...Third-party and government payers are rapidly moving toward pay-for-performance approaches that emphasize the quality rather than the quantity of health care services. Pay-for-performance initiatives have the capability of significantly impacting reimbursements based on whether or not and to what extent certain performance outcomes are met. At the same time, health care providers and consumers are both positively and negatively affected by pay-for-performance programs. While the future of pay-for-performance programs is unknown, it can be assumed that health care providers will likely carry increased pressures with regard to outcome responsibilities. With the continual addition of regulations set forth by the Centers for Medicare and Medicaid Services (CMS), demands to consistently provide high-quality care will increase. Pay-for-Performance Pay-for-performance is a payment model that rewards physicians, hospitals, medical groups, and other healthcare providers with financial incentives based on performance on select measures (Epstein, 2012). These performance measures can cover various aspects of health care delivery including: clinical quality and safety outcomes, efficiency, health care access and availability of care, patient experience and satisfaction, cost of care, administrative compliance, and the adoption of health information technology (Richmond, 2013). By providing direct incentives, physicians and other health care professionals can engage in practices that will hopefully...
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...Effectiveness Data and Information Set (HEDIS) is a set of performance measures used to track the quality of healthcare. HEDIS was developed by the National Committee for Quality Assurance (NCQA) to allow consumers to compare managed care organizations (MCOs). According to NCQA, HEDIS allows consumers to compare healthcare plans as “apples to apples”, in other words HEDIS organizes data for equitable comparison. HEDIS collects data in five different areas including: 1. Effectiveness of Care 2. Access/Availability of Care 3. Experience of Care (Patient Satisfaction) 4. Utilization and Relative Resource Use 5. Health Plan Descriptive Information (Kohler, 2014). Why is collecting information in these particular areas so important? First and foremost, the data collected is a valuable resource for consumers. HEDIS publishes the State of Quality Healthcare Report annually, and HEDIS report cards grade MCOs on their overall performance. Consumers can also use HEDIS’s Quality Compass to easily compare healthcare plans based on their needs. HEDIS performance measures allow MCOs to determine their effectiveness at any given time. If any changes are detected, MCOs may want to enact quality improvement measures to improve outcomes. Furthermore, MCOs can use HEDIS data...
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...America’s health plans to measure performance on important dimensions of care and service. HEDIS consists of 81 measures across 5 domains of care, there are so many plans that use HEDIS and the measures are so specifically defined it can be used to make comparisons among plans. To ensure that HEDIS stays current the National Committee of Quality Assurance (NCQA) has established a process to evolve the measurement set for each year through its committee on performance measurement. The National Committee of Quality Assurance...
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...growing interest in the use of healthcare measures to monitor and evaluate health system quality and performance. A measure is a summary statistic used to give an indication of a process that cannot be measured directly. For example, the quality of care a patient receives is difficult to measure directly, however, we can measure particular processes (such as adherence to protocols) or outcomes related to quality of care. The use of quality data has led to improvements in operations, finances, and clinical outcomes. This discussion will center on a few topics that are vital to health care measures and system quality and performance. The foundation of measures and reasons for their use will be discussed in great detail. We must understand the reason for using measures in health care and their relationship to providers, policy makers, and administrators. Another topic that is vital to the discussion of measures is the use of data to improve organizational processes and thus the outcome of improvements. Although healthcare institutions do not generally make use of quality data and measurements to improve their profit margins, there are many ways they can utilize such measures to enhance their organizational performances. Finally, the discussion will come full circle to show how solidifying the relationship between quality standards and operational and financial efficiencies will lead benefits in long-term strategic planning. Why are measures used? Who do they benefit? How do they...
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...Google’s Innovation Metrics Meghan Schuetz ORG530: Business Ethics and Sustainability Colorado State University – Global Campus Professor Victoria Figiel June 3, 2013 Google’s Innovation Metrics Metrics are an important tool used to monitor the performance of the success of innovation. Managers must select metrics based on the strategy of their company and their current need. This requires a good model to manage innovation and a balanced scorecard of a business innovation model that describes inputs, processes, outputs, and outcome from generating ideas (Module 5, 2013). The innovation process will be ineffective if leaders attempt to measure the wrong things at the wrong time. Yet innovation has to be measured or else it cannot be managed (Davila, Epstein & Shelton, 2013). A closer look at Google Corporation will be done showing what innovation metrics are relevant to their organization and why. Google Corporation Inputs. Tangible and intangible elements that are devoted to a company’s innovation effort are considered inputs (Davila, Epstein & Shelton, 2013). Google has a very unique corporate culture that’s main goal is to keep employees happy and maintain productivity. It has been documented that a large portion of what Google does is based off of data (Bulygo, 2013). Google has created tests that they use to create an environment that facilitates happiness. This is important because happy employees tend to be more creative and productive. An example...
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...Welfare Economics continued Market efficiency How to measure the total economic well-being of a society? Suppose there is a all-powerful, well-intentioned dictator called a social planner who can allocate goods among members of society. This social planner wants to maximize the welfare of everyone in society. Should the social planner allow the economy to reach an equilibrium by itself and stay there, or alter the equilibrium in some way? How to measure welfare of everyone in society? One measure is the sum of everyone’s surplus, called total surplus. This is consumer surplus plus producer surplus. Since consumer surplus measures the benefit consumers receive from participating in a market, and producer surplus measures the benefit producers receive from participating in a market, total surplus measures the sum of all individual benefits from participating in a market. Consumer surplus distortion of the market, amount paid by buyers equals amount received by sellers. So under these conditions, the total surplus equals Total surplus = total value to buyers − total cost to sellers. An allocation is efficient if it maximizes total surplus. This means that the difference between value to buyers and cost to sellers is maximized. It is maximized when every buyer whose value of a good is higher than the cost to a seller of the good, buys the good from a seller whose cost is lower than the buyer’s value. An allocation is inefficient if either a good is not being produced by sellers with lowest...
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...transferable goods but instead it refers those intangible benefits that a consumer receives when purchasing a good. It is an abstract concept that cannot necessarily be defined due to its “inherent characteristics”. This concept of Service Quality (SQ) cannot easily be measured as it is “defined as a customer’s evaluative judgement regarding the degree of superiority of service performance” (Zeithaml 1988). Furthermore, it could be said that SQ is solely based on a customer view and perceptions in relation to intangibility, inseparability, heterogeneity and perishiability. Both inseparability and heterogeneity are similar in nature as SQ is integrated in the outcome of these areas and as such will be discussed together. The conceptual nature of SQ disallows these factors to be measured as they are challenging to comprehend and measure in relation to key industry standards. However, in recent times more progressive technologies and concepts have evolved to better understand SQ and help implement it effectively in businesses. An example of this would be the development of the 22-item instrument, SERVQUAL. SERVQUAL is essentially a survey that facilitates the provision of different customer perceptions and knowledge on what is perceived to be a high quality service in an industry. Difficulties in measuring SQ: Intangibility Measuring the concept of quality in relation to services is exigent. Consumers often value quality based on their perceptions of what they receive to their...
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...compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. Learning Outcomes After studying this chapter, the student should be able to: L01 Gain an appreciation of the link from consumption to value to satisfaction. L02 Discuss the relative importance of satisfaction and value in consumer behavior. L03 Know that emotions other than satisfaction can affect postconsumption behavior. L04 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. L04 Understand problems with commonly applied satisfaction measures. L06 Describe some ways that consumers dispose of products. Suggested Lecture Opener When we think about consumer satisfaction and the consumption process, the link seems clear. Businesses with high levels of consumer satisfaction succeed, and those with low levels fail. However, this isn’t always the case. According to a major recent survey, the social networking website Facebook ranks in the bottom five percent of consumer satisfaction with privately held companies in the U.S. Respondents had no shortage of complaints about the site’s performance and user-friendliness. Yet, Facebook continues to grow at an explosive rate. How is this? Consumers who want to participate in social...
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...Pay for Performance Incentive Programs in Healthcare: Market Dynamics and Business Process Executive Briefing AUTHOR Geoffrey Baker, MBA President, Med-Vantage® Inc. 1 California Street, Suite 2800 San Francisco, California 94111 CONTRIBUTORS John Haughton, MD, MS Founder, DocSite LLC 540 Main Street Winchester, Massachusetts 01890 Peter Mongroo Director, Healthcare Industries Markets Oracle Corporation 500 Oracle Parkway Redwood Shores, California 94065 A Research Report sponsored by ViPSSM, Inc. in partnership with Med-Vantage® 2003 Table of Contents Introduction.......................................................................................................................2 Goals and Motivations behind Pay for Performance..................................................................4 Market Adoption .................................................................................................................5 Funding and Incentives .......................................................................................................7 Measuring Performance: Physicians and Hospitals..................................................................10 P4P Operations and Business Processes for Health Plans.........................................................12 Key Lessons Learned and Critical Success Factors ..................................................................14 Conclusion...........................................................
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...Dell Computer Corporation Performance Metrics Every component of a corporate sustainability model should be associated with performance indicators such as inputs, processes, outputs, and outcomes. By determining the appropriate performance measures needed for each component of the sustainability model, companies can evaluate the performance and financial benefits of the sustainability initiatives. Dell Computer Corporation knew that balance is especially important in performance measurement and wanted to make a change to improve their reputation and also their consumer sales. The performance metrics that are most valuable to Dell from the inputs are mostly from the business context performance measures which include number and size of competition, diversity from competition, market size, and their competitive position within the industry should be the most important to them since they have so much competition in the industry (Epstein, 2008, p. 169). One way that I found through research that Dell has come up with to stay unique and making them competitive with their competition was by creating “the Dell Precision T5500 and T7500 which deliver up to 90 percent better multi-threaded digital content creation application performance versus previous generation systems” (Bolen, 2009). “The new systems are purpose-engineered for professionals in engineering, media, entertainment, biosciences, exploration, economic modeling and risk analysis” (Bolen, 2009). Dell feels that this will...
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...******* The Ohio State University 2012 Dissertation Committee: Dr. Jonathan Fox, Advisor Dr. Catherine P. Montalto Dr. Robert Scharff Dr. Caezilia Loibl Copyright by Jodi C. Letkiewicz 2012 ii ABSTRACT The objective of this paper is to determine whether financial literacy can moderate the effects that self-control has on financial outcomes. Financial literacy is an oft cited solution to the myriad financial complexities faced by consumers. If financial literacy is effective it should help consumers overcome issues of self-control to encourage more fiscally responsible behaviors. Both economic and psychological theories of self-control are explored, and a conceptual model using the Big Five personality trait of conscientiousness as a measure of self-control is utilized. Data for this study come from the 1997 National Longitudinal Survey of Youth (NLSY). Asset data in the study was collected in Rounds 9-13 when the respondents were 25 years old. The measure of conscientiousness was collected in Round 13 as part of the Ten-Item Personality Inventory (TIPI). Financial literacy was assessed using three questions, collected in Round 11, on compounding interest, inflation, and stock risk. Five financial variables are analyzed in this study in an effort to provide a broad view of the financial standing of the respondents. The five dependent variables modeled in this...
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...Hayes The Trust Imperative: Performance Improvement through Productive Relationships Stephen Hacker and Marsha Willard Customer Satisfaction Measurement and Management Earl Naumann and Kathleen Giel Performance Measurement Explained: Designing and Implementing Your State-of-the-Art System Bjørn Andersen and Tom Fagerhaug Value Leadership: Winning Competitive Advantage in the Information Age Michael C. Harris To request a complimentary catalog of ASQ Quality Press publications, call 800-248-1946, or visit our Web site at http://qualitypress.asq.org . Linking Customer and Employee Satisfaction to the Bottom Line A Comprehensive Guide to Establishing the Impact of Customer and Employee Satisfaction on Critical Business Outcomes Derek R. Allen and Morris Wilburn ASQ Quality Press Milwaukee, Wisconsin Linking Customer and Employee Satisfaction to the Bottom Line Derek R. Allen and Morris Wilburn Library of Congress Cataloging-in-Publication Data Allen, Derek R., 1959– Linking customer and employee satisfaction to the bottom line: a comprehensive guide to establishing the impact of customer and employee satisfaction on critical...
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...Main topics/concepts * Scarcity * Scarcity means that society has limited resources and cannot produce all the goods and services people want. * Opportunity costs * The opportunity cost of an item is what you give up to obtain that item. * Equity–efficiency trade off * Individual level * Allocation of time between work and leisure * Society level * Guns vs. Butter is the classic trade-off between production of consumption goods and military spending * The efficiency versus equity trade-off * Efficiency: Society gets the most that it can from its scarce resources. * Equity: The benefits of those resources are distributed fairly among the members of society. * Models: Circular flow diagram and PPF * The circular-flow diagram shows how dollars flow through markets among households and firms in an economy * Firms (Produce and sell goods and services) * Households (Buy and consume goods and services.) * The production possibilities frontier (PPF) is a graph showing the combinations of output that an economy can possibly produce given * the available factors of production; and * the available production technology. * Normative vs. positive statements * Positive statements are about how the world is. * Normative statements are about how the world ought to be. * When economists make normative statements, they are...
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...hospital or health care facility. Consumers of healthcare aren’t receiving satisfaction from the care they receive based on the amount they paid for it, they are more interested in the quality of care and how such care is delivered. When a patient is sick and visits a hospital, most of the time, the facility must not only care for the patient but also for their loved ones, the family and friends must be carried along in the care delivery choice and process. It is imperative that organizations meet the needs of these consumers and constantly strive to improve on the quality of care. According to Ransom et. al (2008), there is six dimensions of quality organizations should address when planning improvement strategies. Quality care should be safe, effective, efficient, timely, patient centered, and equitable. What is the difference between performance measurement and quality improvement processes: Quality Improvement is a process used to enhance the quality of care provided and performance measurement is a tool by which organizations measure whether the goal for quality improvement was actually achieved (Koss, Hanold, & Loeb, 2002, p. 82). Performance measures afford organizations the ability to continuously monitor and assess care delivery processes and goals, while providing necessary information to consumers. Quality Improvement process is a distinct management process used by organizations in a coordinated manner to consistently meet consumers’ needs (Riley, Moran, Corso, Beitsch...
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...Equity Perspective Brand equity can be viewed from several different perspectives. The hard-line perspective is that of financial outcomes which examine price premium. That is, how much more will a consumer pay for a product or service that is branded over a product or service that is generic? A softer perspective is that of brand extension where consideration is given to the value that a brand lends to the introduction of other products, or considers the reverse dynamic of the impact of a new product or service on the existing brand. This following steps address a third perspective - customer-based. Determine Brand Equity Research Goals Brand equity market research falls into one of three camps: Tracking, exploring change, and/or extending brand power. Market research that focuses on tracking makes comparison among competitive brands or products against a benchmark. When exploring change is the research goal, customer brand attitude is tapped regarding branding decisions that might result in repositioning or renaming products or services. A deeper examination of extending brand power is carried out when substantive additions to a brand are considered. Each of these research goals requires a different tact. Understand Customer Brand Attitude A customer-based perspective in the measurement of brand equity focuses on the experiences that consumers have with a brand. The stronger the brand, the stronger the customer's attitude toward the products or services associated with the...
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