Case No.

1
New Century Health Clinic

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Project Leader: PAGUIO, Erika Sheryl B.
Team Members:
1. AGWILANG, Shimie P.
2. CABOJOC, Rio T.
3. GARCIA, Aron Dean Paul B.
4. LIM, Roseanne Olivia T.
5. MASANGCAY, Giovanni Martin C.
6. MONTES, Bayani P.

Class Code: [9323]-[MWF]-[1:00-2:00]-[Group No. 2]

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Remarks:
August 14 2009

1000 West Main ST

Fullerton, California

Anita Davenport
Office Manager
New Century Health Clinic

Dear Ms. Davenport:

The information management team is currently researching on the inner workings of

your company and would like to request an interview with you and some stakeholders
of the said company. We are sure that you would be an excellent source of information
and we would like to learn more about your information system that we may be able to
design the most appropriate computer information system for your company.

We believe that this project will fill the existing gap in your current system, the gap
that makes your company ineffective. We, the information management team can
provide you automated computer systems to effectively and efficiently smoothen your
company’s workflow. We assure you that our team has the required knowledge and
skills to provide you the best and exact systems that your company needs.

Attached to this letter are some of the probable questions that we would be asking you
and the stakeholders.

We hope that you could accommodate our request. Please contact us by phone at
09273697437 or by email at j0logz1008@gmail.com to set up the interview at your
most convenient time. The information management team appreciates your time in
considering our request.

Sincerely yours,

Information Management Team

Erika Sheryl B. Paguio
Team Leader
Pre-specified Questions

Office Manager
1. What is/are your responsibilities?
2. How many systems do you use in your Clinic?
3. Could you tell us something about the system you’re currently using?
4. What is the scope of your system that you currently use?
5. With the current condition of the IS you’re using, how long do you think it can
still support business transactions in the future?

Cashier
1. What is/are your responsibilities?
2. Could you tell us something about the system you’re currently using?
3. How do you receive the payments of the patients?
4. Do you accept credit cards as payments?
5. To whom do you submit the cash collected?

Payroll clerk/Accountant
1. What is/are your responsibilities?
2. Could you tell us something about the system you’re currently using?
3. How is the process of insurance claim?
4. What is the minimum salary of each employee?
5. Do you allow cash advances?

Secretary
1. What is/are your responsibilities?
2. Could you tell us something about the system you’re currently using?
3. In a day, how many patients take a reservation to have appointment to the
doctors?
4. How do you manage the appointments of patient with the doctors?
5. To whom do you transfer information after acquiring it?

Patient Record Keeper

1. What is/are your responsibilities?
2. Could you tell us something about the system you’re currently using?
3. How do you get information from patients?
4. Where do you file the information gathered from the patients?
5. What information do you require of your patients?

Logistics Officer
1. What is/are your responsibilities?
2. Could you tell us something about the system you’re currently using?
3. How often do you re-stock your inventory?
4. Where do you get your medical supplies?
5. How long do you usually stock your supplies?
PROJECT/CASE SUMMARY
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Project/Case Description:

New Century Health Clinic (NCHC), a traditional medical care facility offering
preventive medicine, is having problems regarding its clinic system. The clinic was
busier and more profitable and the current staffs can no longer handle the workload.
Along with patient records and insurance, all aspects of the clinic's operations,
including office payroll, tax reporting, and employee profit distribution will be
considered. NCHC is now looking for ways to support their operations through
Information Technology that will also allow for future growth. Since there is no
member of the staff who had computer experience, they decided to hire a systems
analyst who would study and give solutions regarding their problems.

Recommendation(s):

Proposed Systems:

The systems analysts recommend the use of Patient Profiling System (PPS) for
easier access and to reduce time consumption in doing paper works. There must also
be an online appointment wherein the patients are able to make reservations through
the internet.

Transaction Processing System (TPS) enables the company to record and

monitor all kinds of transactions and the money that goes in and out the company. It
can also keep track of the circulation of money in the firm.

The objective of Inventory Management System (IMS) is to manage the physical

and logical properties of the business resources and their relationship. It also ensures
efficient and timely identification of the firm’s assets. It identifies and tracks all assets
processing in the inventory.

Decision Support System (DSS) enables the user to access the raw data given
by the other three systems used and it supports in the decision making process. An
example of this is if the manager sees in the DSS that the resources have already been
depleted, it will inform the logistics officer to replenish their clinic’s inventory.
Identified Constraint(s) and Probable Solution(s):

Computer Illiteracy prevents users to effectively manage the system. To be

able to overcome such constraint, one probable solution is setting up a computer
training program for the employees to understand more how the computer works and
how to use the computer system.

System Malfunction occurs when the system does not undergo maintenance
or not properly monitored. To be able to solve this kind if problem, providing daily
maintenance or scheduled maintenance will minimize deficiency and provide smooth
flow of the operation.

Information Overload occurs when the information exceeds the limit of the
system memory capacity. In order to prevent this constraint, it is recommended to
upgrade or expand the system when it has reached its limit.

Server Breakdown occurs when there are lots of viruses, errors, aging, or
information overload. As system analysts, we would recommend to install a system
protection in every computer and have scheduled maintenance.

Network Disconnection when unexpected circumstances occur. We

recommend that the management must at least have backup supporting system such
as the wireless internet connection or broadband.

Organizational Chart

Office
Manager

Payroll Clerk/ Patient Logistics

Cashier Accountant Secretary
Record Keeper Officer
List of Stakeholders

Assumed role/
Job Title/ Input(s) provided by Output(s) required by
participation in the
Position the stakeholder the stakeholder
system
Office • View overall reports • Performance • Give final decisions
Manager • Decision-maker evaluation on for the clinic
reports provided by activities
other stakeholders
Cashier • Handle financial • Receive payments • Issue receipts
transactions of patients, • Give reports on
medicine, services sales and payments
rendered, as well everyday
as insurance fees
Payroll • Handle tax and • Record employees • Employee salaries
Clerk/ insurance claims together with their or wages report
Accountant • Handle accounting salaries or wages • Pay slips
reports • Tax payment • Tax reporting
amounts • Stakeholders and
• Overtime payments patients’ insurance
reports
• Employee profit
distribution report
Secretary • Manage • Input patients’ • List of
appointment book appointments customer/patients’
• Prepare daily • Input all appointments of
appointment list appointment the day
schedules per day • List of number of
patients consulted
Patient • Keep patients’ • Input accounts of • Customer
Record information patients and their profile/information
Keeper insurance company
if available
Logistics • Order office and • Input inventories • Number of office
Officer clinic supplies and supplies and clinic supplies
• Organize office and needed to be ordered
clinic supplies • Supplies report

Stakeholders:

1. Office Manager
 The office manager has access to all the systems in the clinic. He/she
first evaluates the reports given by other stakeholders then make final decisions
on information such as ordering of additional supplies when supplies are empty
and expansion of clinic when patients are increasing through the decision
support systems (DSS).

2. Cashier

The cashier is responsible for the financial aspects of the New Century
Health Clinic (NCHC) using the Transaction Processing System (TPS). He/she
inputs the payments received and issues receipts afterwards. He/she also gives
reports on the financial status at the end of the day.

3. Payroll Clerk/Accountant

The payroll clerk/accountant handles lists of employees/stakeholders.

This includes the stakeholders’ personal information, their salaries or wages,
tax payments, insurance companies, and others. He/she checks the insurance
forms that needs to be claimed. He/she also makes employee salaries/wages
report, tax report, employees and patients’ insurance report and others. The
payroll clerk/accountant will use the Transaction Processing System (TPS).

4. Secretary

The secretary receives calls or online appointments and assigns each

patient to the corresponding schedule and doctor. He/she inputs these
schedules on the Patient Profiling System (PPS) which can be used to view the
appointments for the day.

5. Patient Record Keeper

The patient record keeper maintains patients’ information. When new

patient comes, the patient record keeper inputs all details about the patient
including the patient’s insurance company through the Patient Profiling System
(PPS). The information is then saved to a database. PPS can only be accessed by
the secretary and patient record keeper.

6. Logistics Officer

The logistics officer is the one who orders and organizes office and clinic
supplies. He/she waits the signal of the office manager for ordering additional
supplies for the clinic. He/she uses the inventory management system (IMS) to
track the current status of the office and clinic supplies.

Feasibility Study

Technical Feasibility
 The management will need to review the proposed system being used. It is to
add hardware to the current system for the increasing workloads. The hardware will
not function without the support of the software and network resources.

The hardware being stated above consists of the devices that support the data
that are going to be entered, displayed, stored, and be processed. The memory
capacity of the computer is also considered in the hardware for the system that is
going to be used.

Software has the instructions that are executed by the computer. This includes
the system software which controls the operations of other software. It has the
operating system which is the most important part. It is because it directs the
operation of the computer. Utility software is responsible for the computers’ day-to-day
operations. Application software includes the Decision Support System (DSS),
Transaction Processing System (TPS), Inventory Management System (IMS), and
Patient Profiling System (PPS).

Network resources are the resources that support the software, hardware and
also for the users to be able to work together such as the browsers for scheduling,
electronic mailing and messaging. In here, the company’s website also allows the
customers to have users communication with the management for appointments or if
they wanted to have some additional information.

The management could hire I.T. professionals for the installation and for the
preliminary tests on the systems being proposed. This can be acquired through
advertisements whether on newspapers, flyers, bulletins, or online advertisements
using the clinic’s website.

The system being proposed is upgradeable and being maintained because of the
increasing number of customers and also for the ease of use in the near future.
 Software Application Networking

Operational Feasibility

Management requested to change their current system used for keeping track of
patients, appointments, charges, and insurance claims. The change of systems is
needed in the clinic because the number of patients continues to increase and rather
than hiring more staff for a temporary fix of the problem, management has decided to
put a more permanent end to the problem. The users had the idea of decreasing works
and to make their jobs easier for them.

Our proposed system will not reduce any jobs for the company but there will be
a need to hire more people in the future. More importantly IT professionals for the
systems development, implementation and to keep the system running.

Users of the system are going to be involved in some of the decisions made
about the system as far as what they need the system to do for them and how it can
be made to do the job easier. The system will require the user to be properly trained
on the software as to avoid constant supervision while using it. Each user will have to
be trained for their specific software which will take some time and practice.

The proposed System Networking stated from the technical feasibility is

explained in this portion from systems software such as Transaction Processing
System, Patient Profiling System, Inventory Management System, and Decision
Support System.

From the networking above, the server will be the medium for the different
systems networking. Here are the explanations:

Systems Software Task and Connection

Transaction Processing System(TPS)
a. Payroll Clerk/Accountant
b. Cashier
Patient Profiling System(PPS)
a. Secretary
b. Patient Record Keeper
a. Sends records of employee’s salaries and
wages together with tax payments to the
server.
b. Will input the payments received from
patients as well as insurance fees then
automatically stored to the server.
a. Input of corresponding appointments
schedules of the doctors and patients are
stored to the server for both patient and
doctor to view and can only accessed by
the secretary.
b. The details of every patient are recorded
in this system wherein information is

Inventory Management System(IMS)
a. Logistics Officer
Decision Support System(DSS)
a. Office Manager
saved to a database in the server; it can
also be accessed by the record keeper
alone.
a. To track inventories, logistics officer
records the left items and the ordering of
other supplies in the database to be
stored in the server at the same time.
a. Has access to all the systems in the
clinic. Therefore, all information of every
system is sent to DSS by the server. In
here, the office manager can evaluate the
reports.

The server is connected to all the systems in the clinic for different transactions
taken place. It can also be the middle man to send reports from one system to
another; example is the Inventory Management System from logistics having sent to
the Decision Support System of the Office Manager. In this way, systems are
connected to each other.

The patient files then would be restricted only to the one involved with or in-
charge of the files which is the patient record keeper and secretary. The files to be
accessed will only be permitted by the doctor or the patient. This is to keep the
patient’s privacy during the transition from the old to new system and keep the same
integrity that the clinic is already known for.

Problems that may occur in here are the time it takes for the system
installation, its development and implementation and to keep the system running. It
also adds up if the system complies with all regulations and laws of the management.
The role of our proposed system is heavily based on security and keeping the
customers happy, so the transition should not only be good for the clinic, but for the
customers as well.

Economic Feasibility

The systems analysts have estimated the cost of implementing the information
systems. We have decided to hire 12 programmers. Three for each proposed system
(DSS, TPS, Inventory system, and Patient profiling system). With IT Professionals/
programmers costing $259,200 in 9 months, training cost is $20,000 in 2 weeks,
hardware cost is $3,500 for 7 computer hardware, software installation and licensing
amounts to $2,100 and system consultation and maintenance is $5,000. The total
cost of implementing information system is $289,800

• Cost of implementing information system (effective 5 years)

 Items Units Price TOTAL
IT Professionals/ 12 programmers ($20/hr/person) $259,200
Programmers 3 programmers per for 9 months
system
Training cost 2 weeks $10,000 per week $20,000
Hardware cost 7 computer sets $500 per unit $3,500
Software 7 operating $300 $2,100
installation and systems and Composed of
licensing licenses operating systems
and application
software
System Semi-annually for $500 per systems $5,000
consultation and 5 years check
maintenance
TOTALS $289,800

The cost of hiring an estimate of one additional staff per year in 5 years added
up to $316,200 if each staff is paid $7.25 per hour plus other expenses like training
expenses and others.

• Cost of hiring an estimate of one additional staff per year (effective 5 years)
- assuming that each staff is paid $1,740/month, training expenses of
$600/staff, etc.

Year Staff/s Salary/day Monthly Yearly Other Totals/ year

(8 hrs. a Salary Salary Expenses
day) (training,
insurance,
overtime)
1 1 $58 $1740 $20880 $3000 $23880
2 2 $116 $3480 $41760 $6000 $47760
3 3 $174 $5220 $62640 $9000 $71640
4 4 $232 $6960 $83520 $12000 $95520
5 5 $290 $8700 $104400 $15000 $119400
TOTAL for 5 years $358200

The table above shows the computations of implementing information systems

and hiring additional staffs. From the table, the systems analysts have concluded that
it is better to implement new information systems for the efficiency and accuracy of
the clinic systems.

As shown in the tables, the cost of installing a computerized information system

would cost $289,800 and the cost of hiring new staffs would cost $358,200. Installing
a computerized information system will not only save the company $68400 but also
make the work load of each employee considerably lighter, also giving the company a
more efficient way of keeping track of the patients’ medical history and personal
information.
Schedule Feasibility

• Transaction Processing System

Processes Time needed to develop Description

Billing 1-2 months Build the program that
handles the billing of the
patients

Daily income and expense 2 weeks – 1 month Build a program that keeps
tracking track of the daily expenses
and daily income

Absences and overtime 2 weeks - 1 month Build a program that keeps

tracking track of the employees’
absences and overtime to
compute the total
deductions or bonuses
Payroll system 1-2 months Build a program that
computes the total salaries
of each employee

Insurance processing 1-2 months Build a program that

handles the calculation of
insurance payments and
claims

• Decision Support System

Processes Time needed to develop Description

Transaction Processing 2-3 months Build a program that
Support gathers the raw data from
the TPS and uses it to aide
the user in coming up with
a suitable decision
Inventory Support 1-2 months Build a program that
allows the user to view the
information in the
inventory system
 Patient Profiling Support 1-2 months Build a program that
enables the user to extract
information from the
Patient Profiling System

• Inventory Management System

Processes Time span Description

Ordering 1-2 months Build a program where it
keeps track of how and
when the company can
stock their supplies
Releasing 1-2 months Build a program where it
keeps track of when
certain supplies are
dispersed and where they
are used
General Inventory 1-2 months Build a program that holds
the data on all the supplies
currently in the inventory

• Patient Profiling System

Processes Time span Description

Patient personal 3-4 months Build a database where
information database the patient’s personal
details are stored.
examples are contact
number, address and
past ailments
Insurance lists 1-2 months Build a program that
• Medicare handles the list of
• Health patients who need
• Life insurance payments and
• Disability claims

Appointments Processing 1-2 months Build a program which

handles the appointments
lists, included here are
the schedules and
doctors

Processing insurance claims for the patients includes several steps:

1. Requiring the patient to fill up an insurance form.
The insurance form is composed of the following details:
• Name
 • Age
• Address
• Medical history
• Insurance company
• Insurance type
2. Confirming with the said insurance company if the claims are legitimate.
3. Deducting a fixed amount from patients’ bill.
(Based on the insurance type and the terms of the insurance)
4. Sending a bill of said amount to the insurance company
5. Receiving the payment from the insurance company

Lists of some accepted insurance companies that provide Medicare are:

o Aetna
o American Family Insurance
o Bankers Life and Casualty Company
o Conseco
o Mutual of Omaha
o Premera
o Regence Group
o Thrivent Financial for Lutherans

• Training

Process Time span Description

Training 15 days To train the employees/
stakeholders to properly
utilize the computerized
information system

The entire development process of the information system would take at most 9
months which includes the training of the staff, installation of proposed systems, and
allowances for unexpected errors and delays. The development of the information
system would take 8 months and the time allotted for the training is 15 days.
References:

http://en.wikipedia.org/wiki/List_of_United_States_insurance_companies
http://www.us-insurance.com/
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