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DB 5 Tina Kandle COLLAPSE Top of Form Discussion Board Week 5 Define outpatient care. What are several key changes that have been instrumental in shifting the balance between inpatient and outpatient services? Why is it important for hospital administrators to regard outpatient care as a key component of their overall business strategy? “Outpatient services refers to any healthcare services that do not require an overnight stay in a healthcare institution†(Shi et al., 2019, p 155). It used to be that outpatient care was just primary care.
But with advances in medical technology, outpatient care now encompasses a variety of services. The main goal is to improve overall health by focusing on access to primary care and outpatient care while moving away from the high utilization of costly specialty and inpatient care (Fortney et al., 2005). According to Shi et al., reimbursements, medical technology, and utilization control have been key players in the shift from inpatient to outpatient utilization (2019, p, 157). Outpatient treatments cost less, technology provides less invasive procedures and minimization of hospital stays are due to utilization control American policymakers and stakeholders are beginning to focus on transforming the U.S. healthcare system into a more value-seeking system (Sorenson et al., 2013).
The ACA has invested in comparative effectiveness research to promote value in Medicare payment and delivery systems. “The proverbs of Solomon, son of David, king of Israel: To know wisdom and instruction, to understand words of insight, to receive instruction in wise dealing, in righteousness, justice, and equity; to give prudence to the simple, knowledge and discretion to the youth-Let the wise hear and increase in learning, and the one who understands obtain guidance,…â€(OpenBible, English Standard Version, 2001, Proverbs 1:1-33). Hospitals administrators should pay attention to outpatient services and primary care because these services are more cost-effective. Studies show that states with more primary care providers have higher quality care and lower costs (Baicker, 2004).
A study of approximately 70,000 patients who participated in the Medical Expenditure Panel Survey shows that patients with primary care receive high-value care (Levine et al., 2019). Primary care in conjunction with outpatient services increases patient experience, patient health and reduces medical waste, thereby reducing medical spending. References: Baicker K, Chandra A. (2004) Medicare spending, the physician workforce, and beneficiaries’ quality of care. Health Aff (Millwood). W. doi:10.1377/hlthaff.W4.184 Fortney, J.
C., Steffick, D. E., Burgess, J. F., Maciejewski, M. L., & Petersen, L. A. (2005).
Are primary care services a substitute or complement for specialty and inpatient services? Health Services Research, 40(5p1), . Levine, D. M., Landon, B. E., & Linder, J.
A. (2019). Quality and experience of outpatient care in the united states for adults with or without primary care. JAMA Internal Medicine, 179(3), . Open Bible. (2001). English Standard Version.
Shi, L., Singh, D. A., & Shi, L. (2019). Essentials of the U.S. health care system (Fifth; 5 ed.). Jones & Bartlett Learning. Sorenson, C., Drummond, M., & Burns, L.
R. (2013). Evolving reimbursement and pricing policies for devices in Europe and the United States should encourage greater value. Health Affairs, 32(4), 788-96. Bottom of Form Outpatient care Discussion Board Week 5 Lynn Bulloch COLLAPSE Top of Form Did you know class that alot of what is now managed in outpatient care, used to require hospitalization. Did you know that patients on our hospital floors today used to be in ICU and that the patients in our ICUs today would not be here a few years ago....this is the progression of the acuity of care we have seen with healthcare's evolution.
And this trend is expected to continue as we continue to see medical advances and our population live longer. Some key perspectives that you should take away from this study, while these are not the only 'right' answers, What are several key changes that have been instrumental in shifting the balance between inpatient and outpatient services? The number 1 driver--the money, patient care goes where the money goes. When payment changes, the care follows. Population health initiatives also are driving care into the home.
As we look at how we help populations of patients manage chronic diseases, it all starts with patient and self-care in their home. Why is it important for hospital administrators to regard outpatient care as a key component of their overall business strategy? Because it is an important part of the healthcare continuum. Increasingly under new payment provisions, hospitals are not just paid for the care they render while the patient is in the hospital, but they are paid for patient outcomes, regardless of where care is rendered- home, under home health, physician office, outpatient setting, or in the hospital. All are part of the continuum of care for population health. Bottom of Form
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Understanding Outpatient Care and Its Impact on Healthcare Strategy
Outpatient care refers to medical services provided to patients who do not require an overnight stay in a healthcare facility. This includes a variety of services from preventive care and routine visits to complex treatments and surgeries that can be performed without extended hospitalization (Shi et al., 2019). The shift from inpatient to outpatient care has been instrumental in the evolution of healthcare, with significant implications for hospital administration and the overall healthcare system.
Key Changes Influencing the Shift to Outpatient Care
Several key changes have facilitated the transition from inpatient to outpatient services, emphasizing the importance of outpatient care in modern healthcare delivery.
1. Advances in Medical Technology: Technological advancements have led to less invasive procedures, which can be performed safely in outpatient settings. Techniques such as laparoscopic surgery and advancements in anesthetics have reduced the need for prolonged recovery periods, thus enabling patients to return home the same day after their procedure (Fortney et al., 2005). This has allowed hospitals to allocate resources more effectively while also enhancing patient satisfaction.
2. Cost-Effectiveness: Outpatient services generally incur lower costs compared to inpatient care. Hospitals are incentivized to keep expenditures down while improving quality, leading to more efficient healthcare delivery systems. Studies show that states with higher ratios of primary care physicians to the population typically experience lower healthcare costs and improved patient outcomes, underscoring the financial advantage of promoting outpatient services (Baicker & Chandra, 2004).
3. Policy and Reimbursement Changes: Recent healthcare policies have shifted the focus toward value-based care, particularly under Medicaid and Medicare programs. The Affordable Care Act (ACA) has fueled changes in how providers and hospitals are reimbursed, emphasizing the need for quality outcomes rather than volume of services rendered. With reimbursement increasingly tied to patient outcomes, outpatient care has gained prominence as a cost-effective alternative (Sorenson et al., 2013).
4. Population Health Initiatives: As healthcare providers begin to emphasize preventative care and chronic disease management, outpatient services are ideal for long-term health monitoring and support. Initiatives aimed at managing population health—such as diabetes education and hypertension management—often begin in outpatient settings, which can facilitate better patient engagement and self-management (Lynn Bulloch, DB 5).
5. Consumer Demand for Convenience: As patients become more informed and engaged in their healthcare decisions, there is a rising expectation for convenience and accessibility. Outpatient care offers flexible scheduling and localized services that align well with consumer preferences, resulting in higher patient engagement and satisfaction rates (Levine et al., 2019).
Importance of Outpatient Care in Business Strategy for Hospitals
For hospital administrators, recognizing the importance of outpatient care as a key component of their overall business strategy is critical for several reasons:
1. Integration of Services: Outpatient services represent a continuum of care that bridges primary, specialty, and inpatient services. Administrators must design integrated care models that blend these elements to improve patient outcomes and promote effective resource allocation across service types (Lynn Bulloch, DB 5).
2. Strategic Financial Planning: Given that reimbursement systems are evolving to focus on outcomes, administrators must ensure that outpatient services are a priority to remain financially viable. With appropriate investments in outpatient initiatives, hospitals can optimize opportunities for better reimbursement contracts (Sorenson et al., 2013).
3. Meeting Regulatory and Accreditation Demands: As regulatory bodies evolve and healthcare systems place more emphasis on quality outcomes, hospitals that effectively implement robust outpatient services will be better positioned to meet these requirements. They can demonstrate quality care through various metrics that enhance their profile for accreditation and funding opportunities (Shi et al., 2019).
4. Enhancing Patient Experience: Outpatient care’s increased focus on convenience and accessibility directly affects patient experience. By improving the outpatient service offerings, hospitals can increase patient loyalty, attract new patients, and improve retention rates, ultimately leading to a healthier bottom line (Fortney et al., 2005).
5. Community Health Improvement: By reinforcing outpatient services, hospitals can play a significant role in enhancing community health, addressing social determinants of health, and reducing health disparities. This commitment to outpatient care can also strengthen community ties and enhance hospitals' reputation and role within the community (Levine et al., 2019).
Conclusion
The transition from inpatient to outpatient care is reshaping the landscape of healthcare delivery. Advances in technology, cost-effectiveness, policy changes, population health initiatives, and consumer demands play pivotal roles in this transformation. For hospital administrators, recognizing outpatient care as integral to their overall strategy is essential—from ensuring financial sustainability to enhancing patient care quality and community health outcomes. Emphasizing this shift can ultimately lead to a more efficient, patient-centered healthcare system.
References
1. Baicker, K., & Chandra, A. (2004). Medicare spending, the physician workforce, and beneficiaries’ quality of care. Health Affairs, W4-184. doi:10.1377/hlthaff.W4.184
2. Fortney, J. C., Steffick, D. E., Burgess, J. F., Maciejewski, M. L., & Petersen, L. A. (2005). Are primary care services a substitute or complement for specialty and inpatient services? Health Services Research, 40(5), 1804-1824.
3. Levine, D. M., Landon, B. E., & Linder, J. A. (2019). Quality and experience of outpatient care in the United States for adults with or without primary care. JAMA Internal Medicine, 179(3), 401-410.
4. Open Bible. (2001). English Standard Version.
5. Shi, L., Singh, D. A., & Shi, L. (2019). Essentials of the U.S. Health Care System (5th ed.). Jones & Bartlett Learning.
6. Sorenson, C., Drummond, M., & Burns, L. R. (2013). Evolving reimbursement and pricing policies for devices in Europe and the United States should encourage greater value. Health Affairs, 32(4), 788-796.
7. Institute of Medicine. (2001). Crossing the Quality Chasm: A New Health System for the 21st Century. Washington, DC: National Academy Press.
8. Berwick, D. M., & Nolan, T. W. (1998). The Triple Aim: Care, Health, and Cost. Health Affairs, 27(3), 761-770.
9. Bodenheimer, T., & Pham, H. H. (2010). Primary Care: Current Problems and Proposed Solutions. Health Affairs, 29(5), 799-805.
10. McCarthy, D., & Klein, S. (2010). The U.S. Health Care System: An International Perspective. The Commonwealth Fund.