The Triple Aim: Care, Health and Cost, Essay Example

The breakeven analysis will address three questions:  1.  Using the historical data as a guide construct a pro forma (forecasted) profit and loss statement for the clinic’s average day for all of 2012 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit? 2. How many additional daily visits must be generated to break even? Is there more than one break-even point? 3. What is your final recommendation concerning the future of the walk-in clinic? These questions will be answered from the perspective of Berwick et al. (2008) and Kongsvedt (2012).

Budgeting

Budgeting is the activity of transforming the operational design into a financial plan that can be attained in a definite period of time. Budgeting facilitates the health care organizations to assess their financial production. As a strategic objective, the budget can define the resources that are required in order to attain particular goals. Budgets can be different in their characteristics and perspectives. At the most fundamental point, a budget has the capacity of being statistical, while forecasting workloads and volume assumptions. Other types of budgets include a larger group of variable. Expenses and revenues are considered in an operating budget (Berwick et al., 2008).

The increasing expense of health care remains as one of the country´s most significant long term issues. It is perceived that increased transparency will asset in slowing the rise of health care services. Many proponents of health care financial transparency believe that if the client is aware of the expense of the health care services, they have more of a potential of looking for more cost avoidant health care services (Kongsvedt, 2012).

1. The clinic is projected to break even in July/ Aug. 2012. The profitable period will begin in Jan. / Feb. 2012.
2. The numbers of additional visits that are required daily in order to break even are two. Considering that all of the expenses are consistent, there is only one breakeven point.
3. The final recommendation with regards to the Better Health Clinic is to continue to endeavor while not assuming any additional expenses. The initial profitable period should begin in Jan. / Feb. 2013.

References

Berwick, D. M., Nolan, T. W., and Whittington, J. (2008). The triple aim: Care, health and cost. Health Affairs, (3): 759- 769.

Kongsvedt, P. R. (2012). Managed health care. Burlington, MA: Jones and Bartlett Learning.