NURS FPX 6612 Assessment 4 Cost Savings Analysis

Cost Savings Analysis

This report provides an executive summary highlighting a cost-savings analysis based on a structured spreadsheet for the senior care coordinator role. The analysis illustrates how strategic implementation of care coordination can positively impact the organization’s financial sustainability. By integrating Health Information Technology (HIT), particularly in domains like preventive care, telehealth, and electronic health records (EHR), significant savings can be achieved while simultaneously improving patient outcomes. The spreadsheet reflects the economic benefits derived from streamlining healthcare delivery through technology-assisted care coordination.

The following table summarizes the cost-saving elements that were analyzed:

Each intervention was selected for its potential to streamline care and reduce redundancy. Preventive care initiatives reduce long-term expenses by catching illnesses early or preventing them altogether. For instance, an $8,000 annual saving is projected with the implementation of these programs. Care transition enhancements are estimated to cut expenses by $5,000 annually by minimizing readmission rates and improving discharge planning (Abraham et al., 2022). Shifting from traditional in-person visits to virtual consultations via telehealth services can result in $3,000 in yearly savings, primarily by lowering logistical and administrative costs. Finally, optimizing EHR systems can yield $6,500 in savings by improving workflow efficiency and reducing documentation errors.

Ways in Which Care Coordination Can Produce Cost Savings

Care coordination, defined as the collaborative delivery of healthcare services by a multidisciplinary team, plays a pivotal role in minimizing costs. It offers a proactive approach by addressing patient needs across various touchpoints. A key area where cost savings manifest is in the prevention of disease. Investing in prevention programs—though initially more expensive—can lead to a significant reduction in future healthcare expenditures. For example, Dobson et al. (2020) noted that preventive care investments constitute just 2% of the total costs incurred during the COVID-19 pandemic, demonstrating long-term economic advantages.

Additionally, managing chronic illnesses through coordinated care leads to decreased emergency visits and better medication adherence. Individuals with complex conditions benefit from a collaborative approach that includes professionals such as nurses, dietitians, and mental health counselors. Caskey et al. (2019) found that Medicaid expenditures for children and youth with chronic diseases dropped from $1,633 to $1,341 with integrated care coordination—indicating the model’s cost-effectiveness.

NURS FPX 6612 Assessment 4 Cost Savings Analysis

Moreover, leveraging HIT through optimized EHRs can substantially cut down costs by eliminating redundant tests and ensuring that clinicians have access to complete patient histories. Kumar et al. (2022) estimated annual savings between $29.6 billion and $38.2 billion due to these enhancements. Improved care transitions also play a significant role in reducing readmissions. Education during discharge and proper follow-up can prevent complications and the need for rehospitalization, thereby saving institutional resources (Tomlinson et al., 2020).

These cost-saving mechanisms operate under specific assumptions: that care coordination is appropriately tailored to patient populations, that HIT systems are fully integrated and functional, and that patients actively engage in their care plans. These underlying factors are essential for successful outcomes and long-term sustainability.

Care Coordination, Improved Health Consumerism, and Positive Health Outcomes

Care coordination not only drives cost reduction but also enhances health consumerism by empowering patients to take charge of their own care. As patients become more involved in managing their conditions—from acute illness to chronic disease—they are more likely to adhere to treatment protocols, attend follow-up appointments, and adopt healthier lifestyles. Vogus et al. (2020) emphasized how patient empowerment through coordinated care correlates with improved treatment adherence and clinical outcomes.

Furthermore, addressing social determinants of health and customizing care plans makes coordination more effective. Care that incorporates patient-specific factors—such as socioeconomic status, lifestyle habits, and education level—results in more effective and equitable interventions. Karam et al. (2021) suggested that such person-centered models contribute significantly to favorable health outcomes, particularly when implemented in preventive and early intervention frameworks.

NURS FPX 6612 Assessment 4 Cost Savings Analysis

The use of technology further strengthens these efforts. Through digital platforms such as telehealth and EHR systems, patients maintain stronger links to their care teams, which enhances communication, encourages follow-up, and fosters accountability. Crowley et al. (2022) found that technology-supported coordination significantly improves chronic disease control, specifically for conditions like type 2 diabetes.

In terms of gathering actionable data, care coordination within models like Accountable Care Organizations (ACOs) enhances the collection of evidence-based information. ACOs rely on a collaborative care model where seamless information exchange among providers is essential. According to Coran et al. (2021), patient risk stratification in ACOs facilitates personalized care planning and supports the identification of cost-saving opportunities through targeted interventions.

Health Information Exchanges (HIEs) complement these efforts by allowing secure and real-time sharing of patient data among various care providers. Kharrazi et al. (2023) highlighted that HIE systems not only reduce redundancy but also allow for timely decision-making. Fraze et al. (2020) added that adopting population health strategies within ACOs further enhances data-driven care, thereby aligning with the goals of value-based care models that prioritize quality over quantity.

By strategically leveraging care coordination and technology, healthcare systems can increase efficiency, reduce costs, and enhance patient satisfaction. These strategies create a feedback loop where improved data collection feeds better care planning, which in turn leads to improved outcomes and additional cost savings.

References

Abraham, J., Meng, A., Tripathy, S., Kitsiou, S., & Kannampallil, T. (2022). Effect of health information technology (HIT)-based discharge transition interventions on patient readmissions and emergency room visits: A systematic review. Journal of the American Medical Informatics Association. https://doi.org/10.1093/jamia/ocac013

Caskey, R., Moran, K., Touchette, D., Martin, M., Munoz, G., Kanabar, P., & Van Voorhees, B. (2019). Effect of comprehensive care coordination on Medicaid expenditures compared with usual care among children and youth with chronic disease. JAMA Network Open, 2(10). https://doi.org/10.1001/jamanetworkopen.2019.12604

Coran, J. J., Schario, M. E., & Pronovost, P. J. (2021). Stratifying for value: An updated population health risk stratification approach. Population Health Management. https://doi.org/10.1089/pop.2021.0096

Crowley, M. J., Tarkington, P. E., Bosworth, H. B., Jeffreys, A. S., Coffman, C. J., Maciejewski, M. L., … & Edelman, D. (2022). Effect of a comprehensive telehealth intervention vs telemonitoring and care coordination in patients with persistently poor type 2 diabetes control. JAMA Internal Medicine, 182(9), 943. https://doi.org/10.1001/jamainternmed.2022.2947

Dobson, A. P., Pimm, S. L., Hannah, L., Kaufman, L., Ahumada, J. A., Ando, A. W., … & Vale, M. M. (2020). Ecology and economics for pandemic prevention. Science, 369(6502), 379–381. https://doi.org/10.1126/science.abc3189

Fraze, T. K., Beidler, L. B., Briggs, A. T., Joynt Maddox, K. E., & Colla, C. H. (2020). Safety-net accountable care organizations: Advancing equity through delivery system reform. Health Affairs, 39(6), 946–954. https://doi.org/10.1377/hlthaff.2019.01557

Karam, M., Chouinard, M. C., Poitras, M. E., & Hudon, C. (2021). Patient-centered care and outcomes: A systematic review of the literature. BMC Family Practice, 22, 150. https://doi.org/10.1186/s12875-021-01498-3

Kharrazi, H., Zhang, Y., & Lasser, E. C. (2023). Health Information Exchange (HIE) utilization and hospital quality metrics: A review. Journal of Biomedical Informatics, 137, 104364. https://doi.org/10.1016/j.jbi.2023.104364

Kumar, S., Calvo, R. A., & Patel, V. (2022). Optimizing electronic health records for improved care coordination and reduced cost: A systems review. Health Systems, 11(3), 246–260. https://doi.org/10.1057/s41306-022-00113-8

NURS FPX 6612 Assessment 4 Cost Savings Analysis

Tomlinson, J., Cheong, V., Forde, E., & Kraus, S. (2020). Supporting patient transitions from hospital to home: A systematic review of discharge interventions. Journal of General Internal Medicine, 35(2), 504–520. https://doi.org/10.1007/s11606-019-05302-6

Vogus, T. J., McClelland, L. E., & Lee, M. K. (2020). The impact of patient engagement in healthcare on outcomes. Medical Care Research and Review, 77(5), 489–502. https://doi.org/10.1177/1077558718777000