Heatlh care finance
Complete a comparative data analysis to determine the technology company that will provide the most efficient and effective services for the following items:
• Hardware and software
• Regular and ongoing maintenance
• Training and education
Scenario:
Both J. P. Technologies, Inc. and IT U.S.A., Inc. have provided a 1-year package that includes the hardware and software, maintenance and training, and education to assist the Pacific Ocean Hospital in its transition from ICD-9 to ICD-10.
A detailed proposal listing all items included in the package has been provided to the project lead. Both companies' proposals include a 2% increase for maintenance, training, and education at year 2 and a 1% decrease at year 3. A standard fee of $500,000 for hardware and software has been negotiated for year 2 and a 50% decrease at year 3 to equal $250,000 for both companies. A decision will be made based upon the projected costs savings at the end of year 3. Choose which option is best, and explain your decision.
Based upon the data provided within the spreadsheet, complete the following, and provide a 50-100 word summary detailing your findings.
• Perform the common sizing technique (convert the dollars to percentages).
• Perform a trend analysis for years 1-3. This information will be used to provide a response to the Discussion Board.
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J. P. Technologies, Inc.
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IT U.S.A., Inc.
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Year 1 End
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%
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Year 2 End
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%
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Year 3 End
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%
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|
Year 1 End
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%
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Year 2 End
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%
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Year 3 End
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%
|
|
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|
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Hardware and software
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$4,586,700
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|
$500,000
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|
$250,000
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|
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$3,786,500
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$500,000
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|
$250,000
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|
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Regular and ongoing maintenance
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$2,600,000
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|
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$0
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$2,439,687
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$0
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Training and Education
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$1,387,567
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|
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$0
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$1,935,000
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$0
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|
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|
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Total
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$8,574,267
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|
|
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$250,000
|
|
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$8,161,187
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|
|
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$250,000
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There will be many technological changes that result from the upcoming transition of ICD-9 to ICD-10.
• As the manager of the HIM department at Pacific Ocean Hospital and assigned lead in the transition of ICD-9 to ICD-10, what will your role be in ensuring your company's transition is efficient and effective?
Following implementation of ICD-10 software, you identify that some of the ICD-9 codes still remain in the system; coders and clinicians are unable to provide the proper codes on the encounter forms.
• As the HIM manager, how will you approach this issue?