Assessment 2: Developing a Business Case

Assessment 2: Developing a Business Case

Assessment 2: Developing a Business Case

Health care organizations optimize outcomes if they have adequate human, financial, and technological resources to support their everyday activities. Since most activities depend on an organization’s finances, forward-thinking organizations should be highly innovative and actively engaged in revenue-generating initiatives. In this case, they should be continually involved in internal and external environments’ scanning, identify economic opportunities, and exploit the viable openings appropriately. Detailed risk analysis is crucial to avoid making regrettable mistakes. This paper analyzes the benefits and risks of the proposed initiative to examine its viability, effects on community health care delivery, and cost control.

Potential Economic Opportunities and Risks

The proposed initiative involves a partnership with the local association of greengrocers. The association is routinely involved in community health programs such as awareness of healthy eating and living, and the partnership will expand the scope of the current programs to reach more people. Through the partnership, the organization is expected to promote healthy living and reduce hospital visits, screen at-risk populations and earn revenue through patients’ referrals. Nurses and other health care professionals engaged in the program will earn a salary from it. The opportunity will also improve the organization’s reputation, further improving its competitiveness.

Despite these opportunities and the associated growth potential, several risks are associated with the opportunity. The first possible risk is straining the current workforce since many health care professionals will be involved in the partnership. A significant proportion of the current nursing staffing will serve both organization’s and the initiative’s roles. The double engagement can affect patient care adversely since patients will not be receiving care consistently from the same health care providers. The strain is also likely to overwhelm the current workforce mentally and physically, a risk to nursing burnout, a leading cause of workforce turnover in health care settings (Willard-Grace et al., 2019). Financial strain is also possible since technology, training, and workforce support require substantial financial support. Straining the organization can make it unable to sustain some of the current programs, adversely affecting health care outcomes and organizational sustainability. The current financial reserve cannot match the capital expenditure required to fully fund the initiative. This is a gap that needs to be addressed to avoid engaging in a project that will not achieve the projected long-term benefits. The organization’s management should also develop mechanisms to overcome possible competition from other organizations likely to engage in similar programs.

A cost-benefit analysis over five years shows that the opportunities are expected to benefit the organization immensely. The capital cost for the initiative is $33,100 for the first year and will reduce gradually over the five years. Benefits, including patient services revenue and salaries that the employees will earn are projected at $28,500 in the first year and increase gradually as patient visits increase due to increased referrals. The organization is expected to start generating revenue from the second year. A five-year projection (2022-2026) shows that the organization will make up to $171, 615.54 in five years (Appendix A). Generally, the initiative is projected to be a source of revenue to sustain the organization’s operations through patient referrals. The health care staff involved will also get a chance to supplement its income. The improved reputation will be pivotal in improving the organization’s image. Risks threaten the organization’s financial security since the program will depend on strained resources during the COVID-19 pandemic. Also, the technologies required for screening, education, and communication are expensive. Despite the risks, the opportunity is sensible since most of the expenses are capital expenditures that will be recovered within five years (Appendix A).