Introduction
The advancement of information technology perhaps has a function in the management of organizations. Of these organizations, managed care has a formidable implication on the society. Information technology has been instrumental in ensuring faster flow of information. It has been of great assistance in maintenance of electronic records. In the past decades, the growth of information on the field of managed care has formidable implications. Such organizations have been able to cut costs with information systems (Schaffer, 1993). Information systems have been instrumental in coordination of care, communication with patients and in the provision of healthcare data. Information Technology therefore, is important for MCOs in various ways. It is important in the management of operational activities as well as supporting its business goals.
Therefore, it is essential that the IT department align with other operational departments. In the process of this alignment, organizations are able to cut on risks as well as costs. Then in order to meet these objectives, the IT department needs to have the capacity. This capacity requires the IT department to be efficient. Its efficiency requires the department to have competent workforce, tools as well as a perfect scope of operation (Schaffer, 1993). For this organization, the efficiency of the IT department needs to be a goal. This paper outlays various elements of an effective IT department, the composition of the system and its costs implications.
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Elements of Information System
In a managed care organization, information technology is a key feature. Information technology is a key determinant for such organizations in terms of profitability. It is also important to note that information technology in the recent past has been a key determinant in business competition. For an organization, effective information technology system is essential in tacking patients. Information systems elements are essential in ensuring decision making for managers In order to create an important information system for managed care organization; certain elements are important.
Key Elements
In a managed care organization, the key elements include the hardware part of the system. It also consists of the software, data, procedure and people. In a managed care organization, the IT system needs to converge towards standardization. For example, standardization in records management provides for the formation for strong practice structures (Schaffer, 1993). The medical management system includes definition of elements. This structure on the other hand, includes coding of patients’ information. Such structures also include common message protocol at the organization. Therefore, the recorded information needs to be kept under security and confidentiality. It is also important for the IT System to consist of automation (Meijer, 2001). Automation of records in managed care organization has seen an improvement of service delivery. Therefore, the IT system design needs automation in order to improve the profitability of the organization.
On the other hand, the IT system needs to generate reports on organizational performance. Such reports are important in the management of resources. The importance of the generation of reports assists in developing daily hospital data. The system will be able to provide information on the age of patients. It will also provide information of the name of patients, physician, plan and other biographic data (Hollingsworth et al 2012). For the organization’s system to perform effectively, certain elements on service coordination and case management are important. This step is important since it assists in approval of surgery procedures. Another facility of importance on the element of the Information system includes Pharmacy Utilization. In an organization, pharmacy utilization IT system provides data on drug utilization by each provider.
In such a system, data includes physician capitation, identification numbers, hospital, specialty and pharmacy. On the other hand, the information system provides details on diagnosis and hospital variance. Another important element in the managed care information system includes claims of Vendor (Hollingsworth et al 2012). This data is important in the provision of data on patterns of billing. In such a front, data of importance includes the identity of vendors, date of service, identification information, money paid, description and plan.
Information Technology
The information technology of the (MCO) needs to enhance the safety, accountability and quality of service delivery. The tech
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