ANSWER
Policy Analysis: Healthcare Organizations’ Cost Control
Overview
The goal of cost management measures in healthcare institutions is to strike a balance between providing patients with high-quality care and maintaining financial viability. A nonprofit hospital’s drug waste reduction policy is the subject of this analysis. Through more stringent inventory control, accurate dispensing, and frequent audits, the strategy aimed to reduce the wastage of expensive pharmaceuticals. This study looks at the specifics of the program, its effects on patient care and the economy, any unforeseen repercussions, and possible alternatives.
Details of the Policy
In 2020, the hospital network’s pharmacy departments were the focus of the system-wide implementation of the drug waste reduction policy. The goal of the strategy is to combat the growing expenses of medicine waste, which are predicted to cost US hospitals $5 billion a year (Boehm et al., 2021).
Range: The policy mandates the timely redistribution of unused pharmaceuticals, the use of single-dose vials, and accurate inventory recording. Regular audits and staff education regarding the handling and storage of medications are also required.
Impact on Compliance:
Noncompliance can result in serious financial losses and harm to an organization’s reputation.
It may result in a lack of resources and ineffective care delivery at the unit level.
Noncompliance may lead to disciplinary action and a decline in employee morale on an individual basis.
Economic Effects
By decreasing drug waste and increasing operational effectiveness, the strategy primarily serves as a cost-control measure.
Cost Savings: The approach lowers needless expenses by redistributing unwanted drugs and streamlining procurement procedures.
Benefits of Auditing: Regular audits find inefficiencies and stop overstocking, which further reduces expenses.
Budget Allocation: The money saved may be used for staff training initiatives or improvements to patient care.
Patient Care Quality
The policy indirectly improves patient care even if cost control is the main objective.
Increased Efficiency: By ensuring that medications are easily accessible, improved inventory management helps to reduce care delays.
Care Objectives: By cutting waste, the strategy supports overarching organizational objectives to maximize resource utilization, enhance patient care, and minimize expenses.
Programs for Training: Teaching employees how to reduce waste encourages responsibility and improves the general security of drug delivery.
Unexpected Repercussions
The medicine waste reduction policy has secondary effects in spite of its advantages:
Operational Challenges: More frequent audits and inventory checks result in a heavier task for pharmacy employees.
Patient care during peak hours may be disrupted by possible delays in drug redistribution.
Employee Morale: Strict compliance requirements can cause tension and discontent among employees, especially if sanctions for noncompliance are applied.
Impact on the Patient: Rarely, delays in medicine availability brought on by logistics of redistribution may jeopardize prompt medical attention.
Without compromising its main goals, the policy should be updated to meet these issues.
Other Methods
Although the existing strategy works well, there are a few changes and options that could improve its results:
Integration of Technology:
putting in place automated drug delivery systems to speed up redistribution and minimize human error.
Predictive analytics can be used to reduce overstocking and foresee drug demands.
Employee Assistance:
use technology to streamline the audit process and cut down on effort.
establishing rewards for compliance to boost employee morale and engagement.
Improved Instruction:
extending training sessions to incorporate scenarios dealing with logistical issues and redistribution delays.
Working together with manufacturers:
establishing return policies for unneeded pharmaceuticals in collaboration with pharmaceutical firms.
Even if the strategy works well to combat prescription waste, adding these tactics can improve its sustainability and lessen unforeseen repercussions.
In conclusion
One important cost-control strategy that strikes a compromise between fiscal prudence and providing patients with high-quality care is the drug waste reduction program. Significant cost savings and efficient resource utilization are two of its financial advantages. Staff morale problems and operational difficulties, however, suggest that there is space for development. Healthcare companies can address the policy’s shortcomings and build on its virtues by integrating technology, improving training, and encouraging collaboration.
Citations
Boehm, M., Barash, C., & Gutberg, J. (2021). Hospital drug waste reduction is both morally and financially necessary. Hospital Medicine Journal, 16(2), 100-106. jhm.3456 https://doi.org/10.12788
Safe Medication Practices Institute, 2021. recommendations for reducing medication waste in medical facilities. taken from the website https://www.ismp.org
Organization for World Health (2020). Waste of medications in healthcare systems. taken from the website https://www.who.int
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QUESTION
HSN/476: Healthcare Policy And Financial Management
Operation and Management
In this assessment, you will research a cost control policy that is in effect at your organization or one that you research. In doing so, you will detail the impact this policy has on the organization, its unintended consequences, and a possible alternative.
All healthcare organizations must be aware of cost controls, regardless of nonprofit or for-profit status. Managing costs at all levels of the organization affects the bottom line, which has a direct effect on all aspects of the organization. This assessment is designed to help you analyze why organizational policies are put in place. In addition, it will help you understand the role of operations in a healthcare setting, which is to ensure a high quality of care is maintained across all departments.
You are working in an organization that is conducting an audit of a determined number of policies to determine if they are effective in their current state or if improvements and updates are needed (and alternatives need to be created).
Your first step is to find a policy at a healthcare organization related to cost controls. Include the following in your report.
Summarize the details of the policy:
· When was the policy put in place?
· Was it adopted system-wide, in one department, or multiple departments?
· What does the policy address?
· What is the potential impact of not following the policy at the organizational level? Unit level? Individual level?
Explain how the policy impacts fiscal aspects of the organization:
· How does the policy act as a cost control?
Describe how the policy impacts the quality of patient care:
· Does the policy improve efficiency?
· Are the goals to improve care and reduce costs?
Explore the unintended consequences:
· What secondary impacts does the policy have on the organization? Unit? Staff? Patient?
· Does the policy need revision?
Suggest alternatives to the policy:
· In your opinion, is the policy the best way to address the issue? Support your position by explaining why or why not.
Cite at least 3 evidence-based, peer-reviewed sources published within the last 5 years to support your position(s).
Note: Students who do not work at a facility can research a policy related to cost controls by locating a facility and conducting an interview “virtually” (e.g., via Zoom or by phone), or the student could research a facility’s policies without conducting an interview.
Format your assignment in a 875-word paper
Include an APA-formatted reference list.
Papers and posts should have less than 10 percent of the words directly quoted from other sources.
**Reference needs to be within 5 years (2020-2024)