2 PAGE FINANCE PAPER

Assignment: Supply of Primary Care Workforce

Note:  The Instructor will post the document for this Assignment by Day 1 of Week 4.

To deliver health care services, an ACO needs to create a competent workforce that can provide health care to the patients that are in the ACO. Some integrated ACO entities already have employed physicians and mid-level providers that receive salaries from the organization, whereas other non-integrated ACO entities need to invest in external relationships with independent physicians and other providers. Since ACOs do not have managerial control over non-employed providers, additional controls and incentives may be necessary to ensure that efficiency is maximized. ACOs also need to consider the number and mix of specialists (e.g., family practice vs internal medicine) and mid-level providers (e.g., physician assistants and nurse practitioners) in delivering primary care services that can promote value. Maximizing value requires appropriate workforce decisions on supply and incentives to encourage providers to minimize costs. For this Assignment, examine the Week 4 Assignment document and consider the efficiency in the supply of health services.

To prepare for this Assignment:

Review the scenario and Week 4 Assignment document provided to you by the Instructor. Based on the financial data, conduct a financial projection (revenues, expenses, and profit) that analyzes the efficiency of the supply of health services.

The Assignment:

In a 2- page Word document that includes tables and/or calculations, make recommendations on the following: 1) number of physicians and nurse practitioners needed; 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address the challenges of supplier-induced demand and how to ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Explain the rationale behind your recommendations,including the impact made by your financial calculations.

learning resources

Required Readings

Getzen, T. (2015). Health economics for the healthcare administrator (Laureate custom edition). New York: Wiley.

· Chapter 6, “Physicians” (pp. 124–142)

· Chapter 7, “Medical Education, Organization, and Business Practices” (pp. 146–165)

Zelman, W. N., McCue, M. J., Glick, N. D., & Thomas, M. S. (2014). Financial management of health care organizations: An introduction to fundamental tools, concepts and applications (4th ed.). San Francisco, CA: Jossey-Bass.

· Chapter 13, “Provider Payment Systems” (pp. 579–616)

Iglehart, J. (2014). Meeting the demand for primary care: Nurse practitioners answer the call (Expert Voices in Health Care Policy Report). Washington, D.C.: National Institute for Health Care Management. Retrieved from http://www.nihcm.org/pdf/Meeting-the-demand-for-primary-care-nurse-practitioners-answer-the-call-John-Iglehart-Expert-Voices-10-2014.pdf

Khullar, D., Chokshi, D., Kocher, R., Reddy, A., Basu, K., Conway, H., & Rajkumar, R. (2015). Behavioral economics and physician compensation—Promise and challenges. New England Journal of Medicine, 372(24), 2281–2283. Retrieved from http://www.nejm.org/doi/full/10.1056/NEJMp1502312

McClellan, M. (2015). Accountable care organizations and evidence-based payment reform. Journal of the American Medical Association, 313(21), 2128–2130.

Note: Retrieved from the Walden Library databases.

Document: Week 4 Supply of Workforce Template (Excel document)