Intended Investment of medical device: modern infusion pump to facilitate daily practice
1. A Business case- Report Style
² Executive Summary
The main goal of this paper is to provide a business plan and feasibility studies on the benefits of the intended investment on medical device. This medical device is the is the modern infusion pump to be able to facilitate daily activities and practice on health care organisation and providers. In this analysis, the SMART objectives are considered as well as the strategic objectives for the investment. The paper discussed the feasibility of the investment through different analysis like stakeholder analysis, benefits analysis and financial feasibility. In addition, this paper also discussed the options that can be considered to find means and ways to fund the new investment. By and large, it can be said that with the help of different organisations, public, private or even non-government organisations, the investment of this modern device can be feasible.
² New investment Title/Introduction/Background
A business analysis and investigation is an significant and valuable tool to enable the health care organisations to evaluate the viability of starting new investment to provide better health care services. It gives significant and valuable information required to make the critical decision of whether to go forward with the new investment or not. The main objective of this business analysis is to ensure that the health care institution is on the right track. The aim of this analysis is to assure that the health care organisation will be able to identify whether or not to proceed with a new investment and to identify any significant and valuable risks associated with the new investment. The feasibility of these new health care investments can be ascertained in line with the technical aspects, economic aspects or both (Shaw, 2001).
In establishing a new investment, one of the most significant and valuable business aspects which should be considered is the financial capabilities of the organisation. In this particular report, being able to recognise the needs of health care institutions to meet the needs and improve the hospital environment by facilitating more their daily practice, the health care authorities is trying to do it by considering different options. Primarily, the main goal of this report is to provide an analysis on the plan of the health care providers to invest in medical device such as modern infusion pumps. This paper will also consider the benefits of this investment, the funding approach to be considered, and provide strategic objectives.
2 New investment Objectives
The main goal of this new investment is to determine which approach will be useful for the Health care organisation in investing on a new medical device; which is the modern infusion pumps. It can be considered that the objective of this investment is SMART. Accordingly, SMART means that the objective should be specific, measurable, achievable, realistic, and timed. Herein, it can be noted that objectives set by the Health care organisation varies and in this case the focus is to invest on a new medical device, which is the modern infusion pumps. In addition, it is also specific since it the objective is only addresses the facilitation of the daily practice of the health care providers to assure better health care service.. The objective of this program can also be considered as measurable since it is easy to understand and comprehend. This objective is planned to implement for 5 years time.
3 Health Care Authorities
Health Care organisations aim on managing the health of the patients and other individuals. The organisation is the one which provides health care services and assures that hospitals and healthcare organisations adheres to the quality and standards in securing the health status of HK people. In addition, they are also responsible for knowing what should be given values in specific hospital and provide effective new investment to solve this issue.
With the aim of the healthcare organisation to provide better health care services among their patients, the authorities are trying to invest for a new medical device which is the modern infusion pump to be able to facilitate daily practice. Changes has been considered on different organisations with the aim of the management to provide better and quality services and to adhere to their responsibilities and obligations in giving quality health care services. The concern of changes in the investment of new medical device is to facilitate the health care provider’s practice. Accordingly, the modern infusion pumps are designed not only to pump fluid but also to be utilised as a medium in making the clinicians and health care providers work simpler and to help in securing accuracy. The modern infusion pumps that can be considered may include those with the dose/rate calculation as well as transcription type data entry errors. There are also other infusion pumps which provide drug labels that enable to reduce titration errors. Even if these tools are aiming to eliminate errors, there are still some errors that can occur if the calculation features are not simple to use and do not display the computation, drug label and even the infusion information accurately.
4 Stakeholder Analyses
This part will provide stakeholder analysis to know which among the stakeholders have a high involvement, interest, influence, significance, and impact in the new investment.
Table 1
Stakeholder Analysis
Stakeholder
Involvement in Issue
Interest In Issue
Influence. Power on outcome
Significance to SH
Impact on SH
Direct
Patients
The patients are the main target of the new investment
Medium-High
Low
Very Significant and valuable
Medium-high
Government/Department of Health
They provide financial support for the patients
High
High
Very Significant and valuable
High
HK Hospital Authority
Coordinate with the government and hospital needs.
High
High
Very Significant and valuable
High
Indirect
Non-Government Health Organisation
The non-government organisation can coordinate with HA to help patients in terms of financial aspects
Medium-High
Medium High
Significant and valuable
High
Family of the patients
The family are the one who will shoulder the financial needs of the patients in case the government decided to stop supporting the patients.
High
Low
Significant and valuable
Low
Interested/Affected
Educational institution
Can help in disseminating information regarding the significance of the modern infusion pumps in health care provision
Low
Low
Significant and valuable
Low
In this proposed hospital new investments the potential stakeholders include the hospital administration, community health organisations, HK government, the patients, funders and HK government health regulators as well as the policy makers. It can be said that different stakeholders have varying amounts and kinds of power and those with the greatest influence are able to shape a strategy from a number of decisions (Shafrits & Ott, 2001). The stakeholders are given the outmost authority in any organisational setting, like in this case the investment for new medical device which is the modern infusion pumps. Their power and significance is beginning to gain slighter advantage as compared to an organisation’s management team. Stakeholders also provide a diverse influence to both kinds of organisations and they guide the people in the organisation so that the goals will be met.
In this regard, the stakeholders for this proposed new investment can be considered as significant for the decision making of pursuing the new approach considered by health care organisation to invest on a new medical device; which is the modern infusion pumps in the hospitals and clinics. According to Johnston & Clark (2001), product and service design involves translating stakeholder needs into service requirements, formulating quality goals and cost target, documenting specifications, refining existing products and services, and developing new ones as well. With these, stakeholder analysis, the hospital management can be able to change the new approach considered by the health care providers to invest on a new medical device, which is the modern infusion pumps to meet the needs and demands of the stakeholders and most especially the patients.
5 Identifying Approach and Financial Appraisal
5.1 Approach or Option Identification
This part of the new investment will provide the financial appraisal for the options provided. This new investment will consider three options.
Table 2
Options and Benefit analysis
Option A
Do nothing
Option B
Encourage health care authorities to consider the investment for modern infusion pumps.
Option C
Encourage health care providers to participate in the initiation of the project.
The first option for this new investment is to do nothing. This means that the health care organisations will choose to ignore the issue and continue to provide health care service in risks. The second option is to encourage health care authorities to consider the investment for modern infusion pumps to facilitate daily practice and activities and reduce risks because of inaccuracy and the last option is to encourage the health care providers to participate in the initiation of the project.
5.2 Financial Appraisal
There are different means and ways and approaches on identifying the feasibility of the implementation for the new project or investment on a new medical device, which is the modern infusion pumps in one of the health care organisation. In this regard, this financial analysis would consider the Cost-benefit analysis. Cost-Benefit framework needs a well-informed respondent or group to give subjective information about characteristics of the project under consideration. This approach typical prevent economic data (Hanley, Ryan & Wright, 2003), such as projected sales, profit margins, as well as costs, but rely more on subjective assessments of strategic variables, such as fit with corporate objectives, competitive advantage, and market attractiveness. Included in this category are checklists and their extension, scoring models (Cooper 1993, p.170). Cost benefit methods and approach rely on the subjective inputs of characteristics that are likely to be known. In Cost benefit analysis, all costs and benefits are measured and compared in monetary terms (Smith, 2003).
The Cost benefit analysis for the implementation of the investment on new medical device in HK hospital is shown below.
The new approach considered by HA on a new medical device, which is the modern infusion pumps
Costs
Other management approach cost and fund raising approach to collaborate with potential organisations
HK .2 million
New hospital care approach for the new approach considered by HA on a new medical device, which is the modern infusion pumps.
HK 0, 000
Other Costs
HK 0, 000
Total Costs
HK1.9 million
Benefits:
· Ability to prevent more risks due to incorrect calculations which provides burden faced by the government with hospital fee/ , 000/ year
· Expanding and extending better health care provision /0 000/ year
- Improved efficiency and reliability of the services extended to patients: estimate: .7 million/ year
- Improved patient service and retention: estimate: 0,000 / year
- More ability to manage hospitals sales effort: 0,000 / year
Total Benefit: HK .22 million /year
Payback time: .8 million / .22 million = 1.7 of a year = approx. 20 months
The payback time is also known as the break even point of the analysis. Herein, it is significant than the overall benefit of a service can deliver. As expected, the estimates of the benefit given by the new investment can be noted as quite subjective. In spite of this, the management of the hospitals in cooperation with the Hospital Authority is very likely to pursue the implementation, given the short payback period.
7.0 SWOT Analysis
This part of the business deals with the assessment of the internal and external capabilities of the Hospital Authority to implement the new investment and the proposed options
SWOT chart
Strengths
Weaknesses
- The Health Care organisation has the ability to coordinate this financial management new investment to government and patients to whom the new investment is targeted.
- The Hospital Authority has the ability to use all their skills to solve the financial issue with the investment on a new medical device, which is the modern infusion pumps.
- Inability of the authorities to properly and effectively choose the option to solve financial issue
- Lack of a more comprehensive and understandable new investment plan for financial management which may be applicable to all hospitals.
Opportunities
Threats
- If done and executed effectively, there are big chances of reducing the cost spend by the government with the investment on a new medical device, which is the modern infusion pumps
- The hospital authority and the government will have the assurance that budget are equally allocated among hospital organisation
- The health authorities will also have the assurance that through this new financial management approach, patients and government will be benefited.
- The threat is the inability of the authorities to effectively implement the new financial management option which may affect its objective.
- Lack of adherence of hospital authority and patients to the new financial management approach which may lead to not achieving the standards goal.
- Lack of funds and budgets of different hospitals that will support the objectives and aims of pursuing the selected option.
- Inability of the authorities to properly implement such standards due to mismanagement.
8.0 Conclusion
Strategy to gather Enough Funding to pursue the service
In order to pursue the new approach considered by hospital organizations to invest on a new medical device, which is the modern infusion pumps health care providers, the management and the healthcare professionals should be able to gather enough funding. In this regard, there are many means and ways that the hospital can be considered to implement the said investment on new medical device.
One of which is through the help of the local government of Hong Kong. Local government and communities is a large portion of the overall health care safety net in Hong Kong, giving direct-care services and funding such items as public hospitals, transportation, educational outreach, and housing subsidies (Ketchum, 2001).
Government agencies are established at the local, state or provincial, and federal levels to provide public health services. Health agencies at the state, county, or city level vary according to the need of the area. Their funds, generally from taxes, are administered by elected or appointed officials (Kosher et al, 2004).
Local health departments have accountabilities for developing projects to meet the health needs of the people, giving the necessary staff and facilities to carry out these projects, continually evaluating the effectiveness of the projects, and monitoring changing needs. State health organisations are responsible for assisting the local health departments specifically by giving funds for investing on new medical device needed by the public.
In addition, the health care organisations that will consider the investment can also raise funds and financial budgets from different non-government organisations which addresses the needs for having quality living among patients. The finance committee can also consider some adjustments on the budget and can even seek external help from other organisations for additional funding. During the actual running of the investment on new medical device, the hospital manager must make sure that proper allocation of the budget will be provided for the investment on new medical device. With this, proper accounting of resources must be done, taking note of the progress of the new approach considered by HA to invest on a new medical device, which is the modern infusion pumps and using graphs to monitor the progression of the new investment.
The finance committee of the said service can also seek help from different organisations; especially multinational organisations that are based in Hong Kong in helping them have enough budgets to pursue the new investment. Herein, the management is able to create good relationships to potential industries that would sponsor then their financial needs to pursue the new investment. Solicitation is another significant and valuable way to gather funds from private and public individuals, groups, or corporations.
Reflective Commentary
In this report, much has been realised and learned by the author, including significant values and principles in life. Right from the beginning, the author has learned the value of patience and perseverance to be able to succeed in this report. Patience has assisted the author to conceptualise the ideas needed for this report. Through perseverance, the author was able to formulate a report process, one that will not only benefit himself but most especially the management and employees of the health care organisations. Both these values have helped the author in gathering information, analysing results and formulating recommendations.
As this report employed the different business approaches the author has learned how to be keener to in what approach to be considered. I have become more sensitive to what is going on in the health care organisations and to the people working for it and the people that receives health care services. This also has made realised the significance of being more transparent. During the, the importance of dealing with business activities effectively has been realised. Herein, the author was able to be a part of the health care organisations and health care providers as well as patients. As a result, I am able to gain the necessary information that had made this report possible.
Much of the author’s learning is attributed to the marketing strategies used by health care organisations. One attitude that the author had identified to be significant is how the health care organisations initiate marketing to gain competitive advantage and how they adapt the technological advancement with their business approach. Being able to realise the importance of having a marketing strategy that is integrated the modern device and technology and the benefits that can be gained from using such instrument, health care organisations has use this technique in providing health care services on their patients. The author also learned that although new investments has significant impact for marketing or promoting services of health care organisations, there are also some problems that can be encountered on using this. . From this, the author also learned the importance of prioritising the most important things. Herein, the author realised that such findings can not only be applied to our work environments or businesses but most especially to our own personal lives.
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