HIMA99: Healthcare Administration Capstone

HIMA99: Healthcare Administration Capstone
Lesson 1: Organizational Performance
 Analyze the organization’s performance measures and outcomes.
Introduction
Understanding and analyzing an organization’s performance is vital to establish standards, goals, and
objectives. Reviewing organizational performance is also a way to compare desired results to actual
performance, based on set measures and outcomes that determine performance. The results of organizational
performance are used to develop strategies to meet unmet goals and continue thriving for goals that are met.
In healthcare organizations, key performance measures focus on quality patient care, perspectives, and
treatment outcomes. This lesson will provide a review of concepts related to organizational performance and
importance in healthcare organizations. You will also have a opportunity to review your capstone project in
relation to organizational performance, as well as various tools and resources to support project assignments.
Organizational Performance
Organizational performance measures the actual results of goals and objectives, against the intended results of
goals and objectives. Organizations set goals and objectives with measurable indicators and outcomes. For
example, setting a goal to achieve a 90% rate (outcome measure) for patient satisfaction. An outcome
measure is the result of the test or collection of information.
Healthcare organizations frequently use the balanced scorecard methodology to track and measure
performance outcomes. Healthcare also tend to focus on outcomes related to services offered, staffing, and
costs and reimbursement. Some examples of performance outcomes may include:

Analyzing Performance
Analyzing performance starts with comparing actual results with desired results. Based on the review,
performance improvement initiatives, or ways to improve performance is explored. The Balanced Scorecard
Model (BSM) can be adopted as a systemic performance method to identify performance issues to improve
organizational performance. The modern balanced scorecard model helps to transform organizational
processes through performance measurements and continuously quality improvement. Balanced scorecard
models are fundamental in their ability to validate and substantiate information based on measurement.
Moreover, it can be used to identify potential improvements through balanced scorecard results; to specifically
pinpoint what should be improved and how it can be improved. This method can also detect if resolutions are
ineffective or unsuccessful. A “balanced” view of the organization can also indicate if a culture of safety is
present. For instance, staff perspectives on transparency or increase in reported medication errors.
Financial Performance
Financial performance is one of the most critical indicators of organizational performance, and healthcare
organizations are not exempt. Healthcare costs have continued to increase, compounded by increasing
insurance costs and payment challenges. Cost and spending (foundation for financial performance), are two
concepts in which all healthcare managers must be able to understand. Today the cost of healthcare has
significantly increased. The Kaiser Foundation reports that spending will reach another estimated milestone,
increasing to $4.3 trillion dollars. https://www.kff.org/
Costs for healthcare insurance continue to rise as well, while some healthcare interventions or outcomes are
less successful. Efficiency is now a very important factor in our healthcare delivery system due to increased
costs and weakened outcomes.
Current Issues Affecting Healthcare Delivery and Financial Performance:

Highlight: U.S. News & World Report Best Children’s Hospitals Rankings 2017–18 Methodology:
https://www.hopkinsmedicine.org/news/articles/us-news–world-report-best-childrens-hospitals-rankings-
201718-methodology
Web Resources

https://sunnybrook.ca/scorecard/
Capstone Project
Norwood Health System (NHS) is a group of medical facilities that provide community
services to a metro-city area. The system consists of a hospital, several clinics, and urgent
care centers. The facilities have become a staple in the community by providing access to
healthcare for the underserved and uninsured.
Norwood Health System first offered services in 1992 to address medical needs in the local community. The
goal was to minimize the need to seek multiple physicians and provide comprehensive healthcare. It was also
the goal to provide services beyond the traditional operating hours of primary care and other doctor offices;
hence the opening of urgent care centers. NHS focuses on total wellness that incorporates an integrative
approach to optimize quality patient care.
The mission of Norwood Health System is to promote community health. They offer a collaborative approach
to enhance healthy lifestyles, with cost effective, quality care. The vision is to be the most trusted multispecialty organization in the regional area by consistently providing excellent customer service and high quality
medical care.
In the past five years, there has been a rapid growth of urgent care needs for Norwood patients, fueled by
patient demand for convenient, affordable care. Patients are looking for accessible, affordable healthcare.
Because NHS was one of the first in the area, there is an advantage to having an established customer base.
However, there are some current challenges that both reflect the community and national healthcare trends.

Performance Measures and Outcomes (2014 – 2017)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Y2014 Y2015 Y2016 Y2017
Revenue
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Y2014 Y2015 Y2016 Y2017
Collection Accounts
LOOKING AHEAD! Assignment 1
1. Strategic Planning
1.1 Performance Measures and Outcomes
1.2 SWOT Analysis
Healthcare Strategy Solutions:
https://www.soyringconsulting.com/strategicplanning?keyword_session_id=vt~adwords%7Ckt~%2Bhospital%20%2Bstrategic%20%2Bplan
ning%7Cmt~b%7Cta~179012380961&_vsrefdom=wordstream&gclid=CjwKCAiA0ajgBRA4Eiw
A9gFOR-hR9nJu-QGX03lt5gtWBvzD260K7fTg3P_NJNlbVENDhFyzkWPalxoCNEkQAvD_BwE
Sample SWOT Diagrams:
https://www.google.com/search?q=sample+healthcare+SWOT&rlz=1C1CH
BF_enUS820US820&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiR76-
Vuo7fAhWJm-AKHXrjCVQQ_AUIDigB&biw=1280&bih=610
Performance Measurement for Hospitals:
https://www.jointcommission.org/accreditation/performance_meas
urementoryx.aspx
Sample Patient-Reported Outcomes:
https://www.healthcatalyst.com/insights/top-7-healthcare-outcomemeasures
31%
26%
40%
3%
Insurance Payments – 2014
Government-Sponsored Commercial
Uninsured Unknown
0%
20%
40%
60%
80%
100%
Y2014 Y2015 Y2016 Y2017
Patient Satisfaction Rate
0 10 20 30 40 50 60
Y2014
Y2015
Y2016
Y2017
Medication Errors
45%
38%
12%
5%
Insurance Payments – 2017