Principles of Healthcare Business and Financial Management

Value-based purchasing allows employers and insurers to measure and reward excellence in health care delivery. This is a demand side strategy that acts as a motivator for health care providers to improve their delivery systems by taking price, efficiency, and quality into consideration. The current organization has begun the process of embracing value-based purchasing as a step towards improving quality and patient safety. The Long-Term Care Setting is working extremely hard to align the physicians and the facility in delivering quality evidence-based care. The clinic is extensively involved with other clinicians in ensuring that it engages in measurable progress. Three years ago, the Long-Term Care setting established an initiative to provide efficient and quality care to all patients at all times. Additionally, the healthcare facility is developing a close working relationship with patient advocates to maximize health care quality and patient safety.

The three departments that will have the most impact on Value Based Pricing during its implementation are Finance Department, Quality Department, and Human Resources Department. Finance, Quality, and Human Resources department must work in collaboration to help the health care organization further the implementation of value based purchasing. Currently, these three departments rarely interact except when they want to discuss budget issues. The organization will effectively implement value based purchasing if financial matters, health care quality issues, and issues related to employee performance are aligned (Osborne and Reeves, 2010). Although every department has a separate role to play, it is anticipated that patients will best be served by bringing different ideas together to establish a strong financial-quality working relationship. When these departments work in collaboration, the health care setting will be able to provide financial quality reports, identify best practices that are related to quality, and design educational initiatives for employees to support its goal towards quality (Osborne and Reeves, 2010).

The roles of Finance, Quality, and Human Resources Departments are very important for the implementation of value-based purchasing in the organization. The current health care challenge faced by the organization can be solved through two different approaches. The first approach is focused on improvement of employee health by ensuring that all determinants of health status are improved. According to National Business Coalition on Health (2011), organizations can enhance competitiveness, improve productivity, and lower health care costs by maintaining good health and preventing illness for all workers. Additionally, value based purchasing has the ability to change the manner in which employers offer health benefits to their workers in order to improve productivity. Effective implementation of value based purchasing therefore requires active response from Human Resources Department (National Business Coalition on Health, 2011).

The current organization is characterized by inefficiencies and wide variations in cost and quality. Furthermore, the organization largely focuses on treatment of illness with little focus on health improvement and management. The Quality Department will work very hard to ensure that heath care delivery in the organization is largely focused on health improvement and in assisting patients to receive the desired outcome (National Business Coalition on Health, 2011). Additionally, the reimbursement incentives currently used in the organization contribute greatly to the observed flaws in health care delivery. There is therefore great need for the current incentives to be changed as a way of making transformation in healthcare delivery system. It is the responsibility of the Finance Department to purchase the right incentives in order to ensure effective implementation of value based purchasing in the organization (National Business Coalition on Health, 2011).

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