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FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 2
Introduction
A hospital at home is an example of a new line of service in the medical industry that
has been introduced with an aim of enhancing efficiency in the sector health. This new line of
service has greatly changed the way medical care is administered to the sick elderly people
not only in the United States but also other economically advanced nations. The need to
ensure that quality of the medical treatment offered to the sick elderly people is maintained
has been one of the driving forces that have forced the entrepreneurs in the field of health to
consider this option. This option has mostly been motivated by the need to reduce the many
advantages that elderly patients usually go through when they are given medical care from
acute hospitals. Some of these challenges include: the lack of quality health care offered to
these elderly people. This is usually facilitated by the fact that they cannot speak and rise they
The high cost of getting medical care from acute hospitals is another key factor that
has made some individuals to deviate to hospital at home facilities. A lot of time spent taking
the sick to the hospital is another key issue that has led to this wave of change. This has been
justified by the fact that some of the patients usually lose their lives on their way to the
hospitals due the accessibility of the hospitals from their homes. This factor makes the
hospital at home factor very practical and appealing. The fact that acutely ill older persons
usually undergo a lot of hardships when cared for in acute hospitals has been another key
factor that has greatly contributed to the change in the customer’s preference when it comes
to hospital at home.
Despite the fact that there have been many how have tried to introduce this idea into the
economy, there is need to carry out a feasibility test to analyse the nature of the idea, its
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 3
economic impact and whether it is viable or not. All these options are guided by the fact that
there have been many cases of individuals who have unsuccessfully tried to introduce the
idea into the health care industry. Thesis of this paper is: hospital at home that has passed
through the stage of feasibility for it to be incorporated initiated has more is beneficial to the
The feasibility of this study is guided by the fact that there have been many reports of
acutely ill older persons how have gone through hardships in their attempts to get medical
care from the acute care hospital. There is need to ensure that this new line of service will be
able to meet the specific needs that have led to its introduction in the health care industry.
Therefore, there has been needed to come up with an alternative that will be able to address
the issues that have been unable to be addressed by acute care hospitals. The main objective
of this feasibility test is to assess the clinical as well as medical feasibility and ability to
achieve desired goals when hospital care level is provided at the patient’s home in the form of
hospital at home. The design of the feasibility test will be prospective case series. Despite
having this design, the feasibility will also employ a bit of prospective quasi-experiment.
When it comes to the setting and the participants that will be used in carrying out the
feasibility test, the whole feasibility will be done a Medicare health system. The participants
will be elderly individuals aged above 65 of age. This elderly people used in the feasibility
test must be sick to an extent that they require to be admitted to an acute care hospital. These
elderly will also be diagnosed with exacerbation of chronic heart failure, community-acquired
interventions that will be evident will be a hospital at home model of treatment that will be
substituted with an acute care hospital. There will be specific measurements that will taken
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 4
during the feasibility to determine the variability of the study as well as to understand how
variable this two modes of treatment are and which one is more viable and beneficial. The
measures will be carried out by the aid of clinical process measures, clinical complications,
functional status, the level of satisfaction with care as well as the costs of care.
The evaluation of feasibility will be done to assess the final details about the research
on hospitals at home. The main reason of doing this is to ensure that there is all the
stakeholders are aware of the strengths and the weaknesses of the project which in this
hospital at home in this case. There will be three clear steps in carrying out the evaluation of
this study. This will be: the evaluation of the project based on the selected criteria. The
second step will be summing up the summary of the evaluation results and finally making of
recommendations(Fauntleroy, 2012). The first step of the evaluation that will have five
different subsections under which the hospital at home project will be analysed. This is done
to ensure that project is socially and economical legal and practical. The first part of the
evaluation will be the evaluation of technological and system requirements. This will be all
about ensuring that the data, sources, methods of data analysing, processing as well as
visualizing of data are correct and used accordingly. It also ensures that the software used in
making of the computing of the analysing of key issues such as the cost of facilitating the
hospital at home project is valid and up to the task. This helps in ensuring that the
The second section of the evaluation of this new line of service will be the evaluation of
the legal requirements that are necessary if the hospital at home idea has to be incorporated
into the society(Fauntleroy, 2012). This is evaluation is based on the fact that there is need to
abide by the laws of the land. Carrying out a legal evaluation of the feasibility ensures that
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 5
the project will be safe and valid to handle without having legal issues with the government.
The legal evaluation will also make its clear whether the findings of the feasibility study can
be published or not. The rules of the types of data or software to use in the presenting of the
results or the findings of the feasibility tests will also be stipulated in this particular category.
There is need to abide by the stipulations of copyright laws when carrying out the feasibility
study. It is under this section of evaluation that it becomes educates the individual carrying
out the feasibility on what to do and what not to do when it comes data presentation and
analysis methods.
The evaluation of operational requirements of this new line of service is another key
area of evaluation that determines the success of the project. This is the level of evaluation
that that one acquires skills and knowledge that are necessary for data acquisition. It is under
this evaluation level that one carries out a feasibility test on the operational requirements that
are needed to start of the projects (Leff, 2009). The hospital at home project requires
sustainable development for it to be fully implemented and developed. By the aid of the
participants that were mention in the description of the feasibility report, it is necessary to
ensure that the public participate in carrying out this part of feasibility evaluation. This is
because there is need to ensure that both the local community and the medical practitioners
are represented during the feasibility test. This will ensure that the views and information
given on the operational needs of the project are factual and representation of the reality on
The economic evaluation is one of the key sections of the hospital at home feasibility
evaluation. This is because through it becomes easier to analyse and budget financially the
amount of finance need in handling of the whole project (Leff, 2009). The fact the financial
feasibility is also vital to the sponsors as well as those willing to fund the project in case it is
found viable. The costs of the many things that will be involved in the implementation of
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 6
project are vital to be evaluated to ensure that the expected cost of the project is calculated
and estimation made. Some of the key factors that are usually considered when doing an
evaluation of the feasibility of the hospital at home idea include the cost of software and data,
the cost of hiring personnel and finally the cost of . Some of the basis of economic includes
the cost of data and software that will be used in carrying out the feasibility test. The cost of
employing specific workforce that will be necessary to be evaluated. This will enable the
organisation to know how many individuals are needed to ensure that the new line of service
is effectively implemented.
Financial Analysis
In this section of the feasibility test, there will be financial analysis of the market to
ensure that the revenues, expenses as well as the total net income that will be derived from
derived from this new line of service in the medical industry. When it comes to funding of
this new line of service, the amount of funds needed is not very high (Feldstein, 2012). This
is facilitated by the fact that the initial cost of setting up a hospital at home is health facility
isnot very high. The funds will be raised from the contributions that will be raised by the
families of the elderly individuals who were suffering of acute illness and they needed to be
admitted in the acute hospitals. On top of this there will also be donations from well-wishers
to ensure that the project is fully funded for it to be able to meets its objective.
The use of grants and contributions in funding of the project is motivated by the fact
other means of funding the project will be very expensive. The private services will also be
very costly. This is because of the increased demand to repay the money back is what makes
it very tricky to pay back the money since the amount needed as interest is usually high. The
money bought awarded has so many disadvantages that make it very difficult to be used in
funding of this project. The is justified by the fact that this type of funding is full of
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 7
uncertainties in that it majorly depends on the third party hence not very suitable when
initiating a new line of service line hospital at home. The donations and collections from the
victims despite being a good method of raising funds it is also has challenges. One of them is
the fact the amount that can be collected is not very specific and no one can actually be able
to estimate the amount of the money that can be raised. There are usually high chances of
having budget deficit and at times budget surplus since the amount collected is not clear and
certain. The fixed cost of this project will be about $7000 a month. This is the money that
will be used in paying the monthly salaries of the nurses facilitating the whole process. The
fixed cost will also cater for the number of other employees helping in the management of the
project. The variable cost will depend on the number of elderly people treated. The annual
maintenance cost will be about $2000. These figures are guided by the fact that the services
The public policy has a lot of contributions to make if at all this new line of service has
to be successful. The public policy on the public health is actually which will make this
project successful. It is actually the government policy to provide timely, quality and cost
effective medical care to the citizens without discrimination of biasness. This new line of
service is actually going to enable the government policy to be effected since the elderly
people are well taken care of. The effectiveness of the program will be achieved through
proper planning and having enough funds before initiation the whole project. This is because
through planning, there will be effective communication to ensure that the implementation of
The affordability and accessibility of the medical services will also increase the
efficiency in which the elderly people are treated hence saving them the poor conditions of
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 8
the acute hospitals they are usually admitted to. The main market priority will actually be
quality of the treatment given but there will also considerations relating to population since
the higher the population of the elderly sick people will mean more contributions. The target
population of the program is elderly people acute illness. The provision of services to elderly
people suffering of at home instead of acute hospitals that is usually in poor conditions. The
ability to reduce the cost of health services as well as increasing of the quality will also
increase the quality of the health services has also managed to provide quality of education
Market Analysis
The normal acute hospitalspossess the main competition to this new idea. This is
mainly because this idea has already been the industry for long and most people are used to it
enhance it is difficult for to actually compete with them when it comes to demand for the
market. The demographics of the target market is made of both genders in that it is composed
who are aged 65 of age and above. The census data will be vital in deciding the areas to set
the project. The area with highest number of elderly people will be the most ideal. This
elderly people usually do not really like interact with many people so that makes this project
The current change in health measures and increases use of technological ways of
treating patient will actually justifies the current use of hospital at home as the new line of
service in the medical service(Shepperd et al., 2009). The most efficient health care model in
this particular case will be the out of pocket model. This health care model will be vital the
beginning since it is all about giving of cash as a person with no government support. This
model was developed by Beveridge and Bismarck it emphasises on the use of private sector
but part of the payments comes from the government. The use of private sector makes this
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 9
whole thing ideal and practical. After sometime, the national health insurance model will
also become necessary since this will reduce the cost of charges as well as it will also
guarantee continuity. The fact that this wills the first of its kind to be implemented means
Operations Performance
The new service line will have great positive impact on the way the way health industry
operates. There is value for money in that the amount that is needed to initiate the project is
actually lower than the total value that is derived the project. The major incentives in this
project are the fact it will be able to slash the cost of treatment.
Inpatient facilities
Inpatient facilities account for the highest amount of spending on the US currently. The
cost has been rising over the years but this is not to mean that hospitals should not engage in
inpatient services (Dallet., 2013). They only need to know how to control costs and increase
revenues for the struggling sector. Outpatient costs need efficient and effective management
to thrive and create additional revenues. These services will add value to the customers by
ensuring that the company has all the necessary technology and expertise to deal with their
cases. The cost of advanced technology only attributes to 4.9% of total increase in average
costs per discharge (Fauntleroy, 2012). This shows that with the right kind of technology, we
can be in a position to serve our clients better. Devices and supplies defined as the items
needed for taking care of patients should be reduced to sustainable levels as they account for
the highest increase in annual average costs (Fauntleroy, 2012). This will be done by
collaborating with physicians, employers, staff and also suppliers to ensure that all efforts are
channeled to reduce these costs. The different payers include health plans, governments,
commissioners and employers. The volume of patients can be increased by creating room for
FEASIBILITY STUDY OF NEW LINE OF SERVICE IN HEALTH INDUSTRY 10
patients admitted from other hospitals. This can only be done with the right technology and
expertise too. The inpatient facilities will work closely with doctors in determining the
available capacity at a time and this information will be shared among readmitting hospitals
Outpatient services
These services provide us with the opportunity to serve them at a cheaper cost yet with
the highest quality of care possible. Staff will be employed based on projected volume of
work done through appointments with available doctors (Shepperd et al., 2009). By
scheduling patients for appointments, the hospital is able to determine the amount of revenues
based on the appointments made in for example a month. This will ensure that patients are
always served according to their needs and as a result, they remain loyal to the medical
facility. The Affordable Care Act gives conditions that put consumers in charge of their
healthcare. They have conditions that ensure that everyone has medical access (Fauntleroy,
2012). Abiding by these and making sure that payers abide by them, we are bound to receive
benefits from the same. The reduced costs should not affect us as we plan to have the best
facilities to deal with all types of patients. This includes ensuring we have the right kind of
medicine to cater for patient needs. The challenges faced include an increasing elderly
population coupled with chronic diseases associated with old age. The number of medical
specialists is also wanting evidenced by the amount of time taken for appointments (Dall et
al., 2013). The opportunity lies in training more personnel to be specialists annually. This
might take some time but as the elderly increase, the hospital will also be having more
By ensuring that the hospital has the necessary technology and expertise, there is a high
chance for success in the future. Increasing the number of specialists annually will work to
reduce wait times for appointments creating room for serving more patients within a shorter
duration of time while at the same time increasing revenues. Economics is applied here in
conducting marginal analysis. This underlies all cases of optimization i.e. allocating resources
that are scarce to minimize production costs for hospital outputs (Feldstein, 2012). It also
looks at revenue maximization given constrained budgets. Supply and demand analysis can
also be used to project future demand and what can be done to deal with the projections
(Feldstein, 2012). In this case, the increase in chronic cases justifies increasing the number of
specialists in the future. We are using marginal analysis to determine our competencies and
areas that we need to improve on to ensure least costs possible. These strategies are key to
ensuring a sustainable medical facility. The adjustments that may be needed in the future in
annually as they are a cost to the medical facility. This would only be done if the hospital has
References:
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Population And Growing Disease Burden Will Require Alarge And Specialized Health
Http://Dx.Doi.Org/10.1377/Hlthaff.2013.0714
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Shepperd, S., Doll, H., Angus, R. M., Clarke, M. J., Iliffe, S., Kalra, L., ...& Wilson, A. D.
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