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MHC 6301 Assignment Outpatient Finances

MHC 6301 Assignment Outpatient Finances


Compared the services between an OPD and an ER, analyzing the strengths of each, noting where each falls short.

Explained at least two reasons why OPDs are more financially productive than ERs, and justified your reasoning.

Used graphical representation to illustrate the comparisons.

Presented a structured document free of spelling and grammatical errors.

Properly cited sources using the APA format

Developing an outpatient treatment (OT) program is a major financial challenge, whether the program is entirely new or is part of an existing treatment entity. The process of program development requires careful planning and extensive work to ensure adequate financial support. The decision to develop a program should be based on a well-developed strategic planning process (seeĀ chapter 2) and a clear understanding of what an OT program entails. Because a new program incurs extensive costs for office space, furniture, staff, computers, and other equipment before it provides services to clients and can receive payments, significant amounts of upfront capital are needed.

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Once the administrator or planner identifies a need for treatment services, potential financial support and other resources should be identified and secured to provide for both implementation and initial operating costs. Strategic partners may provide resources, work with the program planner, provide office space, or help obtain funding. Community organizations that see a need for establishing treatment services are likely partners. Locally based foundations and businesses also may be approached for assistance in developing a program. Potential funders are more likely to contribute startup money if they are convinced that the program can cover costs once it is operating.

Documented assurance is necessary from major referral and payment sources that they will provide information on potential payment sources for clients they refer. Signed contracts with expected payers ensure adequate cashflow and establish a budget for the new program’s fee structure.

Identification and recruitment of these strategic partners are important steps in the program development process. Before and during the program development process, administrators and planners should work closely with potential referral and payment sources to determine their needs and whether the program will fit those needs. Programs also need to learn whether referral sources will consider new partners, the types of contracts they use, their timeframes for reimbursement, and the process for negotiating contracts. Holding focus groups and strategy meetings with individuals from potential referral sources allows these groups to suggest services they need and for which reimbursement is available. Potential referral sources are more invested in a program if they are involved throughout the planning process. All potential stakeholders should be informed regularly of the development plans and milestones achieved.

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