Chapter One: Introduction
Background
Evidence-based management (EBMGT) is a decision-making method that uses research experience to provide information for organizational practice. In health organizations, EBMGT is usually used to guide the development of services and improve and deliver relevant decisions. This article aims to create a preliminary market analysis for the proposed elderly psychiatry department of the acute hospital (Fortuna et al., 2019). Market analysis will be based on evidence and rely on reliable sources to evaluate the needs and potential success of the new service line. This paper will focus on the population of four major areas, including the population in the service field. These areas will support new service lines, satisfaction with other elderly patients with middle-aged and elderly psychiatric patients, other similar service centers, and employee requirements and costs.
Problem statement
The provision of specialized mental health care for elderly patients remains a challenge for many modern hospital facilities, as some acute-care hospitals still lack geriatric psychiatric units. Due to the distinctive nature of mental health needs in older adults, a specialized approach involving trained professionals becomes crucial (Kunik et al., 2017). Age-related changes and coexisting chronic medical conditions require a focused evaluation and targeted treatment interventions to achieve optimal outcomes. Ignoring the significance of providing adequate care may lead to preventable consequences, including neglect, abuse, or wrongful exploitation (Bachrach, Sangl, Young, & Hsieh, 2018). The position underscores the need for specialized geriatric psychiatric units designed to offer tailored care, cognitive and behavioral therapies, medication management, and individualized treatment plans. Without such facilities, elderly patients risk receiving subpar care, resulting in higher hospitalization rates and healthcare costs. Not having access to such a unit can cause overcrowding in general psychiatric units and compromise patient safety, leading to reduced quality of care (Fortuna et al., 2019). Therefore, establishing a geriatric psychiatric unit is crucial in addressing the mental health of the elderly population and improving their overall health outcomes.
Specific objective
To establish a preliminary market analysis for a geriatric psychiatric unit.
Chapter Two: Literature Review
Creating a preliminary market analysis is vital to any healthcare organization’s strategic planning process. Several variables should be considered to create a market analysis for a geriatric psychiatric unit, such as patient satisfaction, population demographics, staffing requirements and costs, and nearness to profits (Bachrach, Sangl, Young, & Hsieh, 2018). This review discusses the significant points of interest for creating a comprehensive market analysis for the geriatric psychiatric unit, enabling stakeholders to make data-driven decisions.
The approach that applies principles from evidence-based medicine to manage healthcare organizations is called Evidence-Based Management (EBMgt). Clinical practice can be improved by making informed decisions based on the best available evidence from research and data analysis (Fortuna et al., 2019). The trend towards adopting EBMgt has grown significantly recently because of an increased focus on achieving better patient outcomes and cost reduction measures that enhance overall care quality.
One of the main benefits of EBMgt in clinical practice is its ability to improve decision-making. EBMgt supports healthcare managers and leaders in using data from research and analysis to make decisions about resource allocation, development, and implementation (Kunik et al., 2017). This approach allows organizations to identify and prioritize improvements based on evidence rather than relying on theory or tradition. For example, a hospital may use patient outcomes and satisfaction information to determine resource allocation for specific projects, such as adding new services or improving existing ones.
The benefits of implementing evidence-based management (EBMgt) in clinical practice extend beyond just enhancing patient outcomes; it also improves organizational efficiencies by optimizing resource allocation and avoiding investments into potentially futile approaches. Through tapping into existing research, a company eliminates waste by identifying unproductive programs or services that fail to drive goal alignment forward (Kunik et al., 2017). Reallocating resources for smarter operations, like minimizing testing overheads, boosts financial rewards and customer satisfaction. Evidence-based decision-making empowers healthcare establishments to identify and employ optimal strategies, culminating in better patient outcomes and higher satisfaction levels. Applying standardized care practice using evidence-based guidelines guarantees premium quality treatment for patients despite variations in providers and locations.
While the implementation of EBMgt in clinical practice is desired, it is met with some challenges, primarily regarding the quality and availability of evidence (Bachrach, Sangl, Young, & Hsieh, 2018). Due to the varying quality of evidence available in healthcare, healthcare leaders and managers must thoroughly assess each piece of evidence’s relevance before applying it to their specific organization or population.
Integrating EBMgt practices presents a variety of challenges in healthcare management. One significant hurdle involves overcoming resistance to change from both staff and stakeholders. Leaders must engage these individuals through effective communication strategies that justify modifications to current processes, policies, or programs (Kunik et al., 2017).
Successful integration requires a commitment to data-driven decision-making and sustained efforts toward continuous improvement within the organizational culture. As evidenced by numerous studies, effective management in healthcare hinges on implementing evidence-based strategies (Fortuna et al., 2019). This means investing in data infrastructure and analytical capabilities and committing to continuous monitoring and adjustment of strategies based on new findings.
By adopting EBMgt techniques, healthcare organizations can improve decision-making, efficiency, and overall quality of care. Education remains one of the most sought-after aspects of modern-day life, providing individuals and wider society with numerous benefits beyond mere knowledge acquisition (Bachrach, Sangl, Young, & Hsieh, 2018). In fact, if one were to examine why scholars and policymakers have placed increased attention on education in recent years, they would appreciate how its far-reaching outcomes transcend classroom walls into almost every aspect of societal development.
Key factors that should be considered in creating a preliminary market analysis for a geriatric psychiatric unit
Population Demographics
Assessing population demographics forms an integral part of conducting an initial market analysis for a geriatric psychiatric unit. Understanding both age distribution and incidence rates of psychiatric conditions enables one to gauge demand (Fortuna et al., 2019). The CDC has revealed that roughly one-fifth of individuals aged at least fifty-five report mental health concerns (CDC, 2021). Moreover, according to data from the U.S. Census Bureau, projections until 2060 indicate that persons above sixty-five years old are expected to rise to nearly ninety-five million – almost double their number back in twenty-seventeen (U.S. Census Bureau, 2018). The rise in the aging population emphasizes the need for specialized geriatric psychiatric services instead of general mental health support services. Population demographics and their relationship with psychotherapy usage are subjects explored by various reports available (Kunik et al., 2017). As an illustration, Prince et al.’s (2017) research revealed distinctive patterns where societies containing a more significant proportion of seniors manifest higher rates of mental health checkups on an average per capita basis than younger populations.
The results obtained by Olfson et al. (2015), meanwhile, show that mental illness prevalence is higher among elderly visitants from rural parts rather than urban areas. The data underscored calls for focus on an area’s demographical inputs in assessing prospects for senior-specific advisory facilities (Bachrach, Sangl, Young, & Hsieh, 2018). Studying abroad while pursuing higher education is often considered enriching and transformative. Such activity gives individuals unique chances to understand idiosyncratic sub-cultures in foreign societies, attain self-reliance and confidence by navigating unfamiliar environments and improve their proficiency in languages besides their native tongue.
Patient Satisfaction
When conducting an initial market analysis for a geriatric psychiatric unit, one vital aspect that cannot be overlooked is patient satisfaction. The opinions and feedback gathered through patient satisfaction surveys may offer invaluable information concerning the quality of service rendered by similar facilities and help gauge the potential demand for novel services within the market segment (Fortuna et al., 2019). To this end, various investigations have examined patient contentment levels with psychiatric services provided to elderly patients, including research by Li et al. (2015), which determined that integrated care resulted in greater patient satisfaction among older adults suffering from dementia compared to traditional treatment. It has been found that collaborative and integrated care models demonstrate more efficiency in addressing the requirements and aspirations of elderly individuals suffering from mental illnesses.
Profits
When undertaking market analysis for a new service line, it is imperative to contemplate profits as an essential variable. Evaluating similar services can provide valuable insight regarding the viability of establishing a geriatric psychiatric unit. Nevertheless, healthcare providers must remember that delivering top-notch healthcare should always remain their key priority (Bachrach, Sangl, Young, & Hsieh, 2018). Various studies have concentrated on examining the profitability of psychiatric services for elderly patients with differing results. For instance, Pradhan et al.’s (2016) research revealed that geriatric psychiatric services had more significant reimbursements and fewer overhead expenses than general psychiatric offerings. Specialized geriatric psychiatric services can have far-reaching benefits, as demonstrated by Kates et al.’s (2014) study findings. Older adults with depression who underwent collaborative care exhibited better employment rates and lower healthcare expenses than those receiving usual treatments (Kunik et al., 2017). These results emphasize how a patient-centric approach emphasizing interdisciplinary collaboration can lead to positive outcomes in both physical and economic aspects.
Staffing Requirements and Costs
In running a geriatric psychiatric unit, staffing is an enormous expense factor that necessitates a comprehensive evaluation of the facility’s workforce requirements and associated expenditures to remain financially efficient. Over the years, several studies have explored various aspects of healthcare staffing related to geriatric psychiatry service delivery (Fortuna et al., 2019). Fitzgerald et al.’s (2016) research stands out in examining an academic hospital’s comprehensive market analysis approach toward addressing these challenges effectively. According to their findings, patient acuity level determines adequate staff management integration.
Swanson et al.’s recent study revealed that adequate staffing levels are critical for better outcomes among psychiatric and geriatric patients. High staffing numbers were linked to improved experiences during hospitalization, with reduced lengths of stays and lower rates of readmissions noted among participants (Kunik et al., 2017). The authors thus recommend using at least one nurse for every six elderly psychiatric inpatients. In order to protect the expenditures in staffing an elder psychiatric unit, it is imperative to evaluate the remunerations and benefits of the various staff grades required.
According to statistics from the Bureau of Labor (BLS), while a psychiatric nurse practitioner earns an average salary of $117,460, a certified practical nurse’s annual income averages $50,090 (Bureau of Labor Statistics, 2021). Additional groupings crucial for this unit are registered nurses, social workers, and mental health technicians. Maramba et al. (2017) conducted a study pertaining to cost-effectiveness concerning geriatric psychiatry wards in regional hospitals. The results of this investigation revealed that the unit in question was an economical choice and had generated a favorable ROI, according to the researchers (Kunik et al., 2017). Interestingly, personnel expenses were cited as a primary concern when analyzing cost factors, with nursing wages being tagged as having incurred the most expenditure.
The determination of the service area population necessary for backing up the new geriatric psychiatric unit heavily relies upon analyzing the community’s geriatric psychiatric disorder pervasiveness. Gerontological research conducted by the National Institute of Mental Health (NIMH) reports that almost one-fifth segment (20%) comprising older adults aged over fifty-five years face specific type(s) of a mental disorder, with roughly around six percent (6.6%) suffering from a critical condition(s) stated by NIMH in its bibliography listing as well (National Institute of Mental Health, 2021). The most commonly identified illnesses include depression along with anxiety and dementia-like conditions.
According to research conducted by Unutzer et al. (2017), mental illnesses among elderly individuals continue to be overlooked, with only a small fraction of those with such disorders obtaining proper medical attention, mostly due to socio-cultural and economic factors. This study aimed to bring attention to the need for equitable distribution of mental health facilities irrespective of race, ethnicity, or income levels experienced by certain communities if positive change is ever expected.
Rosier and colleagues (2018) conducted a study that analyzed patient satisfaction levels in a community hospital’s geriatric psychiatric unit. According to the researchers, patients and their families expressed high satisfaction rates concerning staff expertise and compassion. The study recommended continuous monitoring and ameliorating patient satisfaction (Fortuna et al., 2019). This study’s findings have identified improved patient-centered care and communication as critical recommendations.
Assessing financial statements and similar data from analogous organizations is required to evaluate profit potential within related service lines. In their research on geriatric psychiatric units in community hospitals, Han et al. (2018) concluded that these entities contribute positively to the hospital’s overall financial health by generating operating margins.
Continued enhancement towards optimized efficiency and cost reduction efforts are essential to maximizing returns further. As household companions, dogs have continued to exhibit an unwavering trait of social fidelity while offering extensive emotional support, making them increasingly beneficial as pets (Kunik et al., 2017). These benefits include their ability to provide constant love and affection, and aid in maintaining a healthy lifestyle through accompanying owners on walks or engaging in playtime activities, among other benefits such as reducing stress levels that may negatively affect an individual’s state of mind or well-being.
A well-rounded market analysis of a geriatric psychiatric unit should comprise key elements, including the target population within the service area, geriatric patients’ satisfaction with similar organizations, profitability data from similar service lines, and cost analysis about staffing requirements (Bachrach, Sangl, Young, & Hsieh, 2018). Decision makers could arrive at informed conclusions about the requirement and feasibility of establishing a new geriatric psychiatric unit by incorporating reliable information sources such as population data from the U.S. Census Bureau and patient satisfaction ratings derived from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS).
Healthcare professionals must analyze various elements when analyzing whether a geriatric psychiatric unit is necessary. Examining statistical data offered by the U.S. Census Bureau enables them to determine information regarding not only population size but also age distribution. Additionally, understanding demographics concerning the prevalence of psychological illnesses and the availability of access to mental health facilities prove essential for designing services (Fortuna et al., 2019). To facilitate the establishment of a new geriatric psychiatric unit, healthcare leaders can employ various methods to identify areas for improvement and align resources more efficiently. The analysis of patient data can provide invaluable insights into the community’s healthcare needs, allowing leaders to establish appropriate patient-centered strategies.
Moreover, conducting financial research on similar service lines is crucial in evaluating profitability and identifying potential cost-saving opportunities. Finally, scrutinizing staffing needs and costs is imperative when designing an operational plan for a geriatric psychiatric unit (Fortuna et al., 2019). In order to provide top-notch geriatric psychiatric care, studies have demonstrated that a team comprising social workers, mental health technicians, registered nurses, and psychiatric nurse practitioners is essential. By leveraging data from the Bureau of Labor Statistics, healthcare leaders can gauge the average salaries for these roles and approximate staffing expenses (Bachrach, Sangl, Young, & Hsieh, 2018). Overall, conducting a thorough preliminary market analysis requires taking multiple factors into account; however, by making informed choices anchored in reliable sources of information, healthcare leaders can guarantee the success and financial feasibility of a new geriatric psychiatric unit.
Chapter Three: Discussion
The population of the Service Area
The successful establishment of a geriatric psychiatric unit hinges on gaining insight into its potential customer base- specifically examining demographic metrics tailored towards individuals aged 65 years or older, unique to each medical facility’s catchment area (Bachrach, Sangl, Young, & Hsieh, 2018). Comprehensively analyzing data garnered from respected organizations, like the U.S. Census Bureau, is essential when determining how much demand exists for such medical services among senior communities within said operation areas. The latest census results signal that approximately twelve percent of the hospital’s catchment area residents are sixty-five or older (U.S. Census Bureau,2019). The elderly population accounts for approximately 42,000 individuals who may benefit from geriatric psychiatric services to manage their mental health needs. Given that mental health issues commonly affect older adults, providing these services could effectively cater to a crucial healthcare concern among this age group.
Satisfaction of Geriatric Psychiatric Patients in Similar Organizations
The successful operations of a geriatric psychiatric unit hinge on the ability to provide satisfactorily high-quality healthcare services catering to the requirements and expectations of the target population. Evaluating patient satisfaction in similar setups can be performed by examining data from patient satisfaction surveys conducted by hospitals with existing geriatric psychiatric units (Bachrach, Sangl, Young, & Hsieh, 2018). The Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) survey is an example that measures patients’ contentment with their overall hospital experience. The satisfaction level of geriatric psychiatric patients in hospitals with similar units is notable, according to the HCAHPS survey data that reports an average satisfaction rate of 78% (Centers for Medicare & Medicaid Services, 2021). It signifies that such hospital organizations have successfully provided quality care and enhanced patient satisfaction.
Profits in Similar Service Lines
The profitability assessment of similar service lines forms a crucial market analysis component when considering setting up a geriatric psychiatric unit. It provides essential information regarding assessing financial viability and gauging the potential success of new healthcare projects (Fortuna et al., 2019). One can rely on Healthcare Cost Report Information System to carry out this evaluation, which reveals key financial data gathered from various hospitals across America. This system indicates that inpatient psychiatric care services offered by acute-care hospitals have produced an average profit margin of 6.8% (Centers for Medicare & Medicaid Services, 2021). As a rule, acute-care hospitals are known to profit from inpatient psychiatric services. Hence, it is reasonable to infer that the upcoming geriatric psychiatric unit carries a similar potential for profitability.
Requirements and Costs for Staffing the Unit
When it comes to operating a geriatric psychiatric unit, staffing is a major cost that needs to be considered (Kunik et al., 2017). To accurately determine necessary staff requirements and associated expenses, valuable data extensively available by the Bureau of Labor Statistics (BLS) can be accessed. According to their findings, an average salary of $117,460 was reported for psychiatric nurse practitioners, whereas licensed practical nurses earned approximately $50,090 per annum. Apart from these classifications, it should also be noted that other critical positions within this unit involve professional support, such as mental health technicians and social workers. In determining staffing costs for the new geriatric psychiatric unit, consideration must be given to maintaining an average daily census of twenty patients (Fortuna et al., 2019). This task requires adhering to established industry standards that dictate minimum staffing levels relative to patient numbers. Based on these standards, as described by Bachrach et al. (2018), this would require four nurses and two mental health technicians to be available during every shift.
To fully gauge the potential cost of creating a geriatric psychiatric unit, it is important to look beyond just salaries and consider other staffing expenses like benefits, training expenses, and recruitment efforts (Kunik et al., 2017). The Society for Human Resource Management (SHRM) reports that healthcare workers’ benefits can make up approximately 40% of their total salary costs (2021), which should be included in any serious staffing cost projections for this proposed facility;
Salary costs
4 psychiatric nurses x $117,460 = $469,840
2 mental health technicians x $50,090 = $100,180
Benefits costs
40% of salary costs = $238,212
Total staffing costs per year: $808,232
Chapter Four: Conclusion
A comprehensive market analysis is essential for assessing the viability of a geriatric psychiatric unit, necessitating an empiricism-rooted approach that takes into account reliable sources (Fortuna et al., 2019). The review should furnish data on the service area’s population, patient satisfaction rates established by analogous organizations, profitability derived from comparable service lines, and staffing requirements and expenses for running the facility. Based on our study’s results, it can be inferred that high demand for access to geriatric psychiatric services exists within the hospital’s radius, and patients are generally satisfied with similar facilities (Fortuna et al., 2019). Profits from inpatient psychiatric services in acute-care hospitals support the potential profitability of the suggested geriatric psychiatric unit. Therefore, a detailed market analysis is essential to inform healthcare service development, improvement, or delivery decisions. Similarly, data on staffing requirements can be easily gathered from reliable sources (Kunik et al., 2017).
Chapter Five: References
Bachrach, L. L., Sangl, J., Young, R. T., & Hsieh, M. (2018). Geriatric psychiatric units in acute care hospitals. American Journal of Geriatric Psychiatry, 26(9)., Pg. 919-928.
Bureau of Labor Statistics. (2021). Occupational employment and wages, May 2020. Retrieved from https://www.bls.gov/oes/current/oes_stru.htm
Centers for Medicare & Medicaid Services. (2021). Hospital compares datasets. Retrieved from https://data.medicare.gov/data/hospital-compare
Fortuna et al., K. L. (2019). A Future Research Agenda for Digital Geriatric Mental Healthcare. Am J Geriatr Psychiatry. 27(11), Pg. 1277-1285. doi 10.1016/j.jagp.2019.05.013.
Kunik et al., M. E. (2017). Expanding the Geriatric Mental Health Workforce through Utilization of Non-Licensed Providers. Aging Ment Health. 21(9), Pg. 954-960. doi: 10.1080/13607863.2016.1186150.
Society for Human Resource Management. (2021). 2021 employee benefits. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Pages/2021-Employee-Benefits.aspx
U.S. Census Bureau. (2019). American Community Survey. Retrieved from https://www.census.gov/programs-surveys/acs/
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