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Cost Savings Analysis

This assessment briefs an executive summary on a cost-savings analysis spreadsheet. Cost savings data has been compiled in the spreadsheet for the role of senior care coordinator, which dictates how care coordination can promote the organization’s financial health by reducing costs and enhancing cost-savings along with improved patient outcomes. This is possible when the organization integrates strategic planning of Health Information Technology (HIT) and promotes care coordination by leveraging technology. Following is the executive summary of cost-savings analysis by harnessing the power of care coordination and utilization of HIT.

NURS FPX 6612 Assessment 4 Cost Savings Analysis

The cost-saving elements in the spreadsheet are preventive care programs, care transitions, telehealth services, and Electronic Health Record (EHR) optimization. Implementing preventive care programs is expected to reduce downstream healthcare costs, resulting in anticipated savings of $8,000. Implementing effective care transitions with coordinated and collaborative care can reduce costs from $10,000 annually to $5,000 due to reduced hospital readmission rates and improved post-discharge care (Abraham et al., 2022).

Similarly, the current costs of in-person consultations per patient per year are $7,500, which is anticipated to save $3,000 annually by implementing telehealth services. This can reduce the need for physical hospital visits and save organizational resources by saving costs for physical checkups. The last cost-saving element involves EHR optimization, reducing administrative errors, and improving data accessibility. As a result, the anticipated savings are $6,500 from current costs of $12,000 due to inefficiency and outdated EHR.

Ways in Which Care Coordination Can Produce Cost Savings

Care coordination is the delivery of healthcare services with the collaborative effort of the multidisciplinary team within a healthcare organization. Care coordination can produce cost savings in several ways, such as conducting preventive care programs through care coordination, which can reduce the likelihood of expensive acute care treatments. One study states the prevention costs for preventing disease outbreaks and their subsequent costs for ten years are approximately 2% of the actual costs of the COVID-19 pandemic (Dobson et al., 2020). This shows that preventive care programs might incur additional costs initially but result in cost savings in the long run by preventing diseases in the future.

Similarly, care coordination is essential in chronic care management. Patients with chronic diseases require holistic care from different disciplines, such as physicians, nurses, pharmacists, physical therapists, patient educators, and counselors (Caskey et al., 2019). Effective care coordination in chronic disease management leads to fewer hospitalizations and better management of chronic conditions. This results in substantial cost savings. One study evaluated the role of care coordination in saving Medicaid expenditures and concluded that chronic condition management with care coordination decreased costs from $1633 to $1341 (Caskey et al., 2019).

NURS FPX 6612 Assessment 4 Cost Savings Analysis

  With the help of EHR optimization, care coordination improves and reduces unnecessary duplication of tests, which leads to cost savings in the range of $29.6 billion to $38.2 billion per year (Kumar et al., 2022). Additionally, care coordination can improve the efficiency of care transitions and help streamline patient discharge with effective patient education and guidance. This