered care in the hospital setting. The Health Care Manager, 30(2), 125-132.

NURS FPX 6008 Assessment 2 Attempt 2 Developing a Business Case EZ

Resio, B. J., Chiu, A. S., Hoag, J. R., Brown, L. B., White, M., Omar, A., … & Boffa, D. J. (2018). Motivators, barriers, and facilitators to traveling to the safest hospitals in the United States for complex cancer surgery. JAMA network open, 1(7), e184595-e184595.

Appendix