Quality Improvement Plan Writing Assignment: Justifying Cost

Justifying Costs
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Justifying Costs
Majority of the health profession belief that the diabetic management plans are effective in the improvement and maintenance of health. However, they succeed in the reduction of severe complications in diabetic patients. Consequently, there is a believe that the benefits of these plans to the society at large outweighs its costs when considering the changes in a patient’s quality of life. On the contrary, at the society level, health care cost savings resulting from a reduction of complications outweighs additional specialized service costs. However, the actors such as the health care institution or delivery system may not experience these benefits resulting from the plans. This part addresses the individual costs and constituents to which they accrue.
Costs
The costs associated with the implementation of diabetes improvement plans fall into two categories of players: providers and patients. This analysis combines both plans and providers because the division of the plans between the providers and patients is dependent on contractual arrangements that are in place. The patients pay direct costs, which the plans are successful in passing to them either in the form of increased premiums or out-of-pocket costs.
There are three categories that the plans and providers face: direct operating costs, capital costs and indirect costs which results from changes in patient enrolment and service utilization. The capital costs are only incurred once when initiating the plan and are independent. For example, investments in equipment and information technology systems. Additionally, there will be one-time staff costs which will be used in designing and launching the plan. Another one-time capital costs which are dependent on the scale of the plan are the training costs that ...