Learning Goal: I’m working on a health & medical question and need an explanation and answer to help me learn.
Health care operations is a complex topic, encompassing many aspects including (but not limited to) service locations, personnel, policy, leadership, finance, strategy, and quality. While the industry is generally viewed as a service industry, its systems are faced with complex operational challenges including supply chain, strategy, quality and project management, and service delivery. Given the changing landscape from a health reform and financial perspective, health care organizations must focus on improving their operations and improving efficiencies to remain competitive. A component of the health care delivery process is the procurement, stocking, and dispensing of supplies. Within this process, opportunities exist to add value, reduce waste, and create standardization throughout the organization (Kros & Brown, 2013). Effective management of health care operations creates value for all stakeholders.One way to potentially create value in operations is through inventory management. Whether you realize it or not, you are most likely familiar with the concept of inventory. For example, when you visit the grocery store perhaps they are out of your favorite ice cream, or, before you left home, maybe you took stock of your cupboards to determine what items you need to pick up on the grocery store trip. Both of these are everyday examples of the concept of inventory. In health care, inventory management is vital for many reasons, including regulatory compliance and investment protection. When we think about the inventory of a health care organization, we must take into consideration items ranging from pots and pans to medical devices and surgical instruments (Kros & Brown, 2013).Finance and accounting principles in health care operations and supply chain management are key concepts to understand, at least at a foundational level. At a minimum, health care professionals should be familiar with the basic components of financial statements and financial ratios utilized by health care organizations, as well as concepts related to the value of money. Over the years, the health care industry has been subject to several changes in reimbursement methodologies. Each methodology was implemented with the intent of addressing the concerns facing the industry at the time (fraud, quality, utilization, et cetera). Current methodologies regulate the payment amount or payment rate that organizations will receive in return for treating each patient. Changes to these payment methods have had major financial implications for health care organizations (Kros & Brown, 2013). To remain fiscally responsible, health care professionals must streamline operations to ensure costs are managed, productivity is maximized, and resources are optimized (Kros & Brown, 2013). Outside of payroll and benefits, supplies and materials are close contenders for health care organizations’ highest expenses. Regardless of whether you work in a clinical or non-clinical unit, it is imperative to understand how to read and understand the organization’s financial statements. In addition to financial statements, each department operates off of an annual budget. These budgets are established as financial guidelines for the department’s operations and always contain line items for materials and supplies.
Kros, J. F., & Brown, E. C. (2013). Health care operations and supply chain management: Operations, planning, and control. San Francisco, CA: Jossey-Bass.
By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:
This assessment is based on the Vila Health: Pacemaker Inventory media simulation, which is linked in the Vila Health: Pacemaker Inventory section of Assessment 1. Go to that section to complete the scenario at this time. You will use the information you gather in this scenario, in which you assume the role of an inventory analyst, to provide context and information necessary for the assessment.If you have questions about or would like to review tips on using PowerPoint, the following resources may be useful as you prepare to complete this assessment:
Based on the media simulation you completed, one of the directors has asked you to examine the the ordering, stocking, and use of pacemakers at the Peta King Heart Institute at St. Anthony Medical Center. In addition to your inventory investigation, you have been encouraged to research additional topics, such as inventory management, inventory control, inventory ordering systems, economic order quantity (EOQ) calculations, and inventory stocking techniques. As you research, consider industries outside of health care, as techniques utilized in other industries may apply. After you have concluded your investigation and research, you have been asked to prepare a PowerPoint for the director to help them communicate with other stakeholders the basics of inventory control, the importance of having inventory control strategies, and the current state of the Peta King Heart Institute’s pacemaker inventory.Your PowerPoint needs to address the following criteria. (Note: The questions under each criterion are there to help you think through each.)
You might want to (but do not have to) organize your presentation using the following outline:
Write clearly and logically, with correct use of spelling, grammar, punctuation, and mechanics.
Write following APA style for in-text citations, quotes, and references.
Your presentation should consist of:
|Explain inventory control.||Does not explain inventory control||Explains a few aspects of inventory control but does not provide a full explanation.||Explains inventory control.||Explains what inventory control is and supports the points discussed with specific reference to evidence or best practices.|
|Describe options for inventory ordering.||Does not identify an option for inventory ordering.||Identifies an option for inventory ordering.||Describes options for inventory ordering.||Describes options for inventory ordering and provides pros and cons for the proposed options.|
|Analyze leaders’ responsibilities in addressing the identified inventory recommendations.||Does not list leaders’ responsibilities in addressing the identified inventory recommendations.||Lists leaders’ responsibilities in addressing the identified inventory recommendations.||Analyzes leaders’ responsibilities in addressing the identified inventory recommendations.||Analyzes leaders’ responsibilities in addressing the identified inventory recommendations and includes the consequences for the lack of leadership in addressing inventory options.|
|Analyze the implications of having inventory control.||Does not identify the implications of having inventory control.||Identifies the implications of having inventory control.||Analyzes the implications of having inventory control.||Analyzes the implications of having inventory control and includes the effect on the organization lacking it.|
|Present findings based upon review of the EOQ and organizational data.||Does not present findings based upon review of the EOQ and organizational data.||Presents some findings based upon review of the EOQ and organizational data, but the connection is not clear.||Presents findings based upon review of the EOQ and organizational data.||Presents findings based upon review of the EOQ and organizational data and strengthens findings with support of the literature.|
|Write following APA style for in-text citations, quotes, and references.||Writes without following APA style.||Writes following APA style for in-text citations, quotes, and references, but there are lapses in style use.||Writes following APA style for in-text citations, quotes, and references.||Writes following APA style for in-text citations, quotes, and references without errors and uses current resources.|
|Write clearly and logically, with correct use of spelling, grammar, punctuation, and mechanics.||Writes with many errors, making text difficult to follow; errors involve spelling, grammar, punctuation, and mechanics.||Writes with few errors, making text difficult to follow at times; errors involve spelling, grammar, punctuation, and mechanics.||Writes clearly and logically, with correct use of spelling, grammar, punctuation, and mechanics.||Writes clearly and logically, using evidence to support a central idea, with correct use of spelling, grammar, punctuation, and mechanics; the presentation contains supporting examples for the main points.|
As the health care industry continues to evolve, organizations routinely seek innovative ways to remain competitive, improve efficiency and quality, and meet consumer demands in a fiscally responsible manner.One way to do that is to keep a careful eye on the organization’s inventory.
You are an inventory analyst at St. Anthony Medical Center. You monitor the hospital’s inventory purchase, use, and quality for the Peta King Heart Institute at St. Anthony Medical Center. It’s part of your role to communicate information regarding inventory that is no longer meeting the needs of the organization, not being utilized per projections, is costing the organization, or is routinely out of stock or in short supply.
Subject: Pacemaker Inventory??Good morning. I’m not sure what else you’ve got on your plate today, but I need some numbers on our pacemaker inventory. Can you do an EOQ calculation and get back to me with some recommendations for the next fiscal year?
You check with a couple of people to find out what you need to know in order to do the EOQ calculation.
Prior annual use: 2,500Budgeted use for next fiscal year: 2,750
You stop by Kenneth Dunn’s desk to talk about supplying pacemakers for the hospital.Hi, Ken, can you tell me how many pacemakers we’ve used so far this fiscal year?Kenneth Dunn: Let me check. Okay, we’re 11 months into the fiscal year and we’ve used…2,109.And how many do we order at one time?Kenneth Dunn: 400.Okay, now, I know we pay $35 for each pacemaker, but I don’t know what our holding cost is.Kenneth Dunn: It’s 5 percent. So on $35, that’s $1.75 each.Okay. And the setup and ordering costs?Kenneth Dunn: Setup is $300, ordering is $175.
Your research prompted Kenneth Dunn to alert Bernadette Holt about pacemaker demand for the next year.
Subject: Pacemaker Inventory??Hello Bernadette and team,I just talked with our inventory analyst, and we talked about how many pacemakers we’ve gone through. It got me to thinking… I think by this time last year, we had gone through way more than 2,100, which is why we raised the demand to 2,500. But based on this year’s patterns, the demand might be more like 2,300.Then again, the last month of the fiscal year was our heaviest month for pacemakers last year. And I don’t know what surgeries have been scheduled already; those wouldn’t be part of my numbers yet. So it’s possible it could go as high as 2,600.
Anyway, I just wanted to let you know. I’ve attached an EOQ Calculation Worksheet in case it’s useful.––Ken
Use the EOQ Calculation Worksheet to determine the total annual cost and EOQ. You should see different results for each if demand rises, falls, or stays the same.
Please download the EOQ Worksheet.
Question 1: Why is it important to understand organizational demand when ordering inventory?Your response:Feedback: Some potential reasons are:
Question 2: What are some of the key pieces of information needed to determine how much of a given product to order, and why are they important?Your response:Feedback: Some potential key pieces of information are:
Question 3: What are some of the benefits of utilizing a software system for managing, tracking, and calculating the appropriate amount of a given product to order?Your response:Feedback: Some potential benefits are:
Question 4: Ineffective leadership over supply chain and inventory management can have negative impacts on an organization. How might an organization be negatively impacted by ineffective leadership?Your response:Feedback: Some potential negative impacts of ineffective supply chain leader ship are:
Question 5: How can proper inventory control benefit an organization?Your response:Feedback: Some potential benefits are:
Question 6: Why do organizations and economic professionals calculate Economic Order Quantities (EOQs)?Your response:Feedback: The purpose of calculating EOQs is that the help to determine the order quantity which is ideal to order for inventory. it is designed to minimize ordering and carrying costs.Question 7: What are holding costs?Your response:Feedback: Holding costs represent one component of total inventory costs. These costs are associated with holding inventory that remains unsold, cost of storage space, labor and insurance.Question 8: Why might an organization seek to utilize consignment as an alternative stocking method?Your response:Feedback: Some potential reasons are:
Conclusion: Activity complete!How could patient-provider collaboration improve the health and wellness of the individuals and groups you saw in this activity?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more