Financial Impact Analysis – Coursework Example
Financial Impact Analysis A financial impact analysis is a projection of direct, current and organization’s costs and revenues associated with a given project. It is very significant in planning for (EHR). In the contemporary health care organization, the provision of customer-oriented services is slowly becoming the trend. Sustenance of this trend requires high-quality information systems and resources. Planning is vital in the estimation of the fiscal impact of the planning process of the health resources. It assists health firms to comprehend the extent of the financial impact of the program (Greenberg, Weiner & Greenberg, 2009). Specifically, it informs the health institutions about the magnitude of costs involved in investment in electronic health records. The use of proper analysis output of the plans helps in the allocation of adequate financial resources. The initiative will improve the provision of customer-oriented services.
Various fiscal analyses methods have various benefits and drawbacks. The per capita multiplier method of analysis uses the residential development data (Budden & Lee, 2014). It is useful as it considers the existing number of users. Hence, it guarantees the availability of information resources at present. However, it does not consider the future possibility of increment in the number of users. The service standard method uses the U.S census data, and this incorporates the future changes in population. Lastly, the case study method is crucial for use in all instances of analyses. Financial analysts can obtain valuable insights from technocrats. From the collection of ideas, the health organization administration makes recommendations regarding the plan. In conclusion, financial analysis in planning for EHR is imperative. It is also significant to comprehend various types of financial analysis involved in planning in terms of the risks and benefits that they bear.
Budden, A., & Lee, K. (2014). Analysis perspective for assessing the financial impact of interventions used in rural/remote settings – a Canadian case study of fomepizole for toxic alcohol poisoning. Value in Health, 17(3), A212. Doi:10.1016/j.jval.2014.03.1243
Greenberg, M., Weiner, M., & Greenberg, G. (2009). Risk-Reducing Legal Documents: Controlling Personal Health and Financial Resources. Risk Analysis, 29(11), 1578-1587. Doi:10.1111/j.1539-6924.2009.01282.x