BHA-FPX4108 Assessment 1 Instructions: Vila Health: Pacemaker Inventory

BHA-FPX4108 Assessment 1 Instructions: Vila Health: Pacemaker Inventory

Introduction

Health care operations is a complex topic, encompassing many aspects including (but not limited to) service locations, personnel, policy, leadership, finance, strategy, and quality. While the industry is generally viewed as a service industry, its systems are faced with complex operational challenges including supply chain, strategy, quality and project management, and service delivery. Given the changing landscape from a health reform and financial perspective, health care organizations must focus on improving their operations and improving efficiencies to remain competitive.

A component of the health care delivery process is the procurement, stocking, and dispensing of supplies. Within this process, opportunities exist to add value, reduce waste, and create standardization throughout the organization (Kros & Brown, 2013). Effective management of health care operations creates value for all stakeholders.

One way to potentially create value in operations is through inventory management. Whether you realize it or not, you are most likely familiar with the concept of inventory. For example, when you visit the grocery store perhaps they are out of your favorite ice cream, or, before you left home, maybe you took stock of your cupboards to determine what items you need to pick up on the grocery store trip. Both of these are everyday examples of the concept of inventory.

In health care, inventory management is vital for many reasons, including regulatory compliance and investment protection. When we think about the inventory of a health care organization, we must take into consideration items ranging from pots and pans to medical devices and surgical instruments (Kros & Brown, 2013).

Finance and accounting principles in health care operations and supply chain management are key concepts to understand, at least at a foundational level. At a minimum, health care professionals should be familiar with the basic components of financial statements and financial ratios utilized by health care organizations, as well as concepts related to the value of money. Over the years, the health care industry has been subject to several changes in reimbursement methodologies. Each methodology was implemented with the intent of addressing the concerns facing the industry at the time (fraud, quality, utilization, et cetera).

Current methodologies regulate the payment amount or payment rate that organizations will receive in return for treating each patient. Changes to these payment methods have had major financial implications for health care organizations (Kros & Brown, 2013). To remain fiscally responsible, health care professionals must streamline operations to ensure costs are managed, productivity is maximized, and resources are optimized (Kros & Brown, 2013). Outside of payroll and benefits, supplies and materials are close contenders for health care organizations’ highest expenses.

Regardless of whether you work in a clinical or non-clinical unit, it is imperative to understand how to read and understand the organization’s financial statements. In addition to financial statements, each department operates off of an annual budget. These budgets are established as financial guidelines for the department’s operations and always contain line items for materials and supplies.

Reference

Kros, J. F., & Brown, E. C. (2013). Health care operations and supply chain management: Operations, planning, and control. San Francisco, CA: Jossey-Bass.