Costs and Benefits of Health Information Technology

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Costs and Benefits of Health Information Technology

Complete a Vila Health interactive simulation in which you will practice analyzing the costs and the benefits associated with having the newly acquired rural hospitals switch to the same health information system currently used at the main hospital. Then, develop a cost-benefit spreadsheet and write a 2-3 page executive summary of your findings and recommendations.

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Introduction

Note: The assessments in this course build upon the work you have completed in the previous assessments. Therefore, complete the assessments in the order in which they are presented.

Meeting current and future needs means that health care managers must be able to analyze the costs and benefits of implementing new health information systems or taking on new health informatics projects. Cost-benefit analysis is a model that will help managers communicate and justify their projects. It is important for managers to translate the investment of health information technology into a benefit that the organization notices and feels.

This assessment provides an opportunity for you to complete a cost-benefit analysis of a health information system and justify your recommendations for implementation, based on best practices.

Overview and Preparation

Note: Complete the assessments in this course in the order in which they are presented.

The following resources are required to complete the assessment:

Costs and Benefits of Health Information Technology

APA Style Paper Template [DOCX].
Use this template for your executive summary.
Cost-Benefit Analysis Spreadsheet [XLSX].
Use this spreadsheet for your analysis.
Vila Health: HIMS Cost Benefit Analysis.
This multimedia simulation will enable you to practice analyzing the short- and long-term costs and the benefits of implementing Vila Health’s existing health information system at one of the newly-acquired rural hospitals.

Leadership at Vila Health has asked for a cost-benefit analysis to address the pros and cons of having the newly acquired rural hospitals switch to the same health information system currently used by Vila Health.

Complete the Vila Health: HIMS Cost-Benefit Analysis interactive simulation. Gather information about the health information system being used by the main hospital. Speak with department heads to obtain their insights, and consider short- and long-term costs and benefits. You may also find it useful to review previous Vila Health simulations.

In addition, use the Capella University Library to explore topics relevant to currently available health information system technology and its costs and benefits.

Requirements
Conduct a cost-benefit analysis to determine the feasibility of the proposed system upgrade. Use the Cost-Benefit Analysis Spreadsheet for your analysis.
Write an executive summary of your findings, recommendations, and rationale for your recommendations.

Note: Remember that you can submit all—or a portion of—your draft executive summary to Smarthinking for feedback, before you submit the final version for this assessment. If you plan on using this free service, be mindful of the turnaround time of 24–48 hours for receiving feedback.

Document Format and Length

Format your executive summary using APA style.

Use the APA Style Paper Template [DOCX]. An APA Style Paper Tutorial [DOCX] is also provided to help you in writing and formatting your executive summary. Be sure to include:
A title page and references page. An abstract is not required.
Appropriate section headings.
Your executive summary should be 2–3 pages in length, not including the title page and references page.
Supporting Evidence

Cite at least two sources of credible scholarly or professional evidence to support your cost-benefit analysis.

Cost-Benefit Analysis

Note: The requirements outlined below correspond to the grading criteria in the scoring guide. Be sure that your cost-benefit analysis addresses each point, at a minimum. You may also want to read the HIS Cost-Benefit Analysis Scoring Guide to better understand how each criterion will be assessed.

Identify the components of the health information system.
Consider all system components that should be factored into a cost-benefit analysis.
Identify gaps between current health information technology and future needs.
What effect might forecasted future needs have on present system integration decisions?
Analyze the costs of implementing an upgraded system.
Identify all cost items that should be included in the analysis.
Consider short- and long-term costs.
Consider the relevant issues, objectives, and leadership decisions that should be factored into the analysis.
What additional information could improve the analysis?
Analyze the benefits of implementing an upgraded system.
Identify all cost items that should be included in the analysis.
Consider short- and long-term benefits, as well as the potential benefits to the organization, including patient care.
Consider the relevant issues, objectives, and leadership decisions that should be factored into the analysis.
What additional information could improve the analysis?
Analyze the costs and benefits of not implementing an upgraded system.
Consider the short- and long-term costs and potential benefits to the organization, including patient care.
Consider the relevant issues, objectives, and leadership decisions that should be factored into the analysis.
What additional information could improve the analysis?
Determine the impact of evolving business trends on system upgrade decisions.
What business trends have the potential to drive future health care informatics and IT needs?
How might these trends influence your cost-benefit analysis and project implementation recommendations?
What evidence do you have to support your assertions and conclusions?
Make implementation recommendations based on your cost-benefit analysis.
Justify your recommendations with well-reasoned rationale.
Write clearly and concisely, using correct grammar, mechanics, and APA formatting.
Express your main points and conclusions coherently.
Proofread your writing to minimize errors that could distract readers and make it more difficult for them to focus on the substance of your analysis.
Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

Competency 4: Forecast future organizational needs and/or applications of technology based on evolving business trends.
Identify gaps between current technology and future needs.
Determine the impact of evolving business trends on system upgrade decisions.
Competency 5: Analyze current and future system needs and cost-benefit factors to define requirements for system selection.
Identify the components of a health information system.
Analyze the costs of implementing an upgraded system.
Analyze the benefits of implementing an upgraded system.
Analyze the costs and benefits of not implementing an upgraded system.
Make implementation recommendations based on a cost-benefit analysis.
Competency 6: Communicate effectively with diverse audiences, in an appropriate form and style, consistent with applicable organizational, professional, and scholarly standards.
Write clearly and concisely, using correct grammar, mechanics, and APA formatting.

Print

Health Information System Cost-Benefit Analysis Scoring Guide
CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED
Identify the components of a health information system. Does not identify the components of a health information system. Overlooks components of a health information system important to an accurate cost-benefit analysis. Identifies the components of a health information system. Identifies the components of a health information system. Provides a complete and accurate inventory of all key components.
Identify gaps between current health information technology and future needs. Does not identify gaps between current health information technology and future needs. Identifies gaps between current health information technology and future needs that are unclear or unlikely. Identifies gaps between current health information technology and future needs. Identifies gaps between current health information technology and future needs. Makes astute inferences from a rational assessment of future needs.
Analyze the costs of implementing an upgraded system. Does not analyze the costs of implementing an upgraded system. Provides an incomplete cost analysis that overlooks key considerations. Analyzes the costs of implementing an upgraded system. Analyzes the short- and long-term costs of implementing an upgraded system. Provides a detailed and insightful analysis, and articulates uncertainties or knowledge gaps that could affect investment decisions.
Analyze the benefits of implementing an upgraded system. Does not analyze the benefits of implementing an upgraded system. Provides an incomplete benefit analysis that overlooks key considerations. Analyzes the benefits of implementing an upgraded system. Analyzes the short- and long-term benefits of implementing an upgraded system. Provides a detailed and insightful analysis, and articulates uncertainties or knowledge gaps that could affect investment decisions.
Analyze the costs and benefits of not implementing an upgraded system. Does not analyze the costs and benefits of not implementing an upgraded system. Analyzes some of the costs and benefits of not implementing an upgraded system, but omits significant items that should have been understood through study activities. Analyzes the costs and benefits of not implementing an upgraded system. Analyzes the costs and benefits of not implementing an upgraded system. Also identifies knowledge gaps, unknowns, missing information, unanswered questions, or areas of uncertainty, where further information could improve the analysis.
Determine the impact of evolving business trends on system upgrade decisions. Does not describe evolving business trends. Describes evolving business trends. Determines the impact of evolving business trends on system upgrade decisions. Determines the impact of evolving business trends on system upgrade decisions. Explicitly identifies logical implications and consequence based on an insightful interpretation and synthesis of business trends; draws well-reasoned, logical conclusions supported by relevant and credible evidence.
Make implementation recommendations based on a cost-benefit analysis. Does not make implementation recommendations based on a cost-benefit analysis. Makes implementation recommendations, but the links to the cost-benefit analysis are unclear, questionable, or not well-documented. Makes implementation recommendations based on a cost-benefit analysis. Makes implementation recommendations based on a cost-benefit analysis. Draws rational, fully-justified conclusions from an insightful assessment of long-and short-term project costs, benefits, and risks.
Write clearly and concisely, using correct grammar, mechanics, and APA formatting. Does not write clearly and concisely, using correct grammar, mechanics, and APA formatting. Writing is unclear and disorganized, includes errors in grammar and mechanics that inhibit effective communication, or contains incorrect or improperly formatted source citations and references. Writes clearly and concisely, using correct grammar, mechanics, and APA formatting. Writes clearly and concisely. Grammar, mechanics, and APA formatting are error-free.

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