Data-Driven Decision Making
Week 10: Data-Driven Decision-Making Health Care Administration
As you examined last week, simulation is a useful analytic tool that healthcare administration might use to help enhance healthcare delivery in their health services organization. While it is impossible to anticipate every uncertainty that may impact healthcare delivery in a health services organization, these analytic tools are valuable for informing the types of decision making you enact as a current or future healthcare administration leader.
1.This week, you continue examining simulation as an analytic technique for healthcare administration practice. You consider the strength and weaknesses for simulation distributions and continue to apply advanced simulation techniques to address healthcare administration practice problems.
· Analyze simulation distributions for healthcare administration practice
· Analyze strengths and weaknesses for simulation distributions
· Apply simulation techniques to healthcare administration practice
Note: To access this week’s required library resources, please click on the link to the Course Readings List, found in the Course Materials section of your Syllabus.
Albright, S. C., & Winston, W. L. (2017). Business analytics: Data analysis and decision making (6th ed.). Stamford, CT: Cengage Learning. Chapter 16, “Simulation Models”
Torabi, E., Froehle, C. M., Lindsell, C. J., Moomaw, C. J., Kanter, D., Kleindorfer, D., & Adeoye, O. (2016). Monte Carlo simulation modeling of a regional stroke team’s use of telemedicine. Academic Emergency Medicine, 23(1), 55–62. Note: Retrieved from the Walden Library databases.
Simulation of Telemedicine
It may come as no surprise that advances in technology have had a dramatic impact on healthcare delivery. Advances in health information technology, such as patient portals; electronic health records (EHRs) or electronic medical records (EMRs); and real-time coordination of patient care, etc., all have greatly contributed to enhancements in healthcare delivery. However, they too presented several challenges to healthcare administration leaders and clinical staff in how to best orient and implement such technology to enhance healthcare delivery.
One such advancement in healthcare technology concerns the use of telemedicine to provide patient care and treatment. While delivery of patient care is usually a direct transaction, interfacing with patients and physicians virtually, or at a distance, could greatly enhance how healthcare services are delivered for certain situations, such as disaster events or in rural locales.
1. For this Discussion, review the resources for this week. Reflect on the Torabi et al. (2016) article in the resources for this week, and consider the distributions the authors selected for the given simulation.
By Day 3
Post a description of the distributions selected by the authors in the Torabi et al. (2016) article, and then explain whether the distributions selected are appropriate for practice, and why. Explain what was done well in the study, as well as areas of weakness for the considerations described by the authors. Be specific, and provide examples.
By Day 5
Continue the Discussion and respond to your colleagues in one or more of the following ways:
· Ask a probing question, substantiated with additional background information, evidence, or research.
· Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.
· Offer and support an alternative perspective, using readings from the classroom or from your own research in the Walden Library.
· Validate an idea with your own experience and additional research.
· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.
· Expand on your colleagues’ postings by providing additional insights or contrasting perspectives based on readings and evidence.
Submission and Grading Information
To access your rubric:
Week 10 Discussion Rubric
Post by Day 3 and Respond by Day 5
To participate in this Discussion: Week 10 Discussion
More Advanced Simulation in Health Care
Simulation in health care often involves more than trivial skills. For example, modeling all outpatient clinic operations in a particular facility would probably involve the use of multiple probability distributions and many calculations. Verifying and validating the simulation requires even more technical prowess. Healthcare administration leaders and decision makers must have the knowledge, skill, and abilities to build and understand these simulations.
For this Assignment, review the resources for this week, and reflect on the advanced simulation techniques highlighted. Consider how these advanced simulation techniques might apply to specific simulation models in a health services organization, and then complete the problems assigned for the Assignment.
The Assignment: (3 pages)
· Complete Problem 45 (Prizdol prescription drug) on page 887 of your course text.
Note: You will be using Excel and @Risk for this Assignment.
Problem 45 on Textbook Pg 887
The annual demand for Prizodol, a prescription drug manufactured and marketed by the NuFeel Company, is normally distributed with mean 50,000 and standard deviation 12,000. Assume that demand during each of the next 10 years is an independent random number from this distribution. NuFeel needs to determine how large a Prizodol plant to build to maximize its expected profit over the next 10 years. If the company builds a plant that can produce x units of Prizodol per year, it will cost $16 for each of these x units. NuFeel will produce only the amount demanded each year, and each unit of Prizodol produced will sell for $3.70. Each unit of Prizodol produced incurs a variable production cost of $0.20. It costs $0.40 per year to operate a unit of capacity.
a. Among the capacity levels of 30,000, 35,000, 40,000, 45,000,50,000,55,000, and 60,000 units per year, which level maximizes expected profit?
Use simulation to answer this question.
b. Using the capacity from your answer to part a. NuFeel can be 95% certain that actual profit for the 10-year period will be between what two values?
By Day 7
Submit your answers and embedded analysis as a Microsoft Word management report.
Submission and Grading Information
To submit your completed Assignment for review and grading, do the following:
Please save your Assignment using the naming convention “WK10Assgn+last name+first initial. (extension)” as the name.
Click the Week 10 Assignment Rubric to review the Grading Criteria for the Assignment.
Click the Week 10 Assignment link. You will also be able to “View Rubric” for grading criteria from this area.
Next, from the Attach File area, click on the Browse My Computer button. Find the document you saved as “WK10Assgn+last name+first initial.(extension)” and click Open.
If applicable: From the Plagiarism Tools area, click the checkbox for I agree to submit my paper(s) to the Global Reference Database.
Click on the Submit button to complete your submission.
To access your rubric:
Week 10 Assignment Rubric
Check Your Assignment Draft for Authenticity
To check your Assignment draft for authenticity:
Submit your Week 10 Assignment draft and review the originality report.
Submit Your Assignment by Day 7
To submit your Assignment: Week 10 Assignment