Graduate Management Project: Optimizing Cardiology and Radiology Services at Evans Army Community Hospital
Abstract
During fiscal years 2003 and 2004, Evans Army Community Hospital (EACH), Port Carson, Colorado, diligently prepared itself to meet the operating challenges under the new TRICARE contracts. As part of EACH's preparation efforts, this study provides an optimization analysis of cardiology and radiology services, utilizing the business case analysis process. The results of this study indicate that a recapture opportunity exist by providing in-house non-invasive echocardiograph services, which would yield a 36-month return on investment (ROI) of $210,000. Additionally, the potential for an 80 percent reduction in radiology purchased care can be realized, provided EACH procures a magnetic resonance imaging device, sustains current staffing levels, and institutes strict referral management under the new TRICARE contracts. Furthermore, diagnostic and therapeutic cardiology product lines possessed no recapture opportunity, as recapture efforts would yield an annual net loss exceeding $500,000. The primary cost savings effort under these cardiology product lines would be to negotiate a discounted reimbursement rate with the Veteran's Administration (VA) . Engaging in these optimizing efforts will increase EACH's ability to operate within budgetary limits, and more importantly provide the best health care delivery opt ions to all beneficiaries to whom EACH serves.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2004
- Accession Number
- ADA432710
Entities
People
- Harld J. Geolingo
Organizations
- Academy of Health Sciences