Running head: FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH

INDUSTRY 1

FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY

(Name)

(Institution)
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 2

Feasibility Study of New Line of Service

Introduction

A hospital at home is an example of a new line of service in the medical industry that

has been introduced with an aim of enhancing efficiency in the sector health. This new line of

service has greatly changed the way medical care is administered to the sick elderly people

not only in the United States but also other economically advanced nations. The need to

ensure that quality of the medical treatment offered to the sick elderly people is maintained

has been one of the driving forces that have forced the entrepreneurs in the field of health to

consider this option. This option has mostly been motivated by the need to reduce the many

advantages that elderly patients usually go through when they are given medical care from

acute hospitals. Some of these challenges include: the lack of quality health care offered to

these elderly people. This is usually facilitated by the fact that they cannot speak and rise they

complains in case they feel unfairly handled.

The high cost of getting medical care from acute hospitals is another key factor that

has made some individuals to deviate to hospital at home facilities. A lot of time spent taking

the sick to the hospital is another key issue that has led to this wave of change. This has been

justified by the fact that some of the patients usually lose their lives on their way to the

hospitals due the accessibility of the hospitals from their homes. This factor makes the

hospital at home factor very practical and appealing. The fact that acutely ill older persons

usually undergo a lot of hardships when cared for in acute hospitals has been another key

factor that has greatly contributed to the change in the customer’s preference when it comes

to hospital at home.

Despite the fact that there have been many how have tried to introduce this idea into the

economy, there is need to carry out a feasibility test to analyse the nature of the idea, its
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 3

economic impact and whether it is viable or not. All these options are guided by the fact that

there have been many cases of individuals who have unsuccessfully tried to introduce the

idea into the health care industry. Thesis of this paper is: hospital at home that has passed

through the stage of feasibility for it to be incorporated initiated has more is beneficial to the

society when it comes to treatment of acutely ill elderly people.

Description of the Feasibility study

The feasibility of this study is guided by the fact that there have been many reports of

acutely ill older persons how have gone through hardships in their attempts to get medical

care from the acute care hospital. There is need to ensure that this new line of service will be

able to meet the specific needs that have led to its introduction in the health care industry.

Therefore, there has been needed to come up with an alternative that will be able to address

the issues that have been unable to be addressed by acute care hospitals. The main objective

of this feasibility test is to assess the clinical as well as medical feasibility and ability to

achieve desired goals when hospital care level is provided at the patient’s home in the form of

hospital at home. The design of the feasibility test will be prospective case series. Despite

having this design, the feasibility will also employ a bit of prospective quasi-experiment.

When it comes to the setting and the participants that will be used in carrying out the

feasibility test, the whole feasibility will be done a Medicare health system. The participants

will be elderly individuals aged above 65 of age. This elderly people used in the feasibility

test must be sick to an extent that they require to be admitted to an acute care hospital. These

elderly will also be diagnosed with exacerbation of chronic heart failure, community-acquired

pneumonia,cellulitis, exacerbation of chronic obstructive or pulmonary disease. The main

interventions that will be evident will be a hospital at home model of treatment that will be

substituted with an acute care hospital. There will be specific measurements that will taken
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 4

during the feasibility to determine the variability of the study as well as to understand how

variable this two modes of treatment are and which one is more viable and beneficial. The

measures will be carried out by the aid of clinical process measures, clinical complications,

functional status, the level of satisfaction with care as well as the costs of care.

Evaluating Feasibility of this New Line of Service

The evaluation of feasibility will be done to assess the final details about the research

on hospitals at home. The main reason of doing this is to ensure that there is all the

stakeholders are aware of the strengths and the weaknesses of the project which in this

hospital at home in this case. There will be three clear steps in carrying out the evaluation of

this study. This will be: the evaluation of the project based on the selected criteria. The

second step will be summing up the summary of the evaluation results and finally making of

recommendations(Fauntleroy, 2012). The first step of the evaluation that will have five

different subsections under which the hospital at home project will be analysed. This is done

to ensure that project is socially and economical legal and practical. The first part of the

evaluation will be the evaluation of technological and system requirements. This will be all

about ensuring that the data, sources, methods of data analysing, processing as well as

visualizing of data are correct and used accordingly. It also ensures that the software used in

making of the computing of the analysing of key issues such as the cost of facilitating the

hospital at home project is valid and up to the task. This helps in ensuring that the

conclusions made are correct and a true reflection of the reality.

The second section of the evaluation of this new line of service will be the evaluation of

the legal requirements that are necessary if the hospital at home idea has to be incorporated

into the society(Fauntleroy, 2012). This is evaluation is based on the fact that there is need to

abide by the laws of the land. Carrying out a legal evaluation of the feasibility ensures that
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 5

the project will be safe and valid to handle without having legal issues with the government.

The legal evaluation will also make its clear whether the findings of the feasibility study can

be published or not. The rules of the types of data or software to use in the presenting of the

results or the findings of the feasibility tests will also be stipulated in this particular category.

There is need to abide by the stipulations of copyright laws when carrying out the feasibility

study. It is under this section of evaluation that it becomes educates the individual carrying

out the feasibility on what to do and what not to do when it comes data presentation and

analysis methods.

The evaluation of operational requirements of this new line of service is another key

area of evaluation that determines the success of the project. This is the level of evaluation

that that one acquires skills and knowledge that are necessary for data acquisition. It is under

this evaluation level that one carries out a feasibility test on the operational requirements that

are needed to start of the projects (Leff, 2009). The hospital at home project requires

sustainable development for it to be fully implemented and developed. By the aid of the

participants that were mention in the description of the feasibility report, it is necessary to

ensure that the public participate in carrying out this part of feasibility evaluation. This is

because there is need to ensure that both the local community and the medical practitioners

are represented during the feasibility test. This will ensure that the views and information

given on the operational needs of the project are factual and representation of the reality on

the local level.

The economic evaluation is one of the key sections of the hospital at home feasibility

evaluation. This is because through it becomes easier to analyse and budget financially the

amount of finance need in handling of the whole project (Leff, 2009). The fact the financial

feasibility is also vital to the sponsors as well as those willing to fund the project in case it is

found viable. The costs of the many things that will be involved in the implementation of
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 6

project are vital to be evaluated to ensure that the expected cost of the project is calculated

and estimation made. Some of the key factors that are usually considered when doing an

evaluation of the feasibility of the hospital at home idea include the cost of software and data,

the cost of hiring personnel and finally the cost of . Some of the basis of economic includes

the cost of data and software that will be used in carrying out the feasibility test. The cost of

employing specific workforce that will be necessary to be evaluated. This will enable the

organisation to know how many individuals are needed to ensure that the new line of service

is effectively implemented.

Financial Analysis

In this section of the feasibility test, there will be financial analysis of the market to

ensure that the revenues, expenses as well as the total net income that will be derived from

derived from this new line of service in the medical industry. When it comes to funding of

this new line of service, the amount of funds needed is not very high (Feldstein, 2012). This

is facilitated by the fact that the initial cost of setting up a hospital at home is health facility

isnot very high. The funds will be raised from the contributions that will be raised by the

families of the elderly individuals who were suffering of acute illness and they needed to be

admitted in the acute hospitals. On top of this there will also be donations from well-wishers

to ensure that the project is fully funded for it to be able to meets its objective.

The use of grants and contributions in funding of the project is motivated by the fact

other means of funding the project will be very expensive. The private services will also be

very costly. This is because of the increased demand to repay the money back is what makes

it very tricky to pay back the money since the amount needed as interest is usually high. The

money bought awarded has so many disadvantages that make it very difficult to be used in

funding of this project. The is justified by the fact that this type of funding is full of
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 7

uncertainties in that it majorly depends on the third party hence not very suitable when

initiating a new line of service line hospital at home. The donations and collections from the

victims despite being a good method of raising funds it is also has challenges. One of them is

the fact the amount that can be collected is not very specific and no one can actually be able

to estimate the amount of the money that can be raised. There are usually high chances of

having budget deficit and at times budget surplus since the amount collected is not clear and

certain. The fixed cost of this project will be about $7000 a month. This is the money that

will be used in paying the monthly salaries of the nurses facilitating the whole process. The

fixed cost will also cater for the number of other employees helping in the management of the

project. The variable cost will depend on the number of elderly people treated. The annual

maintenance cost will be about $2000. These figures are guided by the fact that the services

will mostly be mobile in nature in that these facilities (Fauntleroy, 2012).

Strategic Analysis of New service line feasibility test

The public policy has a lot of contributions to make if at all this new line of service has

to be successful. The public policy on the public health is actually which will make this

project successful. It is actually the government policy to provide timely, quality and cost

effective medical care to the citizens without discrimination of biasness. This new line of

service is actually going to enable the government policy to be effected since the elderly

people are well taken care of. The effectiveness of the program will be achieved through

proper planning and having enough funds before initiation the whole project. This is because

through planning, there will be effective communication to ensure that the implementation of

the new line service of service in the medical industry.

The affordability and accessibility of the medical services will also increase the

efficiency in which the elderly people are treated hence saving them the poor conditions of
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 8

the acute hospitals they are usually admitted to. The main market priority will actually be

quality of the treatment given but there will also considerations relating to population since

the higher the population of the elderly sick people will mean more contributions. The target

population of the program is elderly people acute illness. The provision of services to elderly

people suffering of at home instead of acute hospitals that is usually in poor conditions. The

ability to reduce the cost of health services as well as increasing of the quality will also

increase the quality of the health services has also managed to provide quality of education

given (Tibaldi, et al.,2009).

Market Analysis

The normal acute hospitalspossess the main competition to this new idea. This is

mainly because this idea has already been the industry for long and most people are used to it

enhance it is difficult for to actually compete with them when it comes to demand for the

market. The demographics of the target market is made of both genders in that it is composed

who are aged 65 of age and above. The census data will be vital in deciding the areas to set

the project. The area with highest number of elderly people will be the most ideal. This

elderly people usually do not really like interact with many people so that makes this project

very ideal in that it is able to explore the available market gaps.

The current change in health measures and increases use of technological ways of

treating patient will actually justifies the current use of hospital at home as the new line of

service in the medical service(Shepperd et al., 2009). The most efficient health care model in

this particular case will be the out of pocket model. This health care model will be vital the

beginning since it is all about giving of cash as a person with no government support. This

model was developed by Beveridge and Bismarck it emphasises on the use of private sector

but part of the payments comes from the government. The use of private sector makes this
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 9

whole thing ideal and practical. After sometime, the national health insurance model will

also become necessary since this will reduce the cost of charges as well as it will also

guarantee continuity. The fact that this wills the first of its kind to be implemented means

there will no other source top benchmark from.

Operations Performance

The new service line will have great positive impact on the way the way health industry

operates. There is value for money in that the amount that is needed to initiate the project is

actually lower than the total value that is derived the project. The major incentives in this

project are the fact it will be able to slash the cost of treatment.

Inpatient facilities

Inpatient facilities account for the highest amount of spending on the US currently. The

cost has been rising over the years but this is not to mean that hospitals should not engage in

inpatient services (Dallet., 2013). They only need to know how to control costs and increase

revenues for the struggling sector. Outpatient costs need efficient and effective management

to thrive and create additional revenues. These services will add value to the customers by

ensuring that the company has all the necessary technology and expertise to deal with their

cases. The cost of advanced technology only attributes to 4.9% of total increase in average

costs per discharge (Fauntleroy, 2012). This shows that with the right kind of technology, we

can be in a position to serve our clients better. Devices and supplies defined as the items

needed for taking care of patients should be reduced to sustainable levels as they account for

the highest increase in annual average costs (Fauntleroy, 2012). This will be done by

collaborating with physicians, employers, staff and also suppliers to ensure that all efforts are

channeled to reduce these costs. The different payers include health plans, governments,

commissioners and employers. The volume of patients can be increased by creating room for
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 10

patients admitted from other hospitals. This can only be done with the right technology and

expertise too. The inpatient facilities will work closely with doctors in determining the

available capacity at a time and this information will be shared among readmitting hospitals

in real time to ensure close to full capacity all through.

Outpatient services

These services provide us with the opportunity to serve them at a cheaper cost yet with

the highest quality of care possible. Staff will be employed based on projected volume of

work done through appointments with available doctors (Shepperd et al., 2009). By

scheduling patients for appointments, the hospital is able to determine the amount of revenues

based on the appointments made in for example a month. This will ensure that patients are

always served according to their needs and as a result, they remain loyal to the medical

facility. The Affordable Care Act gives conditions that put consumers in charge of their

healthcare. They have conditions that ensure that everyone has medical access (Fauntleroy,

2012). Abiding by these and making sure that payers abide by them, we are bound to receive

benefits from the same. The reduced costs should not affect us as we plan to have the best

facilities to deal with all types of patients. This includes ensuring we have the right kind of

medicine to cater for patient needs. The challenges faced include an increasing elderly

population coupled with chronic diseases associated with old age. The number of medical

specialists is also wanting evidenced by the amount of time taken for appointments (Dall et

al., 2013). The opportunity lies in training more personnel to be specialists annually. This

might take some time but as the elderly increase, the hospital will also be having more

specialists to tend to their patients.

Outlook of Economic framework

FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 11

By ensuring that the hospital has the necessary technology and expertise, there is a high

chance for success in the future. Increasing the number of specialists annually will work to

reduce wait times for appointments creating room for serving more patients within a shorter

duration of time while at the same time increasing revenues. Economics is applied here in

conducting marginal analysis. This underlies all cases of optimization i.e. allocating resources

that are scarce to minimize production costs for hospital outputs (Feldstein, 2012). It also

looks at revenue maximization given constrained budgets. Supply and demand analysis can

also be used to project future demand and what can be done to deal with the projections

(Feldstein, 2012). In this case, the increase in chronic cases justifies increasing the number of

specialists in the future. We are using marginal analysis to determine our competencies and

areas that we need to improve on to ensure least costs possible. These strategies are key to

ensuring a sustainable medical facility. The adjustments that may be needed in the future in

case of unintended consequences include reducing the number of specialists educated

annually as they are a cost to the medical facility. This would only be done if the hospital has

more specialists than they need.

scheduled annual appointments

number of staff employed based on demand for specialist services

collaboration and the right medicine

increased revenues from outpatient services

FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 12

References:

Cheng, J., Montalto, M., &Leff, B. (2009).Hospital At Home. Clinics In Geriatric

Medicine, 25(1), Pp.79-91.

Cryer, L., Shannon, S. B., Van Amsterdam, M., &Leff, B. (2012). Costs For ‘Hospital At

Home’patients Were 19 Percent Lower, With Equal Or Better Outcomes Compared To

Similar Inpatients. Health Affairs, 31(6), 1237-1243.

Dall, T., Gallo, P., Chakrabarti, R., West, T., Semilla, A., & Storm, M. (2013). An Aging

Population And Growing Disease Burden Will Require Alarge And Specialized Health

Care Workforce By 2025. Health Affairs, 32(11), 2013-2020.

Http://Dx.Doi.Org/10.1377/Hlthaff.2013.0714

Fauntleroy, G. (2012). Rising Cost Of Inpatient Care Linked To Medical Devices And

Supplies | Center For Advancing Health. Cfah.Org. Retrieved 25 January 2016, From

Http://Www.Cfah.Org/Hbns/2012/Rising-Cost-Of-Inpatient-Care-Linked-To-Medical-

Devices-And-Supplies

Feldstein, P. (2012). Health Care Economics. Clifton Park, N.Y.: Delmar.

Leff, B. (2009). Defining And Disseminating The Hospital-At-Home Model. Canadian

Medical Association Journal, 180(2), Pp.156-157.

Leff, B., Burton, L., Mader, S. L., Naughton, B., Burl, J., Greenough, W. B., &Steinwachs,

D. (2009). Comparison Of Functional Outcomes Associated With Hospital At Home

Care And Traditional Acute Hospital Care. Journal Of The American Geriatrics

Society, 57(2), Pp.273-278.

FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 13

Shepperd, S., Doll, H., Angus, R. M., Clarke, M. J., Iliffe, S., Kalra, L., ...& Wilson, A. D.

(2009). Avoiding Hospital Admission Through Provision Of Hospital Care At Home: A

Systematic Review And Meta-Analysis Of Individual Patient Data. Canadian Medical

Association Journal, 180(2), 175-182.

Tibaldi, V., Isaia, G., Scarafiotti, C., Gariglio, F., Zanocchi, M., Bo, M., ...&Ricauda, N. A.

(2009). Hospital At Home For Elderly Patients With Acute Decompensation Of

Chronic Heart Failure: A Prospective Randomized Controlled Trial. Archives Of

Internal Medicine, 169(17), 1569-1575.