Improving Healthcare Quality: Financial Analysis, Legal & Marketing

This report provides an overview of healthcare quality, defining it through parameters such as effectiveness, efficiency, equity, patient-centeredness, safety, and timeliness. It examines the organization's financial scenario, highlighting growth due to increased demand for better healthcare and improved financial performance across investing, financing, and operating activities. The report discusses the positive outcomes of better quality, including patient satisfaction, trust, and increased market share, emphasizing the importance of new specialized departments to address patient needs. It also delves into legal implications, referencing the Healthcare Quality Improvement Act of 1986 and the Omnibus Budget Reconciliation Act of 1991, and explores marketing implications related to service quality and customer satisfaction. The conclusion emphasizes that a new special department will improve health services, increase the customer base, and drive organizational growth, referencing relevant studies to support its claims. Desklib provides access to this and other solved assignments to aid students.

Quality in
Healthcare

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
scientific outcomes for care procedures
 Efficiency: It is related to increasing the quality of
health benefits 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 any disease
 Timeliness: Reduction of any delays

Contd…
 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

Contd….
 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

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

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

Conclusion
 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

Reference List
 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.