Health Information System Cost-Benefit Analysis

Health Information System Cost-Benefit Analysis Professional Context
Meeting current and future needs means that health care managers must be able to analyze the costs and benefits of implementing new health information systems or taking on new health informatics projects. Cost-benefit analysis is a model that will help managers communicate and justify their projects. It is important for managers to translate the investment of health information technology into a benefit that the organization notices and feels.
This assignment provides an opportunity for you to complete a cost-benefit analysis of a health information system and justify your
recommendations for implementation, based on best practices.
Preparation
Leadership at Vila Health has asked for a cost-benefit analysis to address the pros and cons of having the newly acquired rural hospitals switch to the same health information system currently used by Vila Health.
Complete the Vila Health: HIMS Cost-Benefit Analysis interactive simulation, linked in the Resources. Gather information about the health information system being used by the main hospital. Speak with department heads to obtain their insights, and consider short- and long-term costs and benefits.

Instructions
1. Conduct a cost-benefit analysis to determine the feasibility of the proposed system upgrade. Use the “Cost-Benefit Analysis Spreadsheet
[XLSX],” linked in the resources, for your analysis.
2. Write an executive summary of your findings, recommendations, and rationale for your recommendations.
Format your executive summary using APA style.
• Use the APA Style Paper Template, linked in the Required Resources. An APA Style Paper Tutorial is also provided (linked in the Suggested
Resources) to help you in writing and formatting your executive summary. Be sure to include:
o A title page and references page. An abstract is not required.
o A running head on all pages.
o Appropriate section headings.
• Your executive summary should be 2–3 pages in length, not including the title page and references page.
Supporting Evidence
Cite at least two sources of credible scholarly or professional evidence to support your cost-benefit analysis.
Cost-Benefit Analysis
Note: The numbered requirements outlined below correspond to the grading criteria in the scoring guide. Be sure that your cost-benefit analysis addresses each point, at a minimum. You may also want to read the HIS Cost-Benefit Analysis Scoring Guide to better understand how each criterion will be assessed.
1. Identify the components of the health information system.

o Consider all system components that should be factored into a cost-benefit analysis.
2. Identify gaps between current health information technology and future needs.
o What effect might forecasted future needs have on present system integration decisions?
3. Analyze the costs of implementing an upgraded system.
o Identify all cost items that should be included in the analysis.
o Consider short- and long-term costs.
o Consider the relevant issues, objectives, and leadership decisions that should be factored into the analysis.
o What additional information could improve the analysis?
4. Analyze the benefits of implementing an upgraded system.
o Identify all cost items that should be included in the analysis.
o Consider short- and long-term benefits, as well as the potential benefits to the organization, including patient care.
o Consider the relevant issues, objectives, and leadership decisions that should be factored into the analysis.
o What additional information could improve the analysis?
5. Analyze the costs and benefits of not implementing an upgraded system.
o Consider the short- and long-term costs and potential benefits to the organization, including patient care.
o Consider the relevant issues, objectives, and leadership decisions that should be factored into the analysis.
o What additional information could improve the analysis?
6. Determine the impact of evolving business trends on system upgrade decisions.
o What business trends have the potential to drive future health care informatics and IT needs?
o How might these trends influence your cost-benefit analysis and project implementation recommendations?
o What evidence do you have to support your assertions and conclusions?
7. Make implementation recommendations based on your cost-benefit analysis.
o Justify your recommendations with well-reasoned rationale.
8. Write clearly and concisely, using correct grammar, mechanics, and APA formatting.
o Express your main points and conclusions coherently.
o Proofread your writing to minimize errors that could distract readers and make it more difficult for them to focus on the substance of your analysis.