Principles of Healthcare Business Finance

Principles of Healthcare Business Finance. This document has been created in the event that you would like to use a template format in which to meet the requirements of the Business Plan component of the paper. This is optional and you do not have to use it. The bullet points are points that you should include in each section, not an indication that you should bullet point that particular section.  You are still required to submit an executive summary as a separate attachment.

Please read the directions and rubric and utilize those documents as you write this paper.

This performance assessment requires two separate documents:

1). The main sections of the task Sections A-B

2). An executive summary Section C

Section A1:

Directions:A.  Evaluate your organization’s current status with implementation of VBP by doing the following:

  1. Discuss to what degree your organization has embraced VBP. This section should be 1-2 paragraphs.
·       It is always a good idea to begin with a brief discussion of VBP to provide the reader some context as to the topic. This also helps you develop a better understanding of your organization’s role in implementing VBP.

·       If you are not sure what your organization has implemented thus far, ask some of the people in your organization about it, and you can look on the CMS website at some of the initiative for the past few years, and see if they ring true to your organization.

·       If you are really unsure about all of this…take a look at this document. It’s a 2012 document, but it give some really good information in a question answer format that might be of help to you:


·       Here’s another one that describes the domains and provide a link to the 2016 initiatives:


Section B1-B6:

 This section can be done in the format of the table below.  Please keep in mind you will have to fill out the table below 3 times for each of your three departments.

  • Section B.  Create a strategic plan to continue progressing VBP in your organization by doing the following:
  • 1.  Identify three departments that will have the most impact on VBP in your organization. (Nursing, Clinical support, case management, finance, risk management, education, medical staff office, physician services, Physician practices, community and public relations, marketing)
  • a.  Explain why the roles and functions of these three departments are important for implementing VBP in your organization. (Rational for choosing…)
  • 2.  Discuss goals, for each of the three departments, that will help your organization further the implementation of VBP. (Specific, Measurable, Achievable, Relevant, Time-bound)
  • 3.  Describe how each of the goals chosen in part B2 will help attain quality outcomes in both patient care and reimbursements over the next three years.
  • 4.  Identify the key points for your strategic plan that are critical for the staff to understand and embrace.
  • a.  Discuss how you would market the key points of your plan to staff members.
  • 5.  Reflect on how ethical clinical and ethical business practices will be incorporated into the strategic plan.
  • 6.  Explain how to coordinate informational and educational events for the three departments identified in part B1.
B1-B1a. Department One (You will put the name of your first department here) You will also explain WHY the role AND the function of this department is important for implementing VBP in your organization.
B2. Goal- (This is where you will write the SMART goal that you created for the first department. If you have placed it in time increments, they all go here)
B3. Attaining Quality Outcomes in patient care over next 3 years.  This can be bullet pointed as long as you are very descriptive.

Some examples or this:

•       Improved Communication-better outcomes

•       Patient Empowerment

•       Collaborative care

•       Improved education which adds up to quality care.

•       Better standardization of care delivery for meeting core measures

Attaining Quality Outcomes in reimbursement over the next 3 years.  This can be bullet pointed as long as you are very descriptive.

Some examples of this:

•       Reduced readmissions related to better outcomes

•       Improved HCAHPS related to higher satisfaction

•       Increased census related to improved community reputation

B4. Key Points (You would place those critical points that you want the staff to take away and practice for your first department. You can bullet these in this section)
B4A. Marketing Techniques for those Key Points

How do you plan to market those key points for your first goal?

You could bullet those topics here

B6 Coordinating Informational Events

Using your department  you would describe (bullet) you informational events

B6 coordinating Educational Events

This section is where you would describe briefly (using bullets) your educational events for your department

Section B5: ( This section is to be placed after your 3 tables)

 Directions:  Reflect on how ethical clinical and ethical business practices will be incorporated into the strategic plan.

This section is best written in 2 paragraphs, one for ethical clinical and one for ethical business. This section is to be developed as a discussion of the overall plan.

  • Using ethical principles (i.e. beneficence, nonmaleficence, autonomy, fidelity and justice) you can apply those to business ethics, and clinical practice.
  • Some of the ideas that you could discuss is the concept of confidentiality in communication with the patient. When we speak to patients, we have to make sure that we maintain their confidential information, and practice fidelity in not sharing this information with anyone that the patient has not approved. This is both an example of clinical and business ethics.

Section B7 Timeline:

 In this section you can use the table below.  You do not have to use our time increments.  You can put in your own time increments. You only need to have one timeline table.

  • 7.  Develop a timeline to ensure that VBP is addressed over the next three years.
Time Increments Department One Department Two Department Three
0-9 months This section could encompass the development of the initiative In the timeline, you would include anything that you would do to develop the initiative-you can pull this information right out of your plan and bullet it here If you wanted to use a QI model (i.e. PDSA). This works too in a time line that has four periods of time.



10-18 months This section could be the preparation of the department to include marketing You would talk about the preparation that you would do for the departments-again, pull it out and bullet it in this section Doing
19-27 months This section could include the information and training sessions The information session that you plan and the education programs would go in this section Study or Check
28-36 months This section could be the implementation and evaluation time frame You would bullet your implementation in the department and how you might evaluate based upon your SMART goal. Act

 Now you are ready to start section C which is the executive summary and is a separate document! 

Section C:

 Directions: Develop an executive summary as a separate document for key stakeholders and critical department leaders that includes the following: 

The executive summary is a separate document that is a standalone document (meaning that you do not attach it to your business plan) There are three parts to this executive summary and you must concisely speak to those areas. For the purposes of the task, it is in APA format, so you would double space the document and provide a title page, pagination and etc.) If you do not use any of the references alluded to in your paper within the summary, you do not have to add references. A well written executive summary is about one tenth the length of a business plan. Real business plans are long (some more than 200 pages). However, for this paper, you are looking about 2-3 pages maximum-so concise information is key to your success.

Section C1: 

Directions: A description of the components of VBP that are most pertinent to the organization

 In this section, you would discuss the three areas that you are developing and why they are important to the organization (see example below) (Narrative of A1)

Section C2: 

Directions: The preparation that the three departments chosen in part B1 will need for the implementation of VBP in the next three years 

In this section, you are going to discuss how you prepared the departments for beginning to implement the plan (see example below).

Section C3: 

Directions: A discussion of the education and training necessary to prepare the staff in the departments chosen in part B1 for implementation of VBP 

This section is going to be an overview of how you are going to train and educate the staff. This may be slightly different for each goal (see example below). Please do not copy and paste from your strategic plan to meet the requirements of this section.

Sample Executive Summary

  • A-1 hospital is an active participant in CMS reimbursement, and as such has emphasized the importance of embracing Value Based Purchasing throughout much of the facility. In order to continue to strive to be the best in healthcare delivery within the region, additional initiatives must be implemented.
  • Three domains within VBP have been chosen to build upon the organization’s already strong strategic plan. Communication with nursing staff is both a significant source for improved HCAHP scores as well as continuation of the delivery of seamless quality driven patient care.
  • The Emergency Room remains to be one of the singular sources for new patients to experience A-1 Hospital. It also serves as an excellent vehicle to promote the wellbeing of the community. Therefore, it is important to address outreach through active vaccination processes of patients who present to the Emergency Room for emergent care, and/or as a gateway for hospitalization.
  • Finally, in order to address morbidity and mortality rates of our patients, we are uniting both Physicians and our hospital staff to partner in the development of a state of the art clinical pathway for patients suffering from Congestive Heart Failure (CHF). With improved clinical pathways and directed, monitored care (both in and out patient care), it is our hope to increase both the quality and quantity of life for our CHF patients.
  • As we prepare our nursing departments for implementation, it is important to include all levels of administration as well as ‘boots on the ground’ nursing in this large endeavor. Utilizing concepts of complexity leadership to include all team members in this initiative is key to successfully developing new communication techniques. Nursing will also be making strides to improve communication; which will directly affect satisfaction and the quality of care received. This will improve overall outcomes and the patient experience. In order to be successful, education, training and reinforcement of best practices is foundational. The staff will engage in online web activities (training packets), monthly meetings providing information, support and data evaluation. The nursing units will engage in mock communication sessions that will help them engage even with the most difficult of patients, as well as HIPAA training. Using multiple learning methodologies will have a greater impact on staff to use the training and education most effective.
  • In our Physician based initiative, our Medical Director will serve as chair and lead the physician practice initiatives. In order to promote a multidisciplinary approach, nursing educators, clinical nurse specialists and case management professionals will participate as well. Using specialists as consultants, this team will create efficient order sets for the CHF clinical pathway in an effort to improve patient outcomes thus reducing mortality and the sequalae related to chronic morbidities. Once the pathway is completed, physicians with privileges at A-1 Hospital will attend all training educational programs in order to promote and utilize this ‘cutting edge’ clinical pathway. Once instituted, the CHF clinical pathway will have a direct effect for both hospitalized and primary care patients by stabilizing patients through this multidisciplinary approach and addressing out patient challenges. Educational updates will continually be provided to staff at A-1 Hospital as well as physicians who receive privileges to treat their patients here.
  • For our Emergency Room initiative, The Nursing Director, Emergency Room Manager, Chief Medical Officer and selected staff will work with a consultant from the Advisory Committee for Immunization Practices (ACIP) to address the Emergency Room initiative ‘Project Vaccination-No Flu Zone’. This team will lead education and training of immunization practices, ‘ineligible patients’ and talking points to improve the vaccination rates. Staff will participate in mock situations prior to implementation in order to gain understanding of the importance of this initiative. Marketing to the community regarding the importance of this will also be included in the training for all staff.