A Comprehensive Report on Health Care's Effect on the Economy

This report examines the economic impact of healthcare, focusing on the role of information technology (IT) in managed care organizations (MCOs). It highlights key elements of information systems, such as timeliness, accuracy, and relevance, and proposes the use of transaction processing systems to address cost issues. The report also suggests implementing the Kareo Electronic Health Record (EHR) program to ensure data accuracy, security, and compliance with HIPAA regulations, estimating potential profits of around $1 billion for MCOs. Furthermore, it evaluates the strengths and weaknesses of in-sourcing versus outsourcing IT needs, emphasizing the importance of improved electronic access to health-related information for better healthcare services, patient safety, and confidentiality. Desklib provides access to this report and other solved assignments to support student learning.

Running head: HEALTH CARE EFFECT ON ECONOMY
Health Care Effect on Economy
Name of the Student:
Name of the University:

1HEALTH CARE EFFECT ON ECONOMY
Table of Contents
1. Key elements of information system for MCO...........................................................................2
2. Technology used in MCO............................................................................................................2
3. Propose Electronic Health Record (EHR) program.....................................................................3
4. Strengths and weaknesses of in sourcing versus outsourcing of IT needs..................................3
References........................................................................................................................................5

2HEALTH CARE EFFECT ON ECONOMY
1. Key elements of information system for MCO
The key important purpose of information technology (IT) for managed care organization
(MCO) is means to support their business. The key elements of the information system are:
Timeliness: The information system can able to provide distributing information to the
right users. It has ability to provide short as well as long reports of information. It can help to
process and produce results from the data (Burwell, 2015).
Accuracy: The information system provides control checks to edit balancing. The
external and internal audit programs are done by the organization to offer adequacy of the
internal control (Wright, Aaron, & Sittig, 2016).
Relevance: The information is relevant to objectives of the organization and its
strategies. The information which is too detailed should sort out using the information system.
2. Technology used in MCO
The proposed technology or system which is used in MCO is transaction processing
system to overcome with cost issues. The system is involved to collect and retrieve transactional
data. The system is included performance, reliability as well as consistency. Speed as well as
accuracy is achieved by the proposed system and programmed to follow the routines functions
within the organization (Manogaran et al., 2017). The main benefit of this technology is ability to
gain more customers and their high satisfaction level. The system allows people from all over the
world to access the business along with buy goods and services for MCO.

3HEALTH CARE EFFECT ON ECONOMY
3. Propose Electronic Health Record (EHR) program
Kareo EHR is a program which is certified under Health Insurance Portability and
Accountability (HIPAA) act. The main function of this program is to join healthcare business
organization perfectly and shared of required information installed into the EHR system. This
program also makes certain that the information is inaccuracy free along with stored effortlessly
while assembly with HIPAA privacy act. Meeting security along with private regulations
furthermore EHR program will discard access to the unconstitutional person as this exacting
program is operated later than right codes are inputted (Laudon & Laudon, 2016). The program s
cost effective as it shares data across the organizational teams. The efficiency of the system
provides right to use of data dependably at negligible cost. Throughout the program, MCO is
able to get the predictable profits of around 1 billion dollars.
4. Strengths and weaknesses of in sourcing versus outsourcing of IT needs
In souring vs
outsourcing
In Sourcing Outsourcing
Strengths  The strength of in-sourcing is
control which keeps the project
controlled by increasing staffs
and resources (Wright, Aaron,
& Sittig, 2016).
 In-sourcing has customer
satisfaction, reputational
management benefits.
 The outsourced vendors have
technical expertise and
effective works are completed
faster with better quality output
(Burwell, 2015).
 It reduces operational,
recruitment cost.

4HEALTH CARE EFFECT ON ECONOMY
Weaknesses  It promotes ineffective
material skills and abilities.
 It can increase production, as
well as operating cost (Laudon
& Laudon, 2016).
 It is involved to expose of
confidential information to the
third party (Manogaran et al.,
2017).
 Outsourcing is cost effective
when it is involved with hidden
cost at time of contract signing.
Recommendations based on evaluation
EHR design and implementation for MCO should improve electronic access to the health
related information. It can improve healthcare services, safety and protection of patient
confidentiality as well as privacy.

5HEALTH CARE EFFECT ON ECONOMY
References
Burwell, S. M. (2015). Setting value-based payment goals—HHS efforts to improve US health
care. N Engl J Med, 372(10), 897-899.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Manogaran, G., Thota, C., Lopez, D., Vijayakumar, V., Abbas, K. M., & Sundarsekar, R. (2017).
Big data knowledge system in healthcare. In Internet of things and big data technologies
for next generation healthcare (pp. 133-157). Springer, Cham.
Wright, A., Aaron, S., & Sittig, D. F. (2016). Testing electronic health records in the
“production” environment: an essential step in the journey to a safe and effective health
care system. Journal of the American Medical Informatics Association, 24(1), 188-192.