Effects of Medicare cutbacks for dme companies and patients Essay

Effects of Medicare cutbacks for dme companies and patients - Essay Example The new rates that have evolved from the bidding system are initially meant for ten metropolitan areas, but will soon be extended to other areas and possibly nationwide. Information of the cuts in the reimbursement indicate steep reimburse cuts for oxygen and oxygen equipment at 30% and sleep apnea products at 29%. This is likely to cause revenue return issues for companies like Apria Healthcare Group Inc and Lincare Holdings Inc, who market oxygen equipment and ResMed Inc marketing sleep apnea products. The average reimbursement cuts for DMEs is 26%, which has significant implications for the bottom line of companies dealing with DMEs (U.S. Medicare cuts oxygen, apnea pay rates). The relevance of the study of this issue lies in these implications for the DME markting organizations and the consequent fall-out on the many senior and disabled citizens dependent on Medicare for access to DME to assist them through their difficulties. Consequent to the provisions of Medicare Part B mandatory accreditation and competitive bidding have become a part of the supply procedures at the Centers of Medicare and Medicaid throughout the ten major metropolitan areas that have selected for implementattion of these new procedures with regard to DMEs. The category of products affected by the complicated adjudication protocols as necessitated by Medicare Part B include DMEs, prosthetics and orthotics, commencing from the beginning of 2007 (Johnson, 2007). From the companies marketing DMEs and the chain retail pharmacies involved in making available DMEs for purchase the stumbling blocks lie in the administrative burden involved in the bidding process and the crippling $65,000 bond to participitate in the bidding process. These two hindrances may well cause many of the retail pharmacies to opt out of serving patients in this segment of health care and for the DME marketing companies there is the definite possibility of reduced revenue generation,

How information Technology can be used to achieve sustainable Essay

How information Technology can be used to achieve sustainable competitive advantages - Essay Example In addition, the basic purpose of developing and implementing the modern and up-to-date information systems in the business and corporate structures is to enhance the overall corporate performance and enhanced management of the business data (Laudon & Laudon, 1999; Turban et al., 2005). Literature Review According to (Turban et al., 2005, p.18) â€Å"an information system is set of different aspects that work collectively in order to gather, operate, store, assess, and transmit information with the intention of performing a particular task.† Basically, the products and business processes to develop those products differ from organization to organization. Hence, a business organization can make use of information system for different purposes according to their needs and requirements. For instance, an organization can make use of an information system to deal with its human resource related processes or for dealing with accorunts and financial matters. In this scenario, as an o rganization is based on different aspects such as departments and employees in the same way an IS encompasses a variety of aspects like that inputs (whuch an information system receives in the forms of data and instructions from its users) and outputs (which are delivered by the information system in the forms of results, calculations and reports). Thus, it provides the desired outputs by carrying out certain operations on the inputs. Value Chain Model Operations: This process involves the activities that are involves in the transformation of inputs into final products. In this scenario, information systems can play a significant role. As the figure 1 demonstrates, this process can be supported through computer aided manufacturing. These systems can be used in design and development of the products (CiteHR, 2013; Schwanzer, 2007). In this scenario, information systems cannot only be used as a wonderful tool for automating desired business processes and activities but they can also b e used to support the business organizations in designing and putting into practice a number of value added-systems in the business organizations like that the majority of bussiness organizations combine and arrange their manufacturing cycle along with information systems so as to confirm that the outputs it generates comply with the organization’s requirements and needs as well as various quality management mechanisms. The research has shown that the implementation of information systems allows the business organizations to make their business operations simple and do not waste their precious time in performing unnecessary operations. Additionally, the majority of business organizations take benefit of information systems to incorporate control and measures to human resource related activities, in an attempt to make sure that only human resources having the proper privileges and authority can be allowed to perform particular tasks. Also, the use of information systems allows the business oraganizations to throw away chronic actions and improve correctness, supporting company’s employees to contemplate on more difficult processes. Furthermore, an organization can also use information syste