Amt2 Task 4

As CEO of Trinity community hospital, the following evaluation of an orthopedic center service line was reviewed and presented to the board of directors for their approval.

A.1 Demand

Trinity’s health needs assessment discovered that the community’s population is aging with an anticipated 15% of the population will be 65 or older in the next five years. Given the growth of the aging population, orthopedic services in the service area is also expected to grow. This service line is expected to increase by 46% in the next five years. Joint and spine procedures are also expected to increase by 30% for inpatient and 350% for outpatient procedures. Trinity’s diversification analysis revealed that an orthopedic service line is deficient in Trinity’s current portfolio of services. Dr. Joint, a Trinity board member, has opened an orthopedic surgery group branch office near the hospital campus where several of the surgeons have applied for privileges at the facility. As a Trinity affiliate and member of the board, Dr. Joint’s practice will drive utilization of orthopedic and surgical services at the facility.

A.2 International Healthcare Trends

The growth rate in Medicare eligible and Medicare spending will result in Trinity receiving less reimbursement from the government. This could result in patients experiencing access problems, depending on how well Trinity responds to lower than anticipated Medicare reimbursements and the impact it would have on the development of its orthopedic service line. According to The Advisory Board Company, a shift to value-based health care is a trend that orthopedic providers need to prepare for (Tassopoulos, 2015). This shift to value based health care will result in orthopedist needing to participate in bundled payments and penalties for readmissions from joint replacements. Bundle payments will shift from providers and hospitals receiving payment for each individual service provided to the patient to receiving payment in a...