Business Case Report: IT Solution for St Cuthbert's Healthcare

This report provides a comprehensive analysis of the Australian private healthcare system, specifically focusing on the challenges and opportunities within private hospitals like St Cuthbert's Healthcare. It examines the current landscape, including regulatory, social, and ethical considerations, such as the mandatory implementation of electronic healthcare record (EHR) systems and data privacy regulations. The assignment proposes an IT solution, specifically NextGen EHR software, to address these challenges and improve healthcare service delivery. The report details the vendor's background, functionality, architecture, and equipment requirements. A significant portion of the report is dedicated to a cost-benefit analysis of implementing the EHR system, including initial and annual costs, potential benefits (such as chart pull savings, transcription savings, and drug savings), and the net financial impact. Furthermore, the report outlines a strategic approach to project implementation, defining key roles (drivers, implementers, champions, beneficiaries) and responsibilities for various stakeholders (physicians, clinicians, office managers, IT professionals, etc.). The report concludes with a list of references used to support the analysis and recommendations.

ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
Name of student
Name of university
Author’s note:

Analysis of the business context of St Cuthbert’s Healthcare:
Analysis of the nature of the business market
In Australian healthcare industry, private hospitals are owned and managed by private
organizations (IBISWorld, 2020). However, they need to take licence from government for
providing healthcare services to public and these services are also subjects to government
regulations as well. These privately owned hospitals play an important role in meeting
demand for hospital services in Australia as well.
Analysis of challenges do they face
Some of the important challenges that are affecting private hospitals in Australia are the
followings ("Private hospitals: issues and Private hospitals: issues and challenges", 2020):
• Lack of infrastructure support for meeting rising healthcare demand in Australia
• Lack of funding from government
• Lack of quality healthcare professionals for shortage of talents
• Lack of investment to design world class R&D for offering quality healthcare
services according to requirements
Analysis of constraints are they under
• Lack of research and innovation is limiting application of world class medical
technologies
• Lack of initiatives from government to transform private healthcare sector though
research and innovation
Analysis of special regulatory, social and ethical circumstances
As per the government regulation it is mandatory for hospitals including government owned,
government funded and also private hospitals to implement electronic healthcare record
system for collecting and analysing patient data for offering quality healthcare services.
However, according to “The Privacy Act (1988)”, it is responsibility of organizations that
these data are not only accurate, but it is protected from illegal access and any data breach is
subject to legal review as well ("The Privacy Act", 2020).

Analysis of breakdown or problems in the practice
• Lack of quality healthcare professionals for shortage of talents
• Not enough medical staffs are available for providing one-to-one quality
healthcare services
Analysis of processes and services do they perform
Private hospitals provide general medical services and provide medical, surgical along with
other prescribed medical services (David, 2020). Only some large private hospitals are
provided license for performing critical surgery. However, compared to government owned
hospitals, number of services offered in public hospitals are limited. Private hospitals are also
required to cover 75% of treatment fee for people through Medicare scheme.
Analysis of the key stakeholders, their needs and requirements
Stakeholders Needs and requirements
Owner of hospital Provide healthcare services to people and
ensure compliance with rules and
regulations and obtaining profit from
investment
Medical team Provide healthcare services to people and
take service fee from organization
General people Obtain healthcare services
Government Ensure that hospitals are providing quality
healthcare services to people according to
rules and regulations as well

Running head: ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
IT solution – vendor and solution
Overview of Vendor offering IT/software solutions
The EHR software chosen in this context is NextGen. They offers various tools, software and
services for automating healthcare services ("NextGen", 2020).
Analysis of their background
NextGen was established in 1974 in California and its initial name was Quality System Inc.
and this name was changed to NextGen in 2018. It is one of the leading provider of
healthcare software and services and its flagship product includes EHR software and practice
management software for healthcare industry ("NextGen", 2020).
Analysis of functions do they offer
EHR software offers functions like automating data collection about patient. It includes
demographic information about patient, their problems, medication history and this
information are shared between various departments and helps to make informed decision for
providing quality healthcare services to patient as well.
Analysis of their architecture
The architecture that they offers is cloud-based client-server architecture and it allows EHR
software to store clinical data in cloud data centre and therefore, it is possible to access these
data anytime anywhere and therefore, enhancing collaboration as well.
Analysis of equipment
Processor:
Single Processor
Memory:

1
ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
2GB Memory
Operating system:
Any supported OS in Legacy mode (x 32 bit)
Monitor:
1280×1024 pixels (24-bit)
Analysis of risks in implementation
Some of the risks of implementing EHR are the followings (Sachdev, 2020):
• Requirements for EHR software implementation are not properly identified
• Lack of technical knowledge in project team
• Lack of budget
• Issues in system integration
• Security issues and data breach leading to legal issues
Analysis of the costs and benefits of the solutions
A cost benefit analysis for implementing NextGen EHR is provided in this context (Wang,
2020).
Costs Initial Cost Year 1 Year 2 Year 3 Year 4 Year 5 Total
Software license
(annual)
$1500 $1500 $1500 $1500 $1500 $1500
Implementation $3800
Support $1400 $1400 $1400 $1400 $1400 $1400
Hardware
(refresh every 3
years)
$6800 $6600
Annual costs $13,500 $14,500 $3100 $9700 $300 $3100 $46,400
Present value of
annual costs*
$13,500 $13,619 $28 12 $8379 $2550 $2429 $42,900
Benefits
Chart pull
savings
$3000 $3000 $3000 $3000 $3000
Transcription
savings
$2700 $2700 $2700 $2700 $2700

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ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
Prevention of
adverse drug
$2200 $2200 $2200 $2200
Drug savings $16,40
0
$16,40
0
$16,40
0
$16,40
0
Laboratory
savings
$2400 $2400
Radiology
savings
$8300 $8300
Charge capture
improvement
$7700 $7700
Billing error
decrease
$7600 $7600
Annual benefits $5700 $24,30
0
$24,30
0
$50,30
0
$50,30
0
$154,90
0
Present value of
annual benefits*
$5429 $22,04
1
$20,99
1
$41,38
2
$39,41
1
$129,30
0
Net benefit
(cost)
$( 13,500) $(8600) $21,20
0
$14,60
0
$47,20
0
$47,20
0
$108,50
0
Present value of
net benefit
$( 13,100) $(8190) $19,22
9
$12,61
2
$38,83
2
$36,98
2
$86,400
* a 5% discount
rate is assumed
Analysis of strategy to proceed with the implementation project
Roles:
Some of the important roles for EHR implementation are the followings ("Successful EHR
Change Management", 2020):
Drivers:
These people will help managing changes for implementation of EHR in St Cuthbert’s
Healthcare. They will make decision and being at top of the organization and provide goals
for implementing this EHR software while taking responsibility for its success and failures as
well. People included in this group are multiple physicians, clinical leadership and office
managers as well.
Implementers:
These are the people who will make change happen and implement this software. Their
efforts will be coordinated by a project manager provide them direction and leadership
required for implementing this project. Project manager will also work in close association
with software and hardware vendors for ensuring success in this project.

3
ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
Champions:
These people will support organizational changes for implementation of EHR and
communicate benefits of EHR implementation to peers for obtaining support required for
making this project successful.
Beneficiaries:
It will include people who will be benefited from automation of healthcare services provided
by implementation of EHR software. In includes physician, doctors, nurses and patient in
general as they will receive healthcare services that is fast and accurate as well.
Responsibilities:
Some of the important roles for EHR implementation are the followings ("Successful EHR
Change Management", 2020):
Physicians:
• establishing goals to implement EHR
• evaluation and selection of technology
• choosing EHR vendor
• Addressing clinical needs
• managing staff buy-in
• defining scope for project and providing budget
• monitoring productivity
• making projections for profitability and checking progress
• tracking staff satisfaction
Clinicians:
• evaluating clinical workflows while recommending changes

4
ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
• providing validation for clinical workflow
• Measure clinical usability of this software
• Potential: ensuring coordination with vendor regarding troubleshooting
Office Manager:
• evaluation of daily performance of EHR software
• analysing integration of software with existing technology in organization
• identification of requirements for data conversion and clinical reporting needs
• managing system training
• Potential: Serve as project manager
• Potential: ensuring coordination with vendor regarding troubleshooting
Front Office Staff:
• collecting details regarding any incompatibilities along with system glitches
• helping in transition while organization moving from manual records to EHR data
• collecting authorizations for patient insurance
IT Professional:
• analysing software and hardware requirements
• managing EHR software testing and go-live
• coordinating service and support
• supervising upgrades/maintenance
• Potential: work as a project manager
• Potential: ensuring coordination with vendor regarding troubleshooting

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ANALYSIS OF AUSTRALIA PRIVATE HEALTH CARE SYSTEM
References:
David, R. (2020). private healthcare Australia. Retrieved 16 April 2020, from
https://treasury.gov.au/sites/default/files/2019-03/C2016-052_Private-Healthcare-
Australia.pdf.
Electronic health records (EHR). (2020). Retrieved 16 April 2020, from
https://www.nextgen.com/products-and-services/electronic-health-records-ehr.
IBISWorld, I. (2020). Market Research Reports & Analysis | IBISWorld AU. Retrieved 16
April 2020, from https://www.ibisworld.com.au/industry-trends/market-research-
reports/health-care-social-assistance/private-general-hospitals.html.
NextGen. (2020). Retrieved 16 April 2020, from https://www.nextgen.com/about-us.
Private hospitals: issues and Private hospitals: issues and challenges. (2020). Retrieved 16
April 2020, from
http://www.companydirectors.com.au/~/media/7FEB650789A74FBBAB07C0191EB
BBCA3.ashx.
Sachdev, R. (2020). Retrieved 16 April 2020, from
https://assets.hcca-info.org/Portals/0/PDFs/Resources/Conference_Handouts/
Clinical_Practice_Compliance_Conference/2011/Conference/202_Sachdev.pdf.
Successful EHR Change Management. (2020). Retrieved 16 April 2020, from
https://www.connection.com/~/media/pdfs/brands/h/hp/26316-successful-ehr-change-
management-white-paper.pdf?v=1&la=en.
The Privacy Act. (2020). Retrieved 16 April 2020, from https://www.oaic.gov.au/privacy/the-
privacy-act/.
Wang, S. (2020). A cost-benefit analysis of electronic medical records in primary care |
AHRQ Digital Healthcare Research: Informing Improvement in Care Quality, Safety,
and Efficiency. Retrieved 16 April 2020, from https://digital.ahrq.gov/health-it-tools-
and-resources/health-it-costs-and-benefits-database/cost-benefit-analysis-electronic.