Phase 2 Assignment

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The assignment this week will be the second short paper on Return on investment with a focus on the steps

recommended for building the documentation for the justification of a soft return (Soft costs include risk avoidance,

client goodwill, patient safety, process improvement, regulatory compliance and support costs) and the gathering of

metrics with the intention of estimating the financial benefits expected from the project. There are three steps in

documenting soft returns, which are identifying a process improvement opportunity, create a formula to calculate the

benefits, and determine the costs of the process and the net benefits. Many projects in healthcare today require

large outlays of capital for electronic health records, clinical information systems whose return on investment is not

easily documented with new revenues and operating expenses but from a quality standpoint are wanted and

needed. In your research, consider what would be needed to support a capital acquisition of Electronic Health

Records that would improve efficiency, quality, customer satisfaction, and overall effectiveness within the

organization. In your writing show an example of the three steps in documenting a soft return. Also, would a project management office establishment be of any assistance in monitoring the project? Phase 3 Assignment: This weeks assignment is the third component of our Return on Investment (ROI) project. The focus of this weeks short paper writing will be to consider the justification of the capital expenditure. Three key aspects should be considered in your writing: (1) Amount and type of expenditure (2) Attainment of key decision criteria (3) Detailed financial analysis. Using pro-forma data used in our Collaborate Class as a financial basis ( A Cost Benefit Analysis- Bardon, C. G., Wang, S. J., Middleton, B., Prosser, L. A., Spurr, C. D., Carchidi, P. J., et al. (2003). The American Journal of Medicine , 114 .) p repare a net present value analysis using a 6% hurdle rate, profitability index (see chapters 18 and 19 in our text for details) , for you capital project. Do not consider capital cost reimbursement from third-party payers in your calculation. Finally, consider in your writing how you would factor risk (technology change, Physician acceptance, competition from other HCOs, accuracy of market data and volume projections) associated with the capital project in your discount rate calculation.