Indiana University of Pennsylvania Jasper Gardens Case Study Discussion

I’m trying to study for my Business course and I need some help to understand this question.

Getting Started

This week’s case study comes from the long-term care delivery system.Jasper Gardens is a certified nursing home approved to provide skillednursing and rehabilitation services to the citizens of Hillsboro County.This week’s assignment addresses elements from your previous coursework in accounting and finance. It is designed to assess your competencein financial management and strategic planning. Both of these arecompetencies identified by employers and recognized by the AmericanCollege of Healthcare Executives (ACHE).

Upon successful completion of the course material, you will be able to:

Analyze financial information to support a recommendation.
Design strategies which address complex organizational issues within the healthcare industry.
Analyze potential impacts of decision making in situations both internal and external.
Integrate critical analysis to ensure healthcare organizational success.

Resources

Textbook: The Middleboro Casebook: Healthcare Strategy and Operations
Website: OCLS

Background Information

Capital City Visiting Nurses Association (VNA) and Hospice hasrequested that Jasper Gardens enter into a contractual relationship toprovide inpatient hospice services to Jasper residents. The organizationis able to do this under existing Medicare regulations involving itsskilled nursing facility (SNF). Capital City VNA and Hospice wouldprovide all staffing and direct patient services in this new unitlocated at Jasper Gardens. Jasper Gardens would provide a dedicatedwing, area, or building with private rooms for the patients, meals,general nursing supervision, and general services (housekeeping, etc.).They would pay Jasper Gardens a price per patient day to be negotiated.Jasper Gardens estimates that its direct costs would be approximately$75 per day for the services they have requested. Its pharmacy servicewould provide needed drugs and other durable medical equipment at costthat would be directly reimbursed to the pharmacy by Capital City VNAand Hospice. The initial estimate is that Jasper Gardens could add a newdedicated wing of four to eight private rooms at approximately $180,000per private room (minimum four).

Note the following additional information:

National studies indicated that approximately 55% of all individualswho die from cancer enroll in hospice services prior to their death.Non-cancer enrollees include individuals who died from heart disease(12%); dementia, including Alzheimer’s disease (11%); lung disease (8%);stroke (4%); kidney disease (3%); liver disease (2%); HIV/AIDS (0.6%);and other causes (11%).

On average, enrollees in a Medicare-certified hospice are enrolledfor approximately 68.5 days prior to death. Note that 31% of enrolleesdied or were discharged from hospice in seven days or less. Studies alsoindicate that most hospice care is “regular care” provided in apatient’s home based on periodic visits as needed.

Nationally, Medicare-certified patient care days are classified asroutine care (96%), continuous (24/7) home care (1%), inpatient respitecare (1%), and hospital general inpatient care (0.25%). These samestudies indicate that of all patients in a Medicare-certified hospice,approximately 85%, are covered by Medicare, 4% are covered by privateinsurance, and 6% are covered by Medicaid. Currently, the maximum ratepaid by Medicare is $150 per day of routine care, $850 per day forcontinuous home care, $160 per day for inpatient respite care, and $650per day for general inpatient care. Also, the total annual cost per casecannot exceed $23,000 per hospital enrollee.

Instructions

Review the rubric to make sure you understand the criteria for earning your grade.
Read “Case 8: Jasper Gardens” in the textbook.
Review the material within the Background Information section of this page.
You will be developing a case review report to address some highlighted issues.
1. The data needed for analysis is included in the case study.
  1. You should utilize this data to provide quantitative justification for your conclusions.
2. There needs to be, where appropriate, analysis of the data that supports your responses.
  1. Short answers to the questions will not be enough.
The report should be approximately five to seven pages in length.
1. It is to include a properly formatted title and reference page.
2. Be sure to use proper APA formatting for headings and citation of tables and graphs.
Address the following questions and provide appropriate quantitative justification to support your conclusions and recommendations:
1. Should Jasper Gardens agree to enter into this contractual relationship?
2. How large a unit should they offer?
3. What price per day should they negotiate with Capital City VNA and Hospice?
4. What is the general estimate of the positive and negative impacts of this unit on the nursing home?
Turn in your case review report to the instructor by using the Assignment submission page by the end of the workshop.