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The healthcare industry is impacted by economic factors as heavily as any other industry; therefore, a microeconomic and macroeconomic perspective is important for healthcare management professionals to have. The key is to determine what and how theories of economics and changes in legislation will impact healthcare organizations. Your assessment for this course, a policy research and organizational analysis report, is divided into two parts. The first is an analysis of microeconomic and macroeconomic principles and their impact on healthcare markets, healthcare service, and organizations. The first part will require you to apply the knowledge you have gained throughout this course, as well as to research current economic environments and legislative changes to gauge the impact on the healthcare industry. The second part will require you to apply the results of your analysis from the first part to a U.S.-based healthcare organization of your choice, as you discuss the impact of economic theories and legislative changes on the specific organization. You will make a few general recommendations for your selected organization that will help them plan for and mitigate negative economic and fiscal impact. These assessments will allow you to examine the relationships between economics, legislative changes and policies, healthcare industries, and individual organizations, a skill that will benefit you as you participate in the management of healthcare departments, organizations, and projects. You will select an organization for your second assessment using the U.S. Securities and Exchange Commission’s Company Filings website to ensure that you will have access to the healthcare organization’s financial information. You will choose your organization in Milestone One for instructor approval. This assessment addresses the following course outcomes: Analyze how organizations utilize key microeconomic and macroeconomic principles to guide strategic planning and decision making in healthcare Differentiate between nonprofit and for-profit healthcare organizations in terms of monetary and fiscal policy Analyze healthcare financial statements through the application of demand theory and market behavior Determine the impact of key economic legislative changes on healthcare policy Analyze the relationship between economic policy and disparities in healthcare utilizing current research Prompt Your policy research and organizational analysis should answer the following prompt: What is the relationship between economic policy changes, the market, and availability of healthcare? How does this relationship impact specific organizations? Why do organizations in healthcare utilize economic and financial theories to guide strategic planning, and how do these actions impact disparities of care? Specifically, the following critical elements must be addressed: I. Introduction: What is the purpose, scope, and subject of your report? II. Economic Theories and Principles: A. Economic Disparities: Analyze the relationship between the financial well-being of the industry and availability of healthcare, in consideration of market and demand theories. B. Economic Theories: What economic theories are most useful when applied to the healthcare industry and why? C. Use of Economic Principles: Why do organizations utilize economic principles to guide strategic short-term and long-term decision making? III. For-Profit and Nonprofit: A. Financial Differentiation: What differentiates for-profit and nonprofit healthcare organizations financially? What characteristics of each type of healthcare organization make the organizations different? B. Economic Differentiation: What differentiates for-profit and nonprofit healthcare in terms of economic policies and legislation? What key recent and current economic policies impact each? IV. Policy, Changes, and Disparities: A. Economic Policy and Disparities in Care: Using current research and information (within the last five years), analyze the relationship between economic policy and disparities in care. How are they connected? How do they differ? B. Policy Changes: What impact do recent legislative changes have on healthcare economic policy in general? [ C. Disparities Planning: Why are disparities of care factored into healthcare strategic planning? Explain your reasoning and provide examples for support where appropriate. V. Organizational Impact and Recommendations: A. Organization Introduction: What organization is the focus of your report, the sub-industry or type of organization it belongs to (home care, hospital, etc.), and what is the financial background of the organization? B. Nonprofit or For-Profit: Is the organization you selected a nonprofit or a for-profit? What differences will this make in terms of economic policy impact? VI. Financials, Market, and Demand: A. Demand Theory: Explain how demand theory is reflected in the organizational financial statements. B. Market Behavior Impact: Explain how and why market behavior affects the financial statements at various times throughout the calendar year for your organization. VII. Economic Legislative Changes: A. Legislative Changes: Considering the economic and legislative changes you researched, what changes are most likely to impact your organization, and why? B. Policy Changes and Impact: Considering the legislative changes and type of organization you have selected, what possible organizational policies may result? Discuss the possible resulting policy changes that may occur within the organization. What is, or will be, the impact of these policy and legislative changes on your organization? C. Statement Impact: In what ways would you expect to see the financial statements to be impacted because of these changes, and why? D. Potential Disparities: Would the legislative changes cause disparities in care that could further impact your organization, or that your organization could plan to combat? How would you recommend planning for these?
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