Budget and revenue
Based on Krona’s budget, a wellness program will have a significant effect on the revenue of the hospital, and this is if the program is to include outpatient revenue, home health revenue, and pharmacy revenue. For outpatient revenue, the wellness program will increase the budgetary projections in revenue in outpatient care. Similarly, the program will also have an incremental projection effect on home health revenue and pharmacy revenue. This is based on the fact that wellness may have a strain on resources in outpatient, home care, and pharmacy departments. For the inpatient revenue to increase, there should be an increment in the services provided by the wellness program. The increased rates of readmission may affect the inpatient revenue by increasing it. On the other hand, the outpatient services can increase reimbursement in a wellness center as such services will be in demand. Last but not least, the management should consider a cut on the expenses to increase revenue (Zelman, 2015).
Discussion two: Consultation to Krona
The revenue cycle can influence the building of a new hospital, and this will only happen if such a cycle is considered to be healthy. In this case, the revenues received should be able to, at minimum, cover all the expenses. If this persists, the facility will then be said to be a going concern as it will now be profitable.
On the other hand, increased outpatient services will be required to improve revenue in a bundled care, accountable care, value-based environment as it will lead to a reduction in cost in the long run. The lower the costs or expenses involved, the higher the revenues (Penner, 2013).
Conversely, there are three main ethical concerns in the new billing environment. One of them is double payment. The facility may end up charging a client and the insurance company the same amount of money, hence leading to double payment. Apart from that, there is the aspect of equal treatment whereby some people are charged more than others. Last but not least, the other ethical concern is profit-making. Some facilities may overcharge their patients so as to increase on profits.