Deliverable 4 - Creating Alternative Revenue Streams

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Deliverable 4 - Creating Alternative Revenue Streams

Scenario

Health organizations continue to face challenges relative to costs and revenue. Changes in reimbursement structure is most often cited as one of the biggest challenges for providers. As a result, leaders are developing new approaches aimed at creating additional revenue streams.

Traditionally, hospitals have operated on profit margins that are often described as challenging. As a result of increased labor costs and a shift in payer mix, hospitals are being forced to do more with fewer resources. Consequently, hospitals are seeking new ways to improve their margins. Increasing patient volume is no longer e ective in improving margins given the focus on value-driven care. As the CEO of XYZ hospital, you are asked to make a presentation to the board regarding ways to identify new streams of revenue.

Your hospital operates in a low-income community with a significantly large population of residents enrolled in Medicare and Medicaid coverage. Critical issues such as length of stay (LOS) requirements and other financial threats are creating an urgent need for your organization to consider new revenue sources. After conducting research into the development of alternate revenue streams implemented by hospitals, you propose a new state of the art wellness center. Your task is to gain support for the wellness center.

Instructions

Create a PowerPoint presentation in which you highlight the following:

 Describe, in detail, the service o erings that you would include in your new wellness center.

 Discuss any potential barriers to implementing the wellness center.

 Explain how the new wellness center can potentially a ect overall costs.

 Explain how the new wellness center can potentially a ect overall quality of care.

 Describe the potential impact of the new wellness center on the underserved.

 Discuss the potential implications of the proposed revenue stream on payers, patients, and providers.

 Your presentation should include either speaker notes

 Research the concept of developing wellness centers, using credible sources to create your presentation.

1-2026D4CreatingAdditionalRevenueStreams-HSA6900.pptx

Creating Additional Revenue Streams

HSA 6900

Dr. Merle Point-Johnson

Supportive Reminder

The

Please remember that ALL coursework – submissions as well as resubmissions, must be placed into the drop box on or before Friday, March 20th .

Presentation Goals

To explore revenue challenges facing today’s healthcare organizations

To assess contemporary reimbursement structures

To discuss hospital profit margin and trends

Review requirements for Module Four’s Deliverable and grading criteria

Reiterate housekeeping issues

Motivation for Week Four

Competency

Develop sustainable operational processes that create opportunities to utilize best practices in patient care and functions.

Revenue

Revenue is the total income a company earns through its standard business activities, primarily from selling products or providing services. It is often called the "top line" on the income statement because it reflects gross earnings before any costs or expenses are subtracted.

Revenue Challenges

The revenue cycle for health organizations have become much more complex.

Changes in reimbursement structure, processes, regulations have created more challenges.

Scenario

Health organizations continue to face challenges relative to costs and revenue.

As a result, leaders are developing new approaches aimed at creating additional revenue streams.

Changes in reimbursement structure is most often cited as one of the biggest challenges for providers.

Examples of Changes in Reimbursement Structure

Shift from Fee-for-Service (FFS) to Value-Based Care (VBC): Traditionally, providers were paid based on the number of services rendered (FFS). Value-based models now reward providers for efficiency, quality, and patient outcomes, aiming to reduce unnecessary procedures and hospital readmissions.

Rising Labor Costs

Hospitals are facing rising costs as clinical staff shortages drive up wages, increase overtime, and force greater dependence on costly temporary or travel nurses.

Hospital Profit Margins

Traditionally, hospitals have operated on profit margins that are often described as challenging. As a result of increased labor costs and a shift in payer mix, hospitals are being forced to do more with fewer resources.

Consequently, hospitals are seeking new ways to improve their margins. Increasing patient volume is no longer effective in improving margins given the focus on value-driven care.

Hospital Profit Margins and Trends

2022–2023 Patient Collection Rates:

A study analyzing over 1,850 hospitals and 250,000 physicians nationwide found that hospitals collected approximately $5.2 billion on nearly $21 billion in charges for fully resolved medical claims from commercially insured patients. This indicates that hospitals received about 25% of the billed charges, suggesting a billing-to-payment ratio of approximately 4:1.

Opportunities

“Improvements in internet, video, and remote monitoring capabilities increasingly allow for the delivery of health care services in more cost-effective, patient-centered settings. Patients now can receive home-based acute care, primary care, and behavioral health services of equal or better quality compared with facility-based delivery, and at a lower cost” (Shrank, et. al, 2021).

What defines a Healthy Profit Margin?

Positive Margin: Indicates the hospital’s revenues exceed its expenses, suggesting financial stability and sustainability.

Negative Margin: Reflects that the hospital is spending more than it earns, potentially signaling the need for financial support or operational changes.

Profit Margins

A good net profit margin is 20 percent, according to the Corporate Finance Institute, while 10 percent is average and 5 percent is low.

As the CEO of XYZ hospital, you are asked to make a presentation to the board regarding ways to identify new streams of revenue.

Scenario

Your hospital operates in a low-income community with a significantly large population of residents enrolled in Medicare and Medicaid coverage.

Scenario

Critical issues such as length of stay (LOS) requirements and other financial threats are creating an urgent need for your organization to consider new revenue sources. After conducting research into the development of alternate revenue streams implemented by hospitals, you propose a new state of the art wellness center. Your task is to gain support for the wellness center.

Wellness Centers

Health and wellness centers often offer a broad range of services designed to support physical, mental, and emotional well‑being. Many include gym facilities, personal training, and group fitness classes like yoga, pilates, and aerobics to promote physical health and weight control.

Wellness Centers

Nutritional counseling, meal planning, weight‑management coaching, and dietary guidance help individuals make lasting lifestyle changes.

Wellness Centers

Mental and emotional support is provided through services like therapy, stress-reduction workshops, mindfulness or meditation classes, and life coaching to promote emotional resilience.

Instructions

Create a PowerPoint presentation addressing the following:

Describe, in detail, the service offerings that you would include in your new wellness center.

Remember, you are seeking to increase revenue

Discuss any potential barriers to implementing the wellness center.

What are possible challenges – promoting the service

Explain how the new wellness center can potentially affect overall costs.

You may consider a cost-benefits analysis.

Explain how the new wellness center can potentially affect overall quality of care.

What is the value to the patient?

Instructions

Describe the potential impact of the new wellness center on the underserved.

How can you help the underserved in the community?

Discuss the potential implications of the proposed revenue stream on payers, patients, and providers.

What are long/short term implications to stakeholders?

Additional Instructions

Your presentation should include either speaker notes or voiceover narration.

Research the concept of developing wellness centers, using credible sources to create your presentation.

Resources

For information about creating a PowerPoint presentation, please visit the following Rasmussen College Answers page.

01

For information about adding speaker notes, please visit the following Rasmussen College Answers page.

02

For information about creating a voiceover narration using Screencast-O-Matic, please visit the following Rasmussen College Answers page.

03

The Rubric

Clear

Clear and thorough description of the service offerings of the new wellness center, including multiple credible sources. 

Clear

Clear and thorough discussion of potential barriers to implementing the wellness center, including multiple credible sources.

Clear

Clear and thorough explanation of how the new wellness center can potentially affect overall costs, including multiple credible sources.

Clear

Clear and thorough explanation of how the new wellness center can potentially affect overall quality of care, including multiple credible sources.

The Rubric

Clear and thorough description of the potential impact of the new revenue stream on underserved, including multiple credible sources.

Comprehensive discussion of the implications of the proposed revenue stream on payers, patients, and providers, including multiple credible sources.

Presentation included comprehensive speaker notes or narration.

Questions

Please reach out!

Key Pointers and Reminders

You have up to 3 attempts per deliverable

If you receive an R on the same deliverable twice, it is highly recommended that you reach out to me BEFORE resubmitting or your 3rd attempt

Please do not email any submissions – all coursework must be sent through the assignment link and EACH submission is considered an attempt

Resubmission (required)

Score below 2 (Competency Designation)

Missing or Incorrect Information

Wrong Assignment

Prior to Resubmitting

The 4 R’s

Review

Research

Revise

Resubmit

Last assignment due date

There is still time, but.

don’t procrastinate

Progress – How many deliverables have you submitted?

Weeks One through Four

At least two deliverables would position you well in the course

What questions do you have about any of the deliverables?

What barriers have you faced in submitting?

Questions

Please remember that you are not alone! Please reach out for any assistance you need.

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