Quality Improvement Plan: Justifying Cost
Now that you\'ve outlined an action plan around the area that needs improvement in your organization, you will need to determine the feasibility of the plan, which includes justifying the resources based on the cost-benefit analysis.
Write a 700-word Cost-Benefit Analysis using the improvement plan you decided to adopt from the Week 2 Quality Improvement: Action Plan assignment WHICH WERE
MEDICATION ERRORS AND DELAY IN PATIENT DISCHARGE
Include the following areas in your analysis:
Determine the cost of the improvement plan.
What areas will require capital cost and how much?
What areas will require labor cost and how much?
What areas will require on-going cost and how much?
What are the non-monetary costs, such as reputation and health?
Determine the benefits of the improvement plan.
What is the dollar value on time saved?
What is the value saved?
What is the input saved?
Address in your summary if doing nothing is an alternative as well.
Make a recommendation and a plan of action based on the results.
Cite and reference all sources.
For the cost benefit assignment, it is important that you assign a cost for the
components of your quality improvement project. Everything has a cost. For
example, what is the cost of providing one hour of training or education to all
of the nurses on the unit? You can use a breakdown of how you arrived at the
cost example $35.00 an hour x 30 nurses= $1058.00. In a cost benefit analysis,
cost must drive the discussion and in the end you will be weighing the cost
(estimated) against the benefits of the intervention. The stockholders are
interested in the bottom line. For example, for a falls prevention program, you
can calculate the cost of education for nurses and then calculate how much
money you will save from decreased falls. This can be expressed in increased
reimbursements. Please let me know if you have any questions.
Here is an exemplar to use only as a guide (yours may look quite different):
Cost of Improvement:
Tuition reimbursement/scholarship = $535,500 per year
Cash rewards = $25,200 per year
Total cost of improvement = $560,700 per year
Benefit of Improvement:
Direct recruitment cost = $800,00 per year
Training/orientation = $864,000 per year
Preceptor pay = $48,000 per year
Total savings of improvement = $1,712,000 per year
Overall savings $1,151,300 per year