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Nabil Hamam March 6, 2015Dr. John W. FickSiena Heights University Experiential Exercise: Human Resources BudgetingLDR625- Human Resources in Healthcare AdministrationCase 1:1- Mr. Richard is the department manager for speech pathology services at ABC Hospital. The average productivity per visit at the department is 0.75 hours per procedure. Based on one FTE equaling 2,080 hours and 48,000 predicted patient procedures; 48000 p x 0.75 h =360003600 / 2080= 17.31So, “17.31” FTEs will be needed to adequately staff the department.2. If the department productivity changes from 0.75 to 0.70 hours per procedure;48000 p x 0.70 h =3360033600 / 2080 = 16.1 FTE’s“ 16.15” FTEs will be needed to staff the department.3. Some of the reasons average productivity hours change is: patient volume, wage increases, staffing specialty, cancelled appointments, staff efficiency, work environment, Inefficiencies in cost, time management, and hours paid but not worked. Any cost savings demonstrates that productivity plays a major role in the profits of the organization (Fried & Fottler, 2008, p. 441). Improving productivity in health care is, unquestionably, among the most important challenges facing policy makers and health care systems. Advances in medicine have greatly improved lives over the last century and ideally will continue to do so in the future. However, medical care also consumes a rapidly increasing proportion of society’s time and resources. That trend has continued to the point that growth in health care spending is considered a drag on the remainder of the economy.2 By improving productivity, we can continue improving our health while not sacrificing too much of our material well-being in the process. Current measurements of health care productivity are standing in the way of that improvement by presenting a false image of how the health care system creates value. Existing measurements tend to reflect the needs and incentives of health care providers in a fee-for-service world – not the interests of a broad population of patients, most of whom would prefer to stay out of the doctor’s office and away from the hospital as much as possible. Improving measurements of productivity will be a challenge, but it’s an important step toward a better health care system (Colucci J, Brownlee S, 2012).Case 2: Based on the facts provided in this case; we need to decrease costs and improve benefits. Using an outsourcing company is the key of success in the case of XYZ Hospital. According to Fried & Fottler (2008), outsourcing is the use of services offered and performed by companies outside of the organization. Some of the reasons to use them include:-Accessing expertise or capability: XYZ hospital would benefit from the expertise of the company and their business processes.-Controlling cost: cost saving could be realized through benefits provided to employees.-Gaining a competitive advantage through specialization and economics of scale – XYZ Hospital would be able to offer their employees better health insurance and pension benefits (Fried & Fottler 2008). Hazelwood et al.’s (2005) believe that there are some questions need to be addresses to outsourcings companies such as:- Who will be performing the work? What pay?- How will the information be securely transported to and from the healthcare facility?- What policies, procedures, and training programs are in place at all of the contractor's sites, and are they compliant with industry standards for privacy and security?-How and where will the work be done, and will any portion of the work be subcontracted?-What laws govern the protection of personal health information in the countries where services are being performed?-How will the service ensure and measure quality? Hazelwood et al.’s (2005).In conclusion, Top reasons cited by companies that have successfully outsourced their operations are:-Control operating costs: This translates into major cost savings for companies. They also save on operational costs such as payroll, administrative costs, HR, power, rentals, and utilities.-Lower infrastructure investments: Cut back drastically on expensive infrastructure.-Focus on core functions: Focus on the core competencies. Redirect organization's internal resources toward mission-critical activities. By outsourcing functions such as transcription, medical billing, and claims processing, healthcare practices can get their focus back on their primary concern - their patients.-Accelerate migration to new technology: Migrate to new technologies with minimum downtime and increased productivity and quality by outsourcing IT processes. -One-time applications: Avoid expensive short term outlays. Outsource one-time applications which have to be ramped up in relatively short time and require high manpower resources.-Overcome seasonal workflows: Overcome seasonal fluctuations in work and lack of workers during holidays and off-seasons. Deal with peak workloads and smaller staff during vacations by outsourcing these functions.-Overcome talent shortages: Overcome acute talent shortages and an increased demand for skills in countries like the U.S. Outsource to offshore locations such as India which have a large pool of qualified, English-speaking professionals.Bucki, J (2013) believes that outsourcing can help organizations develop internal staff; a large project needs to be undertaken that requires skills that some staff does not possess. On-site outsourcing of the project will bring people with the skills XYZ hospital need into the system. The teams can work alongside of each other’s to acquire the new skill set.ReferencesAdvantages of outsourcing services (2013). Retrieved March 6, 2015 From , J (2013). Top 7 Outsourcing Advantages. Retrieved March 5, 2015 From J, Brownlee S (2012). The Cost of Assuming Doctors Know Best. . Retrieved March 5, 2015 From health/archive/2012/09/the-cost-of-assuming-doctors-know-best.Fried, B., & Fottler, M., (2008). Human Resources in Healthcare. Chicago, IL: Health Administration Press.Hazelwood, S., Hazelwood, A., & Cook, E. (2005). Possibilities and pitfalls of Outsourcing. Hfm (Healthcare Financial Management), 59(10), 44-48. ................
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