HEALTH POLICY2As a clinical manager of an urgent care center, patient satisfaction is paramount. Therefore it is important to increase quality and decrease issues that may be affecting that. The purpose of this paper will be to examine three quality initiatives to increase patient satisfaction and potentially reduce healthcare cost. Secondly, the paper will review health insurance options, on the position to accept Medicare or Medicaid as potential pay sources for the center. Quality Initiative and Patient SatisfactionThere are several quality initiatives that will increase patient satisfaction as well as potentially reduce healthcare costs. Using information technology will aid in this initiative. Improving the information technology will improve the safety of the patient’s personal information resulting in higher quality of care. Adoption of the appropriate use helps aid and enables secure and private transfer of information. The use of information technology will improve health quality and reduce medical errors. This initiative will have a major effect on small community hospital systems who don’t always have access to the information needed to implement the newer age technology. This new system will make sure that there is an appropriate
2Use the format in Exhibit 8–2 to compute the ending LIFO inventory and the cost of goods sold, using same assumptions.Assumptions LIFO Inventory EffectSales 900 units @ $100$90,000Cost of Sales:Beginning Inventory500 units @ $50=$25,000 Plus: Purchases400 units @ $50=$20,000100 units @ $65=$ 6,500400 units @ $85=$34,000$60,500Subtotal$85,500Less: Ending Inventory500 units @ $50=($25,000)Cost of Sales$60,500Gross Profit $29,500Also compute the cost of goods sold percentage of sales.Cost of goods sold percentage of sales = (Cost of Sales ÷ Sales) x 100($60,500 ÷ $90,000) x 100= 67.2%Comment on the difference in outcomes.Based on the above calculations, the FIFO method would be better because it yields more profit. As the cost of goods sold increases (as can be seen in the LIFO calculations), the gross profit decreases. With the LIFO method the cost of sales is more than with the FIFO method. The higher the cost of goods sold as a percentage of sale, the less profit is generated.