Business Proposal: Proposal to Purchase a Major IT System

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¶ … New it System

Management Briefing Memorandum:

Implementation of CRM at Helen Markulus, CIO

Implementation of new Customer Relationship Management (CRM) system for Patient Retention and Satisfaction

Project Description

The University of Arizona Medical Center is a leading provider of healthcare services for the Southern Arizona area in addition to be one of the leading university hospitals globally in fields of cardiology, gerontology and orthopedic research. This unique balance of service and research has given the Medical Center the ability to attract patients from the region, in addition to globally who seek treatment in the areas of primary research. Recent analysis indicates that the experiences have been satisfactory, with surveys of patents discharged showing 70% would recommend the Medical Center again. What is troubling however is that patients are not recommending the Medical Center and often not returning for second or third surgeries, choosing to travel to Phoenix, San Diego or Los Angeles for advanced treatment. The implementation of the CRM system for patient retention and satisfaction is specifically designed to provide administrators with insights into what factors most influence patients' decisions to recommend the Medical Center, in addition to defining and implementing retention strategies to ensure patients return for their treatment programs here. One of the areas the Medical Center wants to improve are the preventative health programs and outpatient services. Today the referral rate, based on a manually-based CRM system, is 32%. The proposed CRM system will be used for actively promoting these programs in addition to tracking incremental revenue generated. Integrating the proposed CRM system with the financial systems of the Medical Center will provide administrators with analytics and reporting showing the results of strategies to increase program and patient retention. CRM's effectiveness at increasing the revenue and profitability of healthcare providers has consistently been proven through greater patient retention, acquisition of new patients, and "winback" strategies of bringing original patients back to a healthcare center for further required treatments (Marketing Health Services, 2002).

The proposed CRM system for patient retention and satisfaction will provide a 360-degree view of prospective, current and past patients, providing administrators and marketing strategies to more effectively plan and implement marketing and services strategies. The proposed system also has the ability to measure patient satisfaction c correlate it back to how frequently they attend preventative health programs at the Medical Center further providing insights into how the center's performance at medical practices are influencing profitability and growth. As the proposed CRM system is a single system of record of all patient activity, it can be implemented to be in compliance to HIPAA standards. The integrating of CRM applications into healthcare workflows is increasingly requiring HIPAA compliance and reporting, which can be used as a catalyst for greater levels of process efficiency and performance (Burr, Patterson, Rolland, Ward, 2007).

In addition the proposed CRM system will be able to deliver the following benefits:

Determine effectiveness of patient referral programs

Measure patient satisfaction levels over time and evaluate which specific experiences delivered significant gains or losses in their assessments.

Create and continually maintain HIPAA-complaint patient data within a CRM system of record that can also be submitted for audits and compliance efforts with the U.S. government.

Provide patient-driven reviews and ratings of physicians and their performance. This will serve to improve ongoing training programs and the development of Measure profitability of each marketing automation strategy and program, tracking patient lifetime value and costs ot serve by treatment category. CRM systems designed to track the effectiveness of marketing automation programs indexed by financial results continue to show the potential to revolutionize how responsive healthcare providers have the potential to be (Marketing Health Services, 2002).

Analytics will be included to track patient satisfaction by treatment program area and also by practice area. Using metrics to show how patient satisfaction correlates to actual medical results achieved will also indicate how effectively physicians and the medical staff are contributing to successful treatment plans and how those results affect patient perception (Almunawari, Anshari, 2011).

Business Goals and Objectives

The University of Arizona Medical Center designated the CRM patient retention and satisfaction system to better understand why churn is occurring throughout the patient population, and why the center is losing patients to advanced treatment centers in neighboring metro cities in Arizona and California. The Medical Center, having comparable facilities and equipment, could have just as easily been chosen by these patients, yet wasn't. Current retention and new patient recruitment programs aren't delivering the results needed for the Medical Center to reach its revenue and profit objectives for the current fiscal year. Patient satisfactions cores have been dropping with complaints that treatment has become too standardized and formulaic. All of these factors point to the need to redefine the patient experience and better understand their needs.

Strategic Program Objectives:

To increase the level of patient satisfaction delivered on a consistent basis and reduce patient churn.

To measure patient satisfaction levels at entry, treatment and post-treatment

To determine which factors contribute most and least to patient satisfaction levels

To improve medical staff and physical patient experience management

To determine which factors that the medical staff and physicians have the most and least control over that impact positive patient experiences

To quantify the effects of ongoing patient training and determine how to reduce patient churn and increase long-term patient loyalty

To define the key success factors for advanced treatment programs and determine where the Medical Center is relative to competitors on these customer perceptions

To improve patient recruitment, retention and "winback: strategies through more effective management while keeping in compliance to government standards

To define a single system of record for all patient interactions

To streamline patient onboarding and reduce errors in admittance procedures

To automate all patient follow-up procedures to ensure greater accuracy, reduced errors and greater visibility into all financial records on their accounts

To combine the system of record with marketing automation applications to track overall marketing effectiveness and its contribution to revenue and profitability for the medical center

Projected Costs

Task

Projected Cost

Implementation Services (Training, Testing, Installation)

250,000

Hardware

20,000

Software

200,000

Maintenance Support (5 years)

50,000

Total Costs

520,000

Business Goal

Goal

Target

Increase patient recommendation levels

From 70% to 100%

Reduce admittance time and errors

Currently takes 2 hours; down to 30 minutes is the goal

Reduce patient churn

Now: 30% Target: 5%

Increase patient selection of Medical Center for Advanced Treatment

Now: 20%

Target: 70%

Increase the effectiveness of marketing automation programs

Current: 300 patient referrals a month

Goal: 2,000 patient referrals a month

Track Physician Satisfaction Ratings

Now: Nothing recorded

Goal: 100% coverage

Project Schedule

Milestone

Initiation

August, 1, 2013

Education beginning

September 1, 2013

Hardware Build onsite

September 15,2013

Build & Test Workflow

November 1, 2013

Integrated Testing

December 1,2013

Pre-Live Assessment

January 5, 2014

Go-Live

February 1, 2014

Communication

For any enterprise project to succeed there must be close coordination of the entire cross-functional team. With the proposed CRM patient retention and satisfaction implementation the following forms of communication are recommended:

Email, Conference calls, Phone calls, Fax

Weekly Status calls -- Weekly calls will be scheduled for the duration of the project. The meeting agenda and issues list will be sent by the facilitator.

Issues List -- the issues list will be maintained by the CRM Project Manager and will be updated and reviewed during the weekly status call.

Meeting minutes -- Meeting minutes will be sent by the facilitator of the meeting within 48 hours following the completion of the meeting.

Onsite Visits -- Agenda and Tasks list will be sent to University of Arizona Medical Center seven business days prior to an onsite visit.

Trip reports will be sent 7 days following each site visit.

It is recommended that the communications path outlined below be followed:

The Project Managers… [END OF PREVIEW]

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Proposal to Purchase a Major IT System.  (2013, June 23).  Retrieved May 25, 2019, from https://www.essaytown.com/subjects/paper/proposal-purchase-major-system/7908698

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"Proposal to Purchase a Major IT System."  Essaytown.com.  June 23, 2013.  Accessed May 25, 2019.
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