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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Student Name

Capella University

MHA-FPX5062 Healthcare Delivery: New Environments in Health Informatics

Prof. Name

Date

Executive Summary

The strategic vision of Vila Health focuses on delivering top-tier healthcare services to its diverse patient base while aligning with state, federal, and organizational benchmarks. This commitment is paired with the goal of achieving financial sustainability and operational excellence. To ensure these objectives are met, a cost-benefit analysis has been proposed to evaluate existing assets within each acquired organization prior to integrating IT resources, systems, and software.

This integration strategy emphasizes understanding the current infrastructure, identifying cost implications, and ensuring the smooth migration of health information systems. The healthcare landscape continues to evolve, influenced by regulatory changes, technological advancements, and shifting patient needs. Consequently, decisions regarding IT upgrades, workflow optimization, and service enhancement must reflect these dynamic conditions.

Vila Health has already implemented significant upgrades to its Electronic Health Record (EHR) system, positioning itself to effectively incorporate newly acquired health systems. The system meets standard operational and compliance requirements, supporting critical areas such as patient portals, case management, care coordination, daily census tracking, and admission management.

During recent departmental roundtable discussions, representatives highlighted specific functionalities necessary to enhance clinical efficiency and patient engagement. Each facility’s reporting and operational requirements differ slightly; however, they share foundational elements that can be customized to meet unique patient population needs. The Director of Operations initially estimated a transition cost of approximately $70,000, though this figure could increase based on each location’s current systems, infrastructure readiness, and staffing needs for the migration process.

Table 1

Preliminary IT Integration Cost Analysis

Category	Description	Estimated Cost (USD)	Notes
Software Integration	Merging EHR and patient management systems	$25,000	Customization may increase cost
Staff Training	Training clinical and administrative staff on new systems	$10,000	Based on training hours and facility size
Infrastructure Upgrades	Hardware, network, and server enhancements	$20,000	May vary by facility
Data Migration	Secure transfer and validation of legacy data	$15,000	Dependent on data volume
Total Estimated Cost		$70,000	Subject to reassessment after site evaluation

Source: Director of Operations, Vila Health (2025)

To reduce hospital readmissions, Vila Health must establish a comprehensive post-discharge follow-up process. Clinical teams should have complete access to patients’ medical histories, particularly for high-risk individuals. Research indicates that over 25% of readmissions within 30 days are due to unrelated conditions (HealthcareMBA, 2024). Therefore, developing preventive protocols and conducting holistic health assessments post-discharge are crucial for minimizing avoidable rehospitalizations.

Evolving Needs of Patients

The healthcare industry must continually adapt to the changing needs and expectations of patients. As medical research introduces new treatments and cures, the entire system must adjust to accommodate these innovations. The aging population further challenges healthcare organizations to expand services related to chronic disease management, geriatric care, and long-term support.

Additionally, technological advancements are transforming patient engagement and empowerment. Enhanced access to health information through digital tools, mobile apps, and patient portals allows individuals to participate actively in managing their care. This shift aligns with broader trends toward personalized medicine and data-driven decision-making in healthcare delivery (HealthcareMBA, 2024).

Table 2

Factors Influencing Evolving Patient Needs

Factor	Impact on Healthcare System	Example
Aging Population	Increased demand for chronic disease management	More Medicare utilization
Technological Advancement	Greater patient access to health data	Use of wearable monitoring devices
New Treatments & Cures	Changes in care protocols and drug management	Introduction of precision medicine
Patient Empowerment	Growth in self-management and preventive care	Use of digital health records

Competency 5: System Needs and Cost-Benefit Analysis

Identify the Components of a Health Information System

A comprehensive health information system (HIS) includes hardware, software, data management tools, communication networks, and security protocols that collectively ensure accurate, timely, and secure handling of patient information.

Analyze the Costs of Implementing an Upgraded System

The initial cost of implementing a new HIS includes infrastructure development, training, data migration, and ongoing technical support. Although these costs may appear high upfront, they can reduce administrative burden, minimize errors, and improve operational efficiency in the long term.

Analyze the Benefits of Implementing an Upgraded System

Benefits include enhanced clinical decision-making, streamlined workflows, reduced redundancies, and improved patient satisfaction. Upgraded systems support better care coordination, leading to improved outcomes and compliance with regulatory standards.

Analyze the Costs and Benefits of Not Implementing an Upgraded System

Failure to upgrade systems can result in data silos, inefficiencies, and security vulnerabilities. Over time, outdated systems may incur higher maintenance costs and impede the organization’s ability to meet compliance requirements and performance benchmarks.

Make Implementation Recommendations Based on Cost-Benefit Analysis

Based on the analysis, Vila Health should proceed with a phased system integration approach. This allows gradual implementation, minimizing disruption to operations while optimizing costs. Regular evaluations should be conducted to monitor progress, performance outcomes, and financial sustainability.

References

HealthcareMBA. (2024). How we can expect the healthcare industry to change in the future. George Washington University. https://healthcaremba.gwu.edu/blog/how-we-can-expect-the-healthcare-industry-to-change-in-the-future/

Vila Health. (2025). Internal operational and financial review report. Vila Health Systems.