For this assignment, you will analyze an economic initiative that is relevant to your current or desired health care leadership position, using a

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

  1. Select a relevant health care initiative from the workplace for economic analysis.
  2. Complete the Cost-Benefit Analysis Spreadsheet, 
  3. Analyze the net present value and future value (5-year time horizon) of the proposed initiative.
  4. 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.”

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