BUSN652 Operational Quality In Healthcare

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BUSN652 Operational Quality In Healthcare

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BUSN652 Operational Quality In Healthcare

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Course Code: BUSN652
University: American Public University System

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Country: United States

You have recently been hired as the chief financial officer (CFO) of a large hospital. Your hospital has experienced major growth and is proposing a new department of quality improvement. This new department has to be approved by the board of directors. The chief executive officer (CEO) has asked you to prepare a presentation for the board of directors to stress the importance of quality from a financial standpoint. Prepare a 8-12 slide PowerPoint presentation describing the importance of delivering quality care on the finances of the organization. Make sure to include the following: An overview of the concept of quality in health care. A description of the current finances of the organization and how quality would enhance the bottom line. The consequences of not implementing the new department within the organization, including legal and marketing implications. As you are crafting your presentation, consider your audience: a group of board members that you need to persuade to approve the financials for a new department.
You need to make a strong, clear argument to support the need for a quality improvement department. You will also need to be creative to keep your audience’s attention. Include speaking notes with each slide outlining the presentation.

Overview of Health Care Quality

The level of value given by health care resources is measured by different parameters, which is called the Health Care Quality

Institute of Medicine (IOM) define it as “the degree to which health care services for individuals and populations increase the likelihood of desired health outcomes”

The main purpose of health care is to give better quality of medical facilities to the needed, and to make sure to provide better quality of life by curing diseases and increasing life span.

Health Care Domains

The IOM has further given SIX (6)domains or properties for defining quality :

Effectiveness: It is mainly related with achieving scientificoutcomes for care procedures

Efficiency: It is related to increasing the quality of healthbenefits achieved by the use of resources

Equity: It is related to providing equal health care benefits to all

Patient centeredness: It means meeting patients’ all needs

Safety: Maintenance of all precautions to protect form anydisease

Timeliness: Reduction of any delays

This type of frameworks same of the IOM domains helps patients to understand the level of quality a health organization provides.

Grouping these measures into user friendly pattern helps patients further to understand the quality level

The health care quality measures the 6 domains differently, effectiveness and safety are examined by most of the measures, timeliness and patient-centeredness by a fewer , and efficiency and equity of care by even fewer measurements.

Present Financial Scenario

In the past few years this organisation has experienced major growth in the health care sector.

This growth is due to the rise in demand for better health care by the public, as the importance of better life and its implications are being observed by them.

Thus patients are preferring this organisation for its better health care quality measures

Eventually giving rise to the increase in the net profit

The balance sheet of this organisation shows there is also an increase in the assets

The cash flow statement tells that the investing activities, the financial activities and the operating activities has shown better results than previous years.

This further shows the increase in cash in hand

Liquidity of the organization shows improvement

Finally the overall analysis of the financial documents shows overall profit and continuous growth of the organisation

Results of Better Quality

Better quality in a health organisation implies better service quality,

Which is achieved by better treatment of patients and fulfilling all their needs providing patients satisfaction

Better quality also means less risks and more lives saved providing a trust factor in patients minds

This trust creates loyal patients and attracts other patients too

This helps in creating competitive advantage in the health industry

Finally increasing market share and customer base and as well as brings profit in the organization

Importance of New Department

Due to increase in the number of patients there is a short fall in the number of beds in special departments

Increasing the number of special departments will help in providing better care to the patients

For maintaining clean and silent environment in a health organisation having enough space is a major factor

More space creates better service opportunities for the patients with better health care

This attracts more patients and increase the brand value of the organisation

Legal Implication

The Healthcare Quality Improvement Act of 1986(HCQIA) was introduced by Congressman Ron Wyden from Oregon

This act was created due to the rise in medical malpractice

In present time there are more laws added to this act by American Medical Association

But still some law firms are quite open about techniques for taking advantage of the HCQIA act

In 1991 Omnibus Budget Reconciliation Act (OBRA) was formed to report “any negative action or finding” by “any peer review or accreditation entity”

Marketing Implication

Less specialised departments shows low quality of the organisation to provide required medical resources

This creates dissatisfaction in the minds of patients further losing faith and trust

Thus loss of customer and finally less customer base

Further decrease in the customer base will give rise to loss of competitive advantage

This further give rise to loss in market share

Finally decrease in profit and declination in growth


A new special department will help to improve the quality of the health services in the organisation

It will also help to provide better care to the patients

It increase in the customer base by eradicating diseases and increasing the life expectancy of patients

This give rise to more profits to the organisation

Finally increasing the growth chart for next 5 years


Ricci-Cabello, I., Violán, C., Foguet-Boreu, Q., Mounce, L. T., & Valderas, J. M. (2015). Impact of multi-morbidity on quality of healthcare and its implications for health policy, research and clinical practice. A scoping review. European Journal of General Practice, 21(3), 192-202.

Veenema, T. G., Rains, A. B., Casey-Lockyer, M., Springer, J., & Kowal, M. (2015). Quality of healthcare services provided in disaster shelters: An integrative literature review. International emergency nursing, 23(3), 225-231.

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