NURS FPX 6612 Assessment 4 Cost Savings Analysis

Name

Capella university

NURS-FPX 6612 Health Care Models Used in Care Coordination

Prof. Name

Date

Cost Savings Analysis

This assessment presents an executive summary of a cost-savings analysis spreadsheet, focusing on the financial impact of care coordination initiatives within a healthcare organization. The primary objective is to illustrate how effective care coordination can support an organization’s financial sustainability by decreasing expenses while simultaneously improving patient outcomes. This strategy becomes increasingly feasible when integrated with advanced Health Information Technology (HIT) systems. The following sections outline the cost-saving components derived from the spreadsheet and explain how care coordination, supported by technology, can optimize healthcare delivery, generate financial savings, and enhance overall healthcare quality.

Cost-Saving Elements

The cost-saving analysis identifies four primary elements: preventive care programs, care transitions, telehealth services, and Electronic Health Record (EHR) optimization. These interventions target key areas where healthcare organizations typically encounter significant operational costs. By strategically implementing these programs, organizations can reduce expenses and reallocate resources to improve patient care services.

The financial data associated with these cost-saving initiatives are summarized in Table 1 below:

Table 1

Annual Costs and Anticipated Savings

Cost-Saving Element	Current Costs (\$) Per Year	Anticipated Savings (\$) Per Year
Preventive Care Programs	15,000	8,000
Care Transitions	10,000	5,000
Telehealth Services	7,500	3,000
EHR Optimization	12,000	6,500

Implementing preventive care initiatives is projected to yield \$8,000 in annual savings by reducing downstream expenses associated with avoidable acute care episodes. Effective care transition strategies can decrease readmissions and post-discharge complications, resulting in \$5,000 in savings per year (Abraham et al., 2022). Similarly, integrating telehealth services can help avoid unnecessary hospital visits, saving approximately \$3,000 annually. EHR optimization enhances data accessibility and minimizes administrative errors, with anticipated savings of \$6,500 by replacing outdated systems with more efficient platforms.

Ways in Which Care Coordination Can Produce Cost Savings

Care coordination involves a collaborative, multidisciplinary approach to healthcare delivery, with teams working together to manage patient care efficiently. One significant way it generates cost savings is through the implementation of preventive care programs. Proactively addressing health risks and promoting early intervention strategies can substantially lower the need for costly emergency care. Dobson et al. (2020) highlighted that the long-term cost of preventive initiatives is a fraction of the expenses associated with large-scale disease outbreaks, such as COVID-19, underscoring the financial benefits of such programs.

Another key area is chronic care management. Patients with chronic diseases often require a coordinated plan involving multiple specialists and healthcare professionals, including nurses, pharmacists, therapists, and educators. Caskey et al. (2019) demonstrated that coordinated care for chronic conditions can reduce Medicaid expenditures, lowering per-patient costs from \$1,633 to \$1,341. By reducing hospitalizations and improving chronic disease management, healthcare organizations can achieve measurable financial relief.

EHR optimization is also pivotal in reducing unnecessary diagnostic tests, duplicate procedures, and documentation errors. Kumar et al. (2022) estimated that effective EHR systems could produce annual savings between \$29.6 billion and \$38.2 billion by streamlining workflows and improving information accuracy. Additionally, efficient care transitions through coordinated discharge planning and patient education minimize hospital readmissions and reduce costs associated with emergency treatments (Tomlinson et al., 2020).

Underlying Assumptions in Analysis

Several assumptions inform this analysis. It presumes that care coordination programs are specifically tailored to meet the population’s unique healthcare needs and that the healthcare system fully integrates HIT solutions to enable seamless communication among providers. Another foundational assumption is that patient participation in their care plans, particularly during transitions between care settings, significantly contributes to the success of these initiatives (Tomlinson et al., 2020). This analysis further assumes consistent organizational support for program implementation and appropriate staff training to optimize both HIT systems and care coordination protocols.

Care Coordination, Improved Health Consumerism, and Positive Health Outcomes

Care coordination not only supports organizational financial health but also enhances patient-centered care and health consumerism. By actively involving patients in their healthcare decisions, care coordination encourages self-management and fosters a stronger sense of personal accountability. According to Vogus et al. (2020), patient engagement increases adherence to treatment plans, positively affecting both individual health outcomes and overall healthcare system performance.

In addition, care coordination ensures that care plans comprehensively address social determinants of health and lifestyle factors, tailoring treatments to individual circumstances. This personalized approach contributes to improved health outcomes by considering patients’ unique social and environmental contexts (Karam et al., 2021). Preventive care plans and early intervention strategies, when integrated into coordinated care models, also mitigate disease progression and effectively manage chronic conditions, ultimately reducing the burden of long-term healthcare costs.

The integration of HIT tools such as EHRs and telehealth services further strengthens these efforts. Crowley et al. (2022) observed that such technologies improve communication between patients and providers, enhance adherence to prescribed treatments, and support efficient chronic disease management, contributing to improved health outcomes.

Care Coordination and Collection of Evidence-Based Data

Effective care coordination relies heavily on collaboration among healthcare professionals from various disciplines to deliver timely, high-quality care. Accountable Care Organizations (ACOs) provide a structured model for enhancing care coordination efforts, promoting systematic data collection and information sharing. Coran et al. (2021) noted that ACOs improve data collection by integrating risk stratification strategies, allowing providers to identify high-risk patients who would benefit from targeted interventions.

Data exchange through Health Information Exchanges (HIEs) enhances interoperability and ensures that relevant health information is readily available to all care team members across the care continuum. Kharrazi et al. (2023) emphasized the importance of secure, integrated data systems in facilitating evidence-based decision-making. These mechanisms help identify population health trends and optimize care delivery by aligning patient outcomes with value-based care models.

Fraze et al. (2020) found that incorporating population health management strategies within ACOs not only improves data collection for preventive care but also supports the analysis of clinical trends, leading to the development of data-driven care interventions. Furthermore, focusing care coordination on measurable outcomes, cost-effectiveness, and patient satisfaction ensures the continual collection of reliable, evidence-based data to inform future healthcare practices.

Conclusion

This analysis demonstrates the critical role of care coordination and HIT integration in achieving organizational cost savings and enhancing healthcare quality. By investing in preventive care programs, telehealth services, optimized EHR systems, and effective care transitions, healthcare organizations can significantly reduce operational costs while improving patient outcomes.

Care coordination efforts, especially when implemented within ACO frameworks, not only facilitate efficient service delivery but also improve data collection through integrated, interoperable systems. These efforts promote value-based, patient-centered care, reducing redundancies, minimizing preventable hospital visits, and ensuring appropriate resource allocation. Ultimately, these coordinated strategies enhance both organizational sustainability and patient health outcomes.

References

Abraham, J., Meng, A., Tripathy, S., Kitsiou, S., & Kannampallil, T. (2022). Effect of health information technology (HIT)-based discharge transition interventions on patient readmissions and emergency room visits: A systematic review. Journal of the American Medical Informatics Association. https://doi.org/10.1093/jamia/ocac013

NURS FPX 6612 Assessment 4 Cost Savings Analysis

Caskey, R., Moran, K., Touchette, D., Martin, M., Munoz, G., Kanabar, P., & Van Voorhees, B. (2019). Effect of comprehensive care coordination on Medicaid expenditures compared with usual care among children and youth with chronic disease. JAMA Network Open, 2(10). https://doi.org/10.1001/jamanetworkopen.2019.12604

Coran, J. J., Schario, M. E., & Pronovost, P. J. (2021). Stratifying for value: An updated population health risk stratification approach. Population Health Management. https://doi.org/10.1089/pop.2021.0096

Crowley, M. J., Tarkington, P. E., Bosworth, H. B., Jeffreys, A. S., Coffman, C. J., Maciejewski, M. L., et al. (2022). Effect of a comprehensive telehealth intervention vs telemonitoring and care coordination in patients with persistently poor type 2 diabetes control. JAMA Internal Medicine, 182(9), 943. https://doi.org/10.1001/jamainternmed.2022.2947

Dobson, A. P., Pimm, S. L., Hannah, L., Kaufman, L., Ahumada, J. A., Ando, A. W., et al. (2020). Ecology and economics for pandemic prevention. Science, 369(6502), 379–381. https://doi.org/10.1126/science.abc3189

Fraze, T. K., Lewis, V. A., Tierney, K. I., Colla, C. H., & Bynum, J. P. (2020). Clinical capabilities within accountable care organizations: A mixed-methods study. Health Affairs, 39(4), 622–630. https://doi.org/10.1377/hlthaff.2019.01053

Karam, M., Chouinard, M. C., Poitras, M. E., Couturier, Y., & Larouche, D. (2021). Nursing case management: A promising approach for care coordination in primary healthcare. BMC Primary Care, 22(1). https://doi.org/10.1186/s12875-021-01508-2

Kharrazi, H., Johnson, K. E., Evans, R. S., Schadow, G., & Weiner, J. P. (2023). Developing a health information exchange for integrating care coordination data. Journal of the American Medical Informatics Association, 30(2), 377–386. https://doi.org/10.1093/jamia/ocad002

Kumar, A., Macey, R., & Davis, S. (2022). Health information technology and cost savings in the US healthcare system: A systematic review. Journal of Health Economics and Outcomes Research, 10(1), 12–21. https://doi.org/10.36469/jheor.2022.31956

NURS FPX 6612 Assessment 4 Cost Savings Analysis

Vogus, T. J., Singer, S. J., & Meszaros, J. (2020). The role of organizational culture in effective care coordination. Medical Care Research and Review, 77(3), 311–320. https://doi.org/10.1177/1077558718766536