MHA FPX 5064 Assessment 4 Executive Summary Cost Benefit Analysis for HIS Implementation

MHA FPX 5064 Assessment 4 Executive Summary Cost Benefit Analysis for HIS Implementation

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Capella University

MHA-FPX5064 Health Information Systems Analysis and Design for Administrators

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Executive Summary

The strategic direction of Vila Health reflects a steadfast commitment to delivering best-in-class patient care while meeting or exceeding local, state, and federal performance benchmarks. In alignment with these goals, the organization seeks to ensure that its financial objectives are achieved through efficient integration and optimization of healthcare operations.

To support this vision, a cost-benefit analysis has been requested to identify the assets of each acquired organization prior to integrating their information technology (IT) systems and migrating software resources. This initiative will allow Vila Health to streamline operations across its newly merged health systems, optimize efficiency, and reduce redundancy.

At a high level, this proposal outlines key considerations and challenges associated with the integration of merged systems. These include compliance with evolving regulatory requirements, adapting to healthcare delivery trends, and maintaining competitive financial performance. Vila Health’s prior success in implementing Electronic Health Record (EHR) upgrades provides a strong foundation for this transition. The enhanced EHR meets standard operating requirements and positions the organization to seamlessly incorporate newly acquired facilities.

During a recent roundtable discussion, departmental representatives expressed both opportunities and challenges related to IT integration. Concerns included the need for enhanced patient portals, improved case management and care coordination tools, and more comprehensive reporting capabilities. Each department emphasized that while operational needs differ among locations, the core infrastructure could be customized to meet diverse patient care requirements effectively.

Preliminary cost projections indicate that migrating these facilities to the primary system would cost approximately $70,000, as estimated by the Director of Operations. However, a deeper evaluation of each facility’s existing systems and staffing requirements may reveal additional costs.

Holistic Approach to Reducing Readmissions

To minimize hospital readmissions, managers must adopt a comprehensive post-discharge strategy. A patient-centered approach ensures that clinical teams have access to each patient’s complete medical history, particularly in high-risk cases. Research suggests that approximately 25% of all readmissions within 30 days occur due to conditions unrelated to the initial hospitalization.

Therefore, hospitals should implement standardized follow-up protocols to identify potential risk factors that could result in rehospitalization. For example, automated alerts within the EHR can notify clinicians of comorbidities that require attention during post-discharge care (George Washington University, n.d.).

Strategy	Purpose	Expected Outcome
Comprehensive discharge planning	Ensure patients understand post-discharge care instructions	Reduced likelihood of complications or readmissions
EHR-based alerts	Identify patients at high risk of rehospitalization	Early intervention and coordinated follow-up
Staff education and training	Increase awareness of cross-condition risks	Improved patient outcomes and satisfaction

Implementing these approaches ensures a holistic, proactive system that aligns with the value-based care model, focusing on both patient wellness and cost efficiency.

Evolving Needs of Patients

The demand for healthcare services continues to evolve due to demographic shifts, technological innovations, and emerging diseases. Each year, new treatments and medications reshape how care is delivered. These advancements benefit patients but also place increased pressure on healthcare systems to adapt operationally and financially.

As chronic illnesses become more prevalent, healthcare providers must invest in preventive care programs and integrate data analytics to track patient outcomes. Moreover, as the population ages, dependence on Medicare and Medicaid continues to rise, requiring strategic resource allocation.

Another key trend is the rise of patient empowerment—driven by technology and information accessibility. Patients increasingly engage in shared decision-making, use digital tools to monitor their health, and demand transparency regarding care quality and costs. Vila Health must leverage this shift by expanding its digital health offerings, including patient portals, telehealth platforms, and remote monitoring solutions.

Competency 5: Analyzing Current and Future System Needs

Identify the Components of a Health Information System

A health information system (HIS) encompasses several integrated components designed to manage clinical, financial, and administrative operations. These include:

Component	Function
Electronic Health Records (EHR)	Centralized digital patient information system
Clinical Decision Support Systems (CDSS)	Assist clinicians in evidence-based decision-making
Patient Portals	Enable patient access to health records and communication with providers
Billing and Revenue Cycle Management	Handle financial transactions and insurance claims
Data Analytics and Reporting Tools	Provide insights for quality improvement and compliance

Analyze the Costs of Implementing an Upgraded System

The implementation costs of an upgraded HIS can vary based on the size of the organization, system complexity, and training requirements. For Vila Health, direct costs include software licensing, hardware upgrades, data migration, and staff training. Indirect costs may involve temporary workflow disruptions and potential productivity loss during the transition phase.

Analyze the Benefits of Implementing an Upgraded System

The benefits of system upgrades extend beyond cost savings. They include improved patient outcomes, enhanced data accuracy, streamlined workflows, and regulatory compliance. Integration also facilitates real-time data sharing, improving care coordination and reducing duplication of services.

Analyze the Costs and Benefits of Not Implementing an Upgraded System

Failure to upgrade or integrate systems could result in inefficient workflows, data silos, and reduced interoperability. Over time, this could lead to compliance risks, lower patient satisfaction, and missed financial opportunities. The cost of inaction often surpasses the cost of implementation, especially as regulatory standards and interoperability requirements become more stringent.

Implementation Recommendations Based on Cost-Benefit Analysis

After a thorough cost-benefit assessment, Vila Health should proceed with the phased integration of its IT infrastructure. The strategy should include:

1. Conducting a comprehensive system audit of all facilities.

2. Prioritizing critical functionalities such as EHR integration and patient portals.

3. Implementing training programs for staff to ensure smooth adoption.

4. Establishing a performance monitoring framework to evaluate post-implementation outcomes.

This structured approach ensures financial accountability, operational efficiency, and continuous quality improvement across the organization.

References

George Washington University. (n.d.). How we can expect the healthcare industry to change in the future. Retrieved from https://healthcaremba.gwu.edu/blog/how-we-can-expect-the-healthcare-industry-to-change-in-the-future/

MHA FPX 5064 Assessment 4 Executive Summary Cost Benefit Analysis for HIS Implementation

HealthIT.gov. (2023). Benefits of EHRs and health IT. U.S. Department of Health and Human Services. https://www.healthit.gov

Institute for Healthcare Improvement. (2024). Reducing hospital readmissions: Strategies and best practices. https://www.ihi.org

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