AMT 2 Task 3 solution 100% - 98688

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Service Line Development

Task 3

Western Governor’s University



Service Line Development


Healthcare has experienced a vast amount of change in recent years, with anticipation of constant evolution of the healthcare system.  In the past, hospitals were accustomed to fee for service payments in which each treatment ordered was paid separately.  This model potentially created a conflict of interest, enticing healthcare providers to order more visits, treatments, and procedures causing overutilization of costly resources (Aoughsten, Johnson, Kuruvilla, and Bionat, 2015).  The Affordable Care Act (ACA) was signed into law in 2010, with hopes to provide uninsured patients insurance coverage and also to reform healthcare systems.  Introducing the ACA into law has caused hospitals to completely reevaluate the way they think and operate.  Trinity Community Hospital must adapt to a climate of decreasing reimbursement and increasing competitiveness. 

Value-based payment is part of the ACA and has provided incentive to healthcare providers to improve the quality provided to patients.  If the hospital performs well in certain quality measures, they will be eligible for a base rate increase in payment.  Quality Initiatives have always been an integral part of Trinity Community Hospital, but now that the government is tying payment to performance, the hospital must have an even greater focus on quality of care.

Another payment strategy of ACA is the Readmission Reduction Program, designed to decrease costs and inefficiencies that involve hospital readmissions (Aoughsten et al., 2015).  Trinity Community Hospita