week 7

 USW1.6313.202230 - PBHL-8450-1/DDHA-8450-1- PROJECT & RESOURCE MGMT-2021-WINTER-QTR- TERM-WKS-1-THRU-11-(11/29/2021-02/13/2022)-PT27

Assignment - Week 7 Metushela Nicolas on Sun, Jan 16 2022, 9:42 PM

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Citations (2/2)

1 Another student's paper

2 Another student's paper

Running head: PATIENT PORTAL 1

PATIENT PORTAL 3

Metushela Nicolas

Walden University

1 Project & Resource Management DDHA-8450

Dr. Sheryl Richard

January 10, 2021

Introduction

Physicians and health care professionals of champion healthcare are willing to embrace a patient portal technology. Nonetheless, the healthcare administrators have not considered the feasibility of the project. 2 Financial risk can be described as the probability that stakeholders will lose, primarily when investing in an organization that has not met its breakeven point in business. Examples of financial risks include credit risk and money risk. Default risk involves cash borrowers that fail to repay their loans, which causes the stakeholders' income to be lower. 2 There is also a loss in principal and interest and increased collection charges. This paper will evaluate patient portal technology decisions' financial and risk consequences and calculate the breakeven point. Lastly, the report will provide investment recommendations to present or future health care managers.

2 Assessment of Financial and Risk Consequences

Market volatility is linked to most forms of financial risks. Liquidity risk includes securities and properties, which can neither be bought nor sold promptly to reduce losses in an unpredictable market. Unpredictable value variations of shares of stock can be referred to as equity risk. Liermann, Viets, and Radermacher (2021) found that core securities vary in price due to unpredictable asset-backed stakes. This condition is called asset-backed risk. There are various methods I would use to measure the financial and risk concerns related to patient portal technology resolution. These methods assess the degree of risk and its possible costs. The results of this assessment will help to counter the projected consequences.

The first method I would use is the qualitative and subjective risk. This method involves projecting the likelihood of a risk occurrence and evaluating the counter solutions. The method technique uses subject matter experts and previous records. Repeated trends and procedures are most valued when using qualitative risk.

Another risk assessment technique includes quantitative risk analysis. This technique centers on numeric approaches and the incorporation of repeated actions to get estimates. For example, the Monte Carlo simulation method assesses the cost risks of the technology decision.

Quantitative risk study usually relates to the principles of qualitative investigations. Deciding on one method against the other relies on the requirements of a project and the security level of project stakeholders. The project manager should discuss the projected risks, consequences, degree, and importance or priority (Liermann et al., 2021). Lastly, the project team can design effective responses to these risks. This information can be represented in a table format to enable the team members to reevaluate the risk processes at even intervals.

Breakeven Revenue per patient in co-payments $20

Fixed Cost $50,000

Variable cost per patient $5

Contribution margin per patient $20 - $5 = $15

Breakeven number of patients 50,000/15 = 3334

The best plan to assume a patient portal with a successful investment is if the number of patients is more remarkable than three thousand, three hundred and thirty-three. For the enterprise to profit, the organization needs to attract a breakeven number of patients. Understanding this will help the healthcare facility set prices for products and services and formulate an enterprise budget (Bigio and d'Avernas, 2021). Responsibility needs to be practiced so that the budget meets the company's needs without undermining the employees or patients. The breakeven number of patients will also help evaluate the organization's crucial profit drivers.

Investment Recommendations

2 Patient portal technology impacts a health care facility and its workers. According to health care facility forms, the financial and risk consequences are different—for example, no accessibility or insufficient resources to run the project to its completion. Hence, there is a need to include many stakeholders in inpatient portal technology. Some of the risks associated can be relevant in formulating tactical and practical decisions.

The technological decision should provide substantial health care coverage through equal resource allocation. As a health care manager, I will set a high budget during the allocation decision since a patient cannot be depended on for much financial incentive to fulfill their demand of technological systems. Not all funds will be directed towards the patient portal technology, but the resources can also be channeled to other programs, for example, telemedicine and Project ECHO. These will improve the health care system also.

Accountability is necessary for stakeholders to prevent misappropriation of funds and resources. Corruption is also a significant deal-breaker for investors. Hence, organizations should do away with such unethical behaviors (Liermann et al., 2021). The output level per worker also needs to be increased to realize productivity development. For example, when the wage of a staff member is not equivalent to the level of output of that person, then the breakeven point of the technological decision will be hard to achieve.

As a health care manager, I will ensure that my facts are backed up by clear and concise data for the benefit of stakeholders. The data provided should be objective and subject to public scrutiny. The decision on investment and the cost of investment will be left to the investor. Investors also need to invest in a business that can be understood to prevent losses. As an administrator, I would also not compromise on the quality of the health care facility. According to Bigio and d'Avernas (2021), the investment made should be long-term, and equity holdings need to be minimized. Lastly, there is a difference between the price of an investment and the value of the investment. For example, an investor can invest at a high price, but since the stock market is volatile, the asset's value is rendered worthless.

Resources should be allocated to business that has an intrinsic value. For example, when the inherent value of a health care system is below the market value, an administrator should remain with the stock up to the point of mean reversion. A mean reversion can be described as the meeting point between market and intrinsic prices. As an administrator, I would focus on remaining with our healthcare sphere of competence. The health care facility should also be flexible to adapt to the modern market. Creative accounting, the current ratio, can be used during allocation decisions to make a health care facility look better than it is. Lastly, as a health care administrator, I should be ready to bring change and focus on the value of investors. I would re-buy stock at a premium and alter administrative decisions, for example, by increasing the value of investors.

Conclusion

2 There are various types of financial risks, such as credit and financial risk. Ways in which financial risk consequences can be assessed include quantitative and qualitative analyses. The use of breakeven points in health care facilities is what it takes to make a profit and set prices for their products and services. Various recommendations can help in investment decisions, such as the need to consider the intrinsic values of businesses rather than the price values before making an investment decision.

Reference

Bigio, S., & d'Avernas, A. (2021). Financial risk capacity. American Economic Journal: Macroeconomics, 13(4), 142-81.

Liermann, V., Viets, N., & Radermacher, D. (2021). Breaking New Grounds in Non- Financial Risk Management. In The Digital Journey of Banking and Insurance, Volume I (pp. 161-182). Palgrave Macmillan, Cham.