Recommendation on MHS Service Area for Strategic Plan - Finance Memo

This finance memo, prepared by Daniel Osei for Excelsior College, recommends prioritizing ambulatory services within the Metropolis Health System (MHS) strategic plan. The memo highlights MHS's success in reducing hospital stays while noting a significant increase in outpatient/same-day surgery visits. It proposes focusing on ambulatory services to further reduce hospital admissions and improve preventative care. The memo outlines a five-year strategic plan, suggesting the CFO appoint a senior vice president to identify and implement the best ambulatory services, including cost analysis and patient benefit assessment. The memo also details the scope of ambulatory services, including diagnosis, treatment, and rehabilitation, and emphasizes the potential for reducing hospital admissions through regular check-ups and early intervention. The memo further suggests establishing ambulatory units with mobile services and emergency care capabilities to enhance patient care and reduce the average length of stay. The memo also provides financial projections, including a target gross profit margin and operational cost estimates. References to relevant financial and healthcare literature are included.

Finance Memo
Daniel Osei
Excelsior College

Memorandum
Chief Executive Officer
From: Daniel
Subject: Recommendation on the service area to be prioritised in strategic plan
Sir/Madam,
The objective of MHS is to provide prevention from diseases rather than treatment of
them. The organisational goal is succeeded as it has been able to reduce the number of people
staying in the hospital in a year by 1000 patients, but the number of in-day surgery patients
has increased by 50000 people per year. Which directly displays the organisation is
performing its duties in a correct and constructed manner. Being a senior manager, it is my
responsibility of recommending the strategic planning and prioritising the identified the areas
of services that the chief financial officer and the other seven senior vice presidents must
concentrate (Addison, 2017).
Strategic planning:
The objectives must be fulfilled in the coming five years of service. I propose to prioritize the
ambulatory services. The CFO of the organisation will appoint one senior vice president to
identify the best ambulatory service available in the market and what are key benefits and the
deficiency that are engaged in the services. After identifying the best way, they will identify
the incidental cost of application of the service, and they must commit that how the patients
of the Metropolis will be benefited. Therefore, the CFO and other seven vice presidents must
commence their five-year strategic planning by introducing a well-constructed and quality
ambulatory service to the patients. In the ambulatory service, the management need to
estimate a budgeted statement and fix the charges in such way so that the management is able
to earn 30 % gross profit from the service. The other charges of operation will include payroll
cost, support service, operating room emergency service which will cost additionally 30%
more on the current cost of operation.
Ambulatory service:
The word “ambulatory service” contains the diagnosis, observation, consultation,
treatment, intervention, and rehabilitation services as the part of Medicare service that are
being provided to a patient who needs health care services for the illness or for getting injured
by the treatment of a physician. The organisations’ objective is they want to reduce the need
of hospital admission of the patients by implementation the ambulatory services and the
inpatients care such as diabetes or COPD, by providing the ambulatory service, much
medical investigation and treatment procedure can be performed in against of chronicle
illness and preventive health care. Minor surgical and medical treatment are sheltered under
ambulatory service like dental service, dermatology service and minimal services that are
require less medical procedures. Blood test, x-ray, ultrasonography, ECG and other services
are considered as the ambulatory service (Buchanan, 2014). By this the organisation can
shorten the process of treatment and by conducting regular blood test, urine check-up, fasting

blood sugar test will reduce the chances of admission of the patients in the hospitals, as the
treatment procedure will be enacted in the primary stages, and the chances of curability will
be very high. Further, the regular checking procedure will help the organisation eliminate any
lethal and transferring diesis in the population. The services will be provided by the existing
hospitals on outpatient’s basis, which means the hospital will provide the treatment and
diagnostic procedure without admitting the patient in the hospital. The patients who are
affected by diesis or being injured will go to the outdoor unit of the hospital where after the
necessary treatment the patient they will be sent home. If there are no huge issues therefore
after the basic treatment like providing medicines, blood pressure check-up, x-ray and other
activities are provided for which the admission of the patient is not required. The ambulatory
service unit can be established by setting dialysis clinic, surgical centres, in the outpatient
department of the hospital where the general physicians and health care professional will be
appointed. Further, in case of emergency care treatment the patients with the possibilities of
life threatening symptoms will be usually treated by the ambulatory service in the normal
scenario. After recommendation of the doctors or other health specialist the patient can be
admitted in the hospital for enhance treatment (Addison, 2017). In a financial year, the
hospital conduct 11820 patients as emergency visits, and the blood and other medical
treatment related to laboratory work conduct tests and other for 2750 thousand units. The
ambulance trips are approximately 2320, which is expect to be increased by 25% by the
introduction of mobile facility. Further, the home care visit may be lover as the enhancement
of the ambulatory service. Now the hospital attains 14950 patients from home visits.
In the study, the Metropolis Health System is trying to implement some features of
hospital or health care services in the metropolis city. The senior manager is asked to
recommend the CEO and other seven vice president to prioritize the strategic planning
procedure. The senior manager has found and concluded that the ambulatory service will be
given the utmost priority that needs to be implemented. The hospital management fits to
implement mobile service for the critical patient. In this procedure, the patient party can book
an immediate as well as regular treatment appointment for the service. In addition to that, the
company will be able to provide the utmost service to the client. Further, the hospitals are
advised to set up an ambulatory unit as soon as possible so that they can provide the
emergency care to the patients by assessing, diagnosing, and treating them at the hospital and
release them in the same day. As this will lower the cost of average length of stay from 4.1
days to 2.5 to 3.5 days.

References
Addison, P. S. (2017). The illustrated wavelet transform handbook: introductory theory and
applications in science, engineering, medicine and finance. CRC press.
Buchanan, J. M. (2014). Public finance in democratic process: Fiscal institutions and
individual choice. UNC Press Books.
Härdle, W. K., Hautsch, N., & Overbeck, L. (Eds.). (2017). Applied quantitative
finance (Vol. 2). Springer.
Minsky, H. (2016). Can" it" happen again?: essays on instability and finance. Routledge.