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Cost Measurement and Allocation Processes for Acquiring Financing Assets

Today, a lot of health care organizations are looking at undertaking large and ambitious facilities expansions. As part of its planning process, the organization learned of evidence-based principles (EBP) that are having a positive impact on patient care and safety and staff working conditions. Although promising, there is a lack of or limited empirical research that addresses the cost and benefit of incorporating many of these principle concepts into one hospital setting. More research is needed into the organizational decision-making process used by healthcare administrators when considering the use of EBD in expansion projects.
a.How do health care organization leaders make decisions in the selection of healthcare design concepts? How much input from the staff is considered in design decisions?
b.How do financial decisions come into play with these plans?
c.What criteria did healthcare leaders use in the decision-making process?
Your initial response should be 150 to 200 words in length for each question and include at least one academic source that is properly cited.

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Cost Measurement and Allocation Processes for Acquiring Financing Assets 

According to Shoemaker et al. (2010), organizational leaders make decisions in the selection of healthcare design concepts using a unique approach. They rely on tools modeled from different "balanced scorecard domains of finance, customer service, quality, and workplace development" (Shoemaker et al., 2010). Here, input from the employees plays a critical role. The design team should rely on nurse leaders to validate design assumptions about healthcare delivery and maximize operational efficiency. Also, involving employees such as nurses ensures that the design team benefits from the marketing, presentation, critical thinking, and marketing experience of the nurses. Nurses' commitment to integrity, personal growth, and excellence are key elements to have the project delivered correctly.

Financial decisions are an important part of the design process. In planning, for example, the design team must recommend or focus on designing things that a healthcare facility can afford. Through proper financial analysis, healthcare leaders and the design team can minimize risks, ensure that they are making the right investment, and evaluate the return on investment. For instance, the team can decide whether renovation is more feasible compared to building a new facility. The benefits should outweigh the risks for the project to qualify as financially beneficial. Improving patient care outcomes despite a massive initial investment should compel a team to undertake a project.

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Healthcare leaders rely on specific criteria in the decision-making process. The two major criteria include financial considerations such as the life-cycle costs and return on investment; and patient safety care such as the ease and efficiency for providers in providing patient care (Shoemaker et al., 2010). Here the team should only uphold the criteria best supported by available evidence. For instance, if evidence suggests that quality should always override cost implications, then the team should ensure that they do not compromise on the former to satisfy the latter.

 

 

References

Shoemaker, L. K., Kazley, A. S., & White, A. (2010). Making the case for evidence-based design in healthcare: a descriptive case study of organizational decision making. HERD: Health Environments Research & Design Journal, 4(1), 56-88.

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