Such awareness assists in identifying performance inefficiencies and predicting financial exposure, which is imperative in transforming to value-based payment models in exchange for fee-for-service. With the help of identifying that some regions of service delivery have been either under- or over-performing, the organization can eliminate risks by implementing the measures of corrections or increased cost management prior to a significant financial hit being incurred.

In the case of Corazon y Alma, a flexible budget is required to finance the new service line as it can better allow the changes in patient visits, OB procedures, and inpatient admissions. Given that maternal health services may change with the seasons, demographic changes, and Medicaid-enrolling persons, a flexible budget will enable the finance department to adjust to the volume fluctuations and prevent unanticipated changes in costs or revenues.

Revenue Variance: This entails an assessment of the discrepancies between the estimated revenue and the actual revenue (Homauni et al., 2023). Corazon y Alma ought to keep track of Medicaid, emergency Medicaid, and managed care contract collections for obstetrics. The level of no-show rates and the low rate of prenatal visits may lead to poor performance.

Cost Variance: This provides an evaluation of the variation between the actual and the expected costs. At Corazon y Alma, adverse cost variances would mainly be caused by such factors as higher C-section rates, ineffective uses of resources, overtime salaries in OB nursing units, and more. These will be some of the significant factors to be identified and controlled in ensuring financial sustainability.

Bundled Payments: At a time of high utilization of obstetric services and costs, it is possible to promote efficiency through bundling payments of episodic care, just like prenatal to postpartum care. Health affairs give a realistic way of moving away from volume to buying with bundled payments and controlling costs that could be varied by service parts.

Partial Capitation: This is where they provide fixed amounts paid on a per-member-per-month basis in the setting of a subset of services (Simmons et al., 2024). In the case of Corazon y Alma, a transition to partial prenatal and postpartum capitation can stabilize revenues but encourage the development of preventive outreach and, even as it removes the option of fee-for-service with complex inpatient care provision, should maintain a variety of different payment arrangements.

Considering the elevated level of Medicaid dependency and the increasing rate of C-sections, the implementation of bundled payments will ensure financial predictability and the preservation of the quality of care. This model is viable in the sense that the organization has an outpatient facility and a population that the organization can target. In the long run, Corazon y Alma can be slowly developed into shared savings or capitation payment systems as people acquire the capacity to operate and enhance health outcomes.