For this assignment, you will analyze an economic initiative that is relevant to your current or desired health care leadership position, using a cost-benefit analysis tool. Examples of potential topics are changing staffing ratios, acquiring new diagnostic capital equipment, adding a new clinical service line, examining the impact of a pricing modification on a payer contract, or expanding non-reimbursed care from four to five percent per annum. You will list associated costs, assign monetary and non-monetary benefits, and examine net present value (PV) and future value (FV) over a time horizon of five years. You will practice executive action by making a recommendation, and supporting it with rationale. The deliverable for this assignment is a completed cost-benefit analysis spreadsheet with line item costs, estimated monetary and non-monetary benefits, and a PV and FV over a five-year time horizon. In addition, you will include a short narrative executive summary with salient points for decision making and your final recommendation. Use the preformatted Cost-Benefit Analysis Spreadsheet, located in the Resources section.
Instructions
- Select a relevant health care initiative from the workplace for economic analysis.
- Complete the Cost-Benefit Analysis Spreadsheet, I have attached the spreadsheet to use.
- Analyze the net present value and future value (5-year time horizon) of the proposed initiative.
- Propose a recommendation to proceed with the initiative or not, based upon sound quantitative and qualitative data. Summarize, as well, salient external environmental considerations and organizational "fit."
Requirements
- Length of paper:5-8 double-spaced, typed pages. Your paper should be succinct yet substantive.
- APA formatting:Resources and citations are formatted according to current APA style and formatting