Briefing Memo

Instructions

You are the Chief Operating Officer of a large healthcare system, composed of acute, long-term care, and community-based organizations in addition to long-term care managed care plans.

Don't use plagiarized sources. Get Your Custom Essay on
Briefing Memo
Just from $13/Page
Order Essay

Given your current studies in health policy and management, the Chief Executive Officer of this large healthcare system has requested that you prepare a high-level briefing for the system’s Board of Directors in which you describe:(a) factors that have contributed to dramatic growth in health care spending over the past 50 years; and(b) how health care payment and delivery models are transforming to promote greater accountability for cost and quality in the health care system.

Please conclude your memo with your analysis of the most promising approaches for constraining cost growth while maintaining or improving quality, as well as the limitations or open questions that accompany new reimbursement and delivery models that are intended to promote “accountable care.”The memo must be four pages in length. Please include references to course readings as well as any relevant outside sources that support your analysis. Citations and a references page (not included in page length) are required.**You must use a recognizable memorandum format for this exercise—and it is recommended that subject areas be segmented using sub headers. Include your institution’s logo on the first page of the memo (fictitious). Be creative.

 

Sample Answer

 

INTERNAL MEMO

 

Ref: MNGT/123/06/2019

To: Board of Directors

From: Chief Operation Officer

Date: 15th November 2019

Subject: BRIEFING

 

First and foremost, let me take this opportunity to commend the board for the remarkable stewardship and exemplary leadership skills. It is this prowess that has enabled this firm to soar great heights in the healthcare sector. Notably, there has been a surge in demand for healthcare services; consequently, healthcare spending over the last fifty years. For better strategy formulation, accurate insight into the contributors to this increased healthcare spending is mandatory. This memo briefs about the factors that promoted the dramatic upsurge in healthcare spending over the past five decades. In addition, the role of payment and delivery models in the promotion of accountability and quality is explored herein.

  1. Causes of Increased Healthcare Spending

As stated earlier, healthcare costs in the United States have grown drastically over the past five decades. According to a study in the Journal of American Medical Association, medical expenditure rose by almost a trillion dollars in the last two decades alone. The individual spending in 2017 was about $11,000. This increased spending is attributed to the following factors;

Growth of Aging Population

As the aging population increases, the cost of healthcare also rises due to the urgent medical attention needed by the aging population. The costs of treating patients over sixty-five years is expensive compared to that of younger patients. According to a report by Global Aging, there has been a change in the cause of death, from infections to chronic non-communicable diseases such as cancer, hypertension, arthritis, and heart failure. This has translated into increased life expectancy. The cost of treating the above infections among the aging population is considerably high. Consequently, the aging population accounts for 12% of the increase in healthcare spending.

Increase in Chronic Diseases

The incidences of chronic illnesses have been on the rise in the last five decades. They account for 85% of the total healthcare spending. These illnesses are difficult and expensive to treat. According to the Journal of American Medical Association (JAMA), diabetes is the most significant contributor to increased health spending over the last fifty years. Other illnesses responsible for the upsurge in healthcare costs are high blood pressure, high cholesterol, urinary infections, depression, and osteoarthritis. Caring for these patients takes a fourth of the total medical budget. This proves the burdening financial implication of chronic illnesses.

Rising Health Assurance Premiums

The increased health assurance premiums lie at the center of concerns about increasing healthcare costs. There has been a substantial rise in family healthcare coverage premiums. This change has been instigated by lifestyle change and government policies on healthcare. Government initiatives such as Medicaid and Medicare have catapulted the demand for medical services, consequently leading to higher costs.

Increased Out-of-Pocket Costs

Currently, the out-of-pocket amounts paid by patients seeking healthcare services has been the highest in the last five decades. The adoption of high-deductible health plans as a way of curbing increased demand is a significant contributor to high healthcare costs (Mullahy, 2019).

Lack of Transparency and Inefficiency in the Existing Healthcare System

Currently, there is no elaborate criterion for determining the cost of healthcare services. This leaves a loophole that healthcare providers exploit to overcharge patients for services. According to the Wall Street Journal, hospitals are charging exorbitant fees for relatively cheaper operations. This is a significant contributor to the rising costs of healthcare.

  1. Payment and Delivery Models in Promoting Accountability and Quality

It is worthwhile to note that the enactment of the Affordable Care Act has spurred the development of robust delivery and payment methods (Kominski, 2014). These have reduced the cost and improved the quality of healthcare services. Noteworthy models include the Accountable Care Organizations and Patient Centered Medical Homes. The models have enhanced accountability and quality by transforming the healthcare system in the following ways;

Altering the Organizational Structure

The payment and delivery models have played a fundamental role in changing the structure of several health organizations. Healthcare providers have changed their organizational models by merging or affiliating with other physician practices or changing ownership to other hospitals. The cause of this change of ownership or mergers has been necessitated by the intensive capital requirement to implement specific payment models (Canady, 2015). Other factors include boosting the ability to negotiate contracts and achieving a sense of security in numbers. This has, in turn, improved the quality and accountability in healthcare services provided.

Altering Practice Operations

The introduction of alternative payment model has resulted in the development of competent management teams that incorporate notable roles for the involved health professionals. Shared savings and medical home programs have enabled the employment of care managers. These managers major in patient management and reducing pressure on physicians. The alternative payment model has also changed the relationship between primary care and subspecialist physicians as opposed to the initial models that focused on primary care for performance evaluation and patient attribution. This, in line, has augmented competency and improved quality in the sector.

Enhancing  Data Collection and Analysis

The recent payment models have placed importance in data and subsequent analysis. This has led to massive investments in data management systems through the use of electronic health records, which have facilitated the management and analysis of entered data. The overall effect of this is the improvement of claims query generation and billing, thereby improving accountability.

Conclusion

Having noted the upsurge healthcare spending, there is a need to curb this growth ( without compromising on the quality) before it goes out of hand. As a major stakeholder in the country’s healthcare system, active involvement in the process is obligatory. The most auspicious approaches in limiting this growth are;

Reducing the Use of Healthcare Services

This is only achievable through advocating for a change in lifestyle because the strategy is majorly preventive. It is attainable by advocating for healthy habits such as exercising and taking unprocessed foods. This will eliminate unnecessary physician visits.

Reducing Reimbursement for Services

This strategy calls for negotiation between insurance companies, hospitals, other healthcare providers, and the government for lower fees. Alternatively, the government may dictate fees payable for each service.

The introduction of payment and delivery models has significantly improved the healthcare sector. However, healthcare providers should evaluate their readiness to adopt the models and select the best model by addressing these questions;

  • What is our capacity for change?
  • What is our financial capability?
  • Will the change affect our mission?
  • What is the effect of this to relevant stakeholders(both internal and external)?

 

Signed,

 

Chief Operation Officer

Cc;

Chief Executive Officer

 

References

Canady, V. (2015). Value-based payment models to improve care, lower costs gaining traction. Mental Health Weekly25(9), 1-7. doi: 10.1002/mhw.30093

Global Aging. (2019). Retrieved 15 November 2019, from https://www.nia.nih.gov/research/dbsr/global-aging

Kominski, G. (2014). Changing the U.S. health care system. San Francisco, Calif: Jossey-Bass.

Mullahy, J. (2019). Health and evidence in health economics. Health Economics28(10), 1163-1165. doi: 10.1002/hec.3926

Trends in health care spending. (2019). Retrieved 15 November 2019, from https://www.ama-assn.org/about/research/trends-health-care-spending

What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Premium Quality

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

On-Time Delivery

Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.

24/7 Customer Support

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.

image

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

image

Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

Free Features $66FREE

  • Most Qualified Writer $10FREE
  • Plagiarism Scan Report $10FREE
  • Unlimited Revisions $08FREE
  • Paper Formatting $05FREE
  • Cover Page $05FREE
  • Referencing & Bibliography $10FREE
  • Dedicated User Area $08FREE
  • 24/7 Order Tracking $05FREE
  • Periodic Email Alerts $05FREE
image

Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

  • On-time Delivery
  • 24/7 Order Tracking
  • Access to Authentic Sources
Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.

image

Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.

0+

Happy Clients

0+

Words Written This Week

0+

Ongoing Orders

0%

Customer Satisfaction Rate
image

Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

See How We Helped 9000+ Students Achieve Success

image

We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

  • Clear elicitation of your requirements.
  • Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

  • Proactive analysis of your writing.
  • Active communication to understand requirements.
image
image

We Handle Your Writing Tasks to Ensure Excellent Grades

We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.

  • Thorough research and analysis for every order.
  • Deliverance of reliable writing service to improve your grades.
Place an Order Start Chat Now
image