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Conducting Home Health Care Like A Business Peer Reviewed Journal

Resource Allocation in a Home Health Care Agency As the U.S. population continues to show growth in the senior and elderly generations, a corresponding increase in health care agencies and facilities will reflect the increased demand for health and nursing services. Growth is particularly anticipated in the home health care industry as the "boomer" generation is geared toward independent living far into their lifetimes at unprecedented rates (Cubanski, 2014). Competition between these home health care agencies is expected to heat up, as economists say, since demand for quality care will be bolstered by the rise of the upper socio-economic strata in the U.S. (Varkevisser, et al., 2009). What this means for home health care administration and management is an elevated need to ensure that resource allocation exhibits the stewardship demanded by the marketplace (Cubanski, 2014).

How does your health care facility manage resource allocation?

In order to create a forward looking auditable resource allocation system, senior management at the Home Health Agency in La Mesa, California, prepares an annual budget, budget justification, and operating plan. This process ensures that sufficient and appropriate amounts of money are available for program implementation and to provide the service articulation that will meet the needs of the home health population and their families. The governing body of the home health agency conducts quarterly reviews of the approved resource allocation plan.

What systems and processes are in place?

The development of the annual budget and the resource allocation plan rolls up information from a comprehensive review of data about operations. The annual budget is designed to dovetail with the short-term and long-term strategic plans for the agency (Sussman, 2003). This means...

An important part of developing the annual budget is consideration of the assumptions upon which the operating budget is built, and these considerations are reflected in the budget justification. Projections for market demand are based on data collected and analyzed for patient care needs forecasts and associated staffing plans and challenges across the organization. These projections are likely to include an annual or bi-annual survey of the marketplace serving key patient populations.
Once this basis has been established, data from risk management studies and the utilization review are considered so that identified performance improvement activities receive appropriate levels of funding. As with any budgetary review, the sources associated with revenue, capital expenditures, and operating expenses are factored in to provide a dependable assessment of the adequacy of fiscal resources and allocations. Information that indicates a need to refine the fiscal allocation for the provision of care, such as new legislation, compliance reviews, staffing wages and salary adjustments, and such are all factored into the budget allocation and budget justification. These figures would also reflect the findings of processes that measure the performance and describe the improvement of performance for each department, office, and service that are or should be represented by line items in the approved final budget.

How are resource allocation and distribution determined?

The process that leads up to the establishment of an approved budget is highly collaborative and engages senior management and representatives from all programs and departments. Through a series of meetings and multiple rounds of communication,…

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References

Bottrell, M.M. (2013, Summer). Ethics Quality Helps Build Healthy Organizations. Organizational Health, 19. Retrieved from http://www.ethics.va.gov/docs/integratedethics/art_bottrell_orghealth_v19_2013.pdf

Cubanski, J., Swoope, C., Damico, A., and Neuman, T. (2014, January 9). Health care on a budget: The financial burden of health spending by Medicare households. Retrieved from http://kff.org/medicare/issue-brief/health-care-on-a-budget-the-financial-burden-of-health-spending-by-medicare-households/

Heman, B. (2015, July 28). CMS projects higher healthcare spending growth through 2024. Centers for Medicare & Medicaid Services (CMS). Modern Healthcare. Retreived from http://www.modernhealthcare.com

Sussman, J.H. (2003). Strategic budgeting: A healthcare imperative. Kaufman Hall. Retreived from http://www.healthleadersmedia.com/content/128519.pdf
Tuhana -- Facilitating Community. (2015). Innovative resource allocation: How might innovative resource development be achieved? Retrieved from http://www.tuhana.org.nz/index.php/innovative-resource-allocation
Varkevisser, M., van der Geest, S.A., and Shut, F.T. (2009, August 7). Assessing hospital competition when prices don't matter to patients: The use of time-elasticities. International Journal of Health Care Finance and Economics, 10(1), 43-60. Retreived from http://link.springer.com/article/10.1007/s10754-009-9070-6
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