Template for the assignment :Finance on Business Plan

Table of Content

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Executive Summary……………………………………………………………………

Part 1: Business Case…………………………………………………………………..

Project title…………………………………………………………………………..

1.          Introduction    ……………………………………………………………………

2.          Project objectives………………………………………………………………

3.          Background    ……………………………………………………………………

Ø   Current practice

  4.   Internal Analysis………………………………………………………………

Ø   Situational analysis

Ø   Risk of infection

  5.   Strategic Analysis……………………………………………………………..

A.                      SWOT analysis

B.                       PESTELI analysis

C.                       Stakeholder analysis

6.   Economic Analysis on Option Appraisal……………….……………………..

Ø   Benefit analysis

Ø   Option comparison

7.  Financial appraisal ………………………………….………………………….

8.  Preferred option…………………………………….…………………………..

9.  Recommendation…………………………………….…………………………

10.  Conclusion………………………………………….…………………………...

Part 2: Reflective Statement…………….………………….…………………………

References…………………………………………………………………………….

 

Executive Summary

 

 

 

                                                       Word count: around 350

 

 

 

Managing Finance in Health and Social Care Organisations

An Evaluating Report for a Business Case

 

Part I: Business Case

Project Title

To replace the existing reusable suction tubing  with disposable one in Operating Theatre (OT) for the operation and the General Anaesthesia procedure (GA). in order to comply with the infection control measures and diminish reprocessing of reusable items to reduce staff workload and fully utilize the financial resources.

 

 

 

 

Project Objectives

One of the most common reasons for developing a business case is as a response to increasing workload or a need to introduce new methods into the service (Galloway, 2004).  The objectives of the project are faced with two big directions: cost saving and infection control.

Ø   To alleviate the manpower shortage problem

Ø   To reduce the costing when using disposable items by eliminating the re-processing of the reusable items

Ø   To improve standard of care by reducing the risk of cross infection when handling the soiled reusable items.

Ø   To catch up the modern trend in using the single use item in operaton.

Ø   To minimize staff exposing to chemical disinfectant so as to enhance occupational safety.

 

Background

Current practice

In daily operation, all the patients going to the OT for operation and 70 % of the patients need general anaesthesia . Therefore one or two pieces of Suction tubing will be used for each case. Wound infection or pneumonia may be induced by the uncleaned suction tubing which may  prolog patient’s hospital stay and increase the hospital expense for the prolong stay and the drug used . As a result, the disinfection of the soiled suction tubing is very important in order to diminish the risk of infection . After the operation, the OT nurse and the  operating theatre assistant (OTA )will send the used and soiled suction tubing to the instrument washing room. They connect the suction tubing to the water tape and perform the preliminary rinising and washing. Then they will pass these tubings for the instrument nurse and the General Service Assistant (GSA) for further washing either by hand or the washer. As there are over 30 tubings used everyday, and the machine has only two outlets for the tubing washing, so over 80% of the tubing are washed by hand. The cleanliness depends on the handlers, there is no standard time for washing, they just wash away the visible dirt such as blood or secretion. The concentration of the detergent is also hard to maintain for the manual washing. During re-processing, appropriate personal protective equipments (PPEs) must be worn to prevent cross infection. The workflow is shown on diagram 1.

 

Diagram 1: The workflow on the existing practice

 

 

 

4.  Internal Analysis

Situational analysis

Definition and Why to use?

 

 

Table 1: Situational analysis of the two circuits

	Current situation (using reusable suction tubing)	Future situation (using disposable suction tubing)
Service	Ø   Purchase yearly Ø   Reprocessing is required	Ø   Purchase yearly for each year’s stock Ø   No reprocessing is necessary
Patient	Ø   Sometimes visible dirt found Ø   Foul smell from the tubing especially those tubings used for the intestinal obstruction Ø   Higher chance of infection	Ø   Quality of tubing assured including the sterility, cleanliness and the odour free Ø
Staff	Ø   OT nurse Ø   OTA Ø   Instrument nurse Ø   GSA	Ø   OT nurse Ø   OTA
Consumable	Ø   Reusable suction tubing Ø   Plastic bags Ø   Sterilization indicators Ø   Personal protective equipment( PPEs)	Ø   Disposable suction tubing
Estimated cost (per year)	Ø   Personnel involved: Ø   OT nurse u  10% of the workload of OT Nurse~ HK$24,000 Ø       Instrument nurse u  10% of the workload of instrument Nurse~ HK$24,000 Ø   OTA u  (10% of the workload of one staff ~ $18,000) u  Instrument nurse u  GSA (10% of the workload of one staff ~ $8400) Ø   Consumable involved: Ø   Reusable suction tubing n   120 set per year ÞHK $90 per set Þ cost HK$ 10,800/ year n   plastic bag ~HK$ 1,500per year n   Sterilization indicator~HK$1,500 n   PPEs ~HK$1,000 n   Machine ( Washer, sealing machine, Sterilizer maintenance fee ~HK$10,000 Ø   Total costing per year: ~HK$89,700	Ø   Personnel involved: Ø   OT nurse u  5% of the workload of one staff ~ HK$ 12,000 Ø   OTA u  (5% of the workload of one staff ~HK $9,000                   Ø   Disposable suction tubing n   8,000set per year ÞHK$9.8 per set Þ cost HK$ 78,400/ year Ø   Medical waste: n   $5,000 per year                   Total costing per year: ~HK$83,400
Health policy	Ø   Infection risk on handling of soiled circuit Ø   Infection risk on the disinfection process	Ø   Infection risk on handling of soiled circuit Ø   Infection risk on handling medical waste

Situational analysis suggests:

 

 

Nevertheless

 

 

 

Risk of infection

 

 

 

 

5.  Strategic Analysis

I would like to use various analysis tools to examine the feasibilities of the new method of practice which includes:

A.        Strength, Weakness, Opportunity and Threat (SWOT) analysis

B.         Politics, Economic, Social, Technology, Legal, Environment, Information (PESTLEI) analysis

C.         Stakeholders analysis

 

 

A. SWOT analysis

Definition and why it is so important to use this analysis such as comply to th HK HA policy etc

 

 

 

 

Table 2: SWOT analysis on using disposable suction tubing

Strengths (internal)	Weakness (internal)
Opportunities (external)	Threats (external)

SWOT analysis suggests:

 

 

 

Nevertheless

 

 

B. PESTELI analysis

Definition and why it is so important to use this analysis such as comply to th HK HA policy etc

 

 

Table 3: PESTELI analysis in using disposable suction tubing

Political	Ø   Healthcare worker’s risk of infection is the big concerns. Ø   Labour Department will also assess varies types of occupational risks
Economics
Social
Technological
Environmental
Legal
Information

PESTELI analysis suggests:

.

Nevertheless

 

 

C. Stakeholder analysis

Definition and why it is so important to use this analysis such as comply to the HA policy etc

 

 

 

Table 4: Stakeholders analysis

Stakeholder	Involvement in issue	Interest in issue	Influence / Power on outcome	Attitude of stakeholder	Impact on stakeholder
Patient	Low Reason	Low Reason	Low Reason	Unclear Reason	High Reason
OT Nurse	High	High	Medium	Positive	Medium
Instrument nurse	High	High	Medium	Positive	Medium
OTA	High	High	Medium	Positive	Medium
GSA	High	High	low	Positive	Medium
Department	High	High	High	Positive	High

Please state reasons to support the result in the stakeholder analysis

 

 

Stakeholder analysis suggests:

 

 

Summary of the analysis tools

 

 

6.   Economic Analysis on option appraisal

Benefit analysis

In order to quantify the benefits of different types of suction tubing , a benefits criteria score is established. Five critical elements are identified by the highly involved parties including manager, nursing officer, the OT nurse and the OTA. Each of these scores is obtained by considering in the context of their decision made.

 

 

Table 5: Benefits criteria scores

Benefits	Measures	Importance
Quality of care		40
Flexibility		15
Workload		30
Acceptability		5
Occupational risk		10

 

Option comparison

The existing reusable suction tubing and two disposable suction tubing from two companies are being analyzed and shown in table 6.

Option A is the existing reusable suction tubing with inside diameter 7mm

Option B is a disposable circuit with the inside lumen 7mm diameter, same as the reusable suction tubing

Option C is a disposable circuit with smaller inside diameter of 6mm

Table 6: Option comparison

		Option A (Existing reusable suction tubing		Option B (7mm diameter)		Option C (6mm diameter)
Benefit	Weight	Score	Weight X score	Score	Weight X score	Score	Weight X score
Quality of care	40	6	240	9	360	9	360
Flexibility	15	6	70	9	135	7	105
Workload	30	6	180	9	270	9	270
Acceptability	5	5	25	10	50	10	50
Occupational risk	15	6	90	9	135	9	135
Totals			605		950		920

(Score are out of a maximum of 10, benefit criteria weights total 100)

 

7.  Financial appraisal

In cooperative with the HA’s annual plan, an effective financial management is a necessary ingredient to ensure the financial resources are properly utilized.  Front line managers should also have a financial awareness as their actions will also affect the finances of the organization (Bean & Hussey 2000).  To review the costing of the three options, table 7 will show the overall running cost.

 

Table 7: Running cost for the three options

Items	Option A	Option B	Option C
Manpower fee	HK$64,400	HK$ 21,000	HK$21,000
Consumable: Ø   Reusable suction tubing (HK$90/set, 120set/year) Ø   Plastic bag Ø   Sterilization indicator Ø   PPEs Ø   Machine maintenance fee:	HK$ 10,800       HK$1,500 HK$2,000   HK$1,000 HK$10,000	HK$78,400 (HK$9.8 /set,8,000set/year)	HK$72,000 (HK$9/set,8,000/year)
Medical waste		HK$5,000	HK$5,000
Total	HK$89,700	HK$83,400	HK$79,000

According to the Hong Kong Budget Plan (2005-06), the predicted inflation rate shows there will be a rise of 1.5% for the year.  Table 8 will review the option cost analysis for the coming five years.

 

 

 

Table 8: Option cost analysis

Option	Year 1	Year 2	Year 3	Year 4	Year 5	Total
A
B
C

In option A,

 

 

 

 

Table 9: Cost benefit analysis

Option	Average Cost /  Year	Benefit Weight	Benefit / Cost	Cost / Benefit
A		605
B		950
C		920

As shown in table 9, the preferred option should then be option B.

8.  Preferred Option

Explain

 

9.  Recommendation

 

 

10.  Conclusion

 

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