Briefly explain the direct and indirect costs

/in /by

HEALTH CARE ECONOMICS & FINANCIAL MANAGEMENT .

250-300 words due thursday by 11:59pm use correct citations
A cost-benefit analysis (CBA) and cost-effective analysis (CEA) provide valuable information for individuals responsible for financial planning. These tools are also helpful in health care organizations. The principles of CBA and CEA can also be applied to your personal financial decisions.
To prepare for this Discussion, complete the readings in your Learning Resources. Think of a project or program (e.g. creating a new geriatric health center, purchasing a piece of expensive diagnostic equipment, or adding an employee benefit) in a health care setting. Identify all of the primary and secondary benefits of the program. Also identify the direct and indirect costs.
By Day 4
Post a comprehensive response to the following:
Provide a brief description of the project or program you selected.
Highlight the primary and secondary benefits of this project. Briefly explain the direct and indirect costs. Are there costs that cannot be quantified? Are there any benefits that cannot be quantified? Why?
As a decision maker, how would you use the CBA and CEA for this project?
Be sure to support your work with specific citations from this week’s Learning Resources and/or additional scholarly sources as appropriate. Your citations must be in APA format. Refer to the Essential Guide to APA Style for Walden Students to ensure your in-text citations and reference list are correct.
______________________________________
resources
Introduction to Health Care Economics & Financial Management
Chapter 7, “Cost Allocation and Cost-Finding”In their operating expense budgets, many health care settings budget and report indirect costs generated by departments that provide direct services. This chapter presents an overview of the allocation of indirect costs. The concepts of cost allocation and cost-finding are explained with examples from health care settings.
Chapter 8, “Break-Even Analysis”The break-even analysis calculates how much one should charge or how many patients must be seen to cover the cost of doing business in health care. This chapter addresses these factors and includes the calculation and application of the contribution margin as well as the importance of indirect and overhead costs.
Chapter 9, “Cost-Benefit Analysis and Cost-Effectiveness Analysis”Cost-benefit and cost-effectiveness analyses are the focus of this chapter. This chapter will explain how you evaluate the benefits and resources used between two or more alternative interventions.
Optional Resources
Kee, J. E. (1999). At what price? Benefit-cost analysis and cost-effectiveness analysis in program evaluation. The Evaluation Exchange, 5(2 & 3), 4–5. Retrieved from http://www.hfrp.org/evaluation/the-evaluation-exchange/issue-archive/methodology-15/at-what-price-benefit-cost-analysis-and-cost-effectiveness-analysis-in-program-evaluation
Hutton, G. & Reyfuess, E. (2006). Guidelines for conducting a cost-benefit analysis of household energy and health interventions. World Health Organization. Retrieved from https://extranet.who.int/iris/restricted/bitstream/10665/43570/1/9789241594813_eng.pdf
Centers for Disease Control and Prevention. (n.d.). Cost benefit analysis. Retrieved from http://www.cdc.gov/owcd/eet/cba/PrintAll.html
You might also like
Compare and Contrast Theories of Counseling
Nursing homework help Report Issue Discussion: Comparing Frameworks for Analyzing Organizations Avedis Donabedian’s work generated a pivotal means of assessing organizational performance relative to structure, process, and outcomes. However, it is clearly not sufficient to view health care quality merely in terms of outcomes—the structures and processes that facilitate these outcomes are equally as important. In this Discussion, you consider multiple frameworks that can be used to analyze an organization. As you proceed, consider how these frameworks allow you to examine the interplay of interdependent and related parts and processes that comprise the systems within an organization, as well as the arrangements or structures that connect these parts. To prepare: Investigate and reflect on the systems and structures of an organization with which you are familiar. Consider the following: What is the reporting structure? Who holds formal and informal authority? How many layers of management are there between the frontline and the highest office-holders of the organization? How are interdisciplinary teams organized? How is communication facilitated? How well integrated is decision making among clinical personnel and administrative professionals? How are particular service lines organized? Which departments, groups, and/or individuals within the organization are responsible for monitoring matters related to performance, such as quality and finances? Select two of the following frameworks: Learning organizations, presented in the Elkin, Haina, and Cone article Complex adaptive systems (CAS), presented in the Nesse, Kutcher, Wood, and Rummans article Clinical microsystems, presented in the Sabino, Friel, Deitrick, and Sales-Lopez article Good to great, presented in the Geller article The 5 Ps, presented in the ASHP Foundation article Review the Learning Resources for each of the frameworks that you selected. Also conduct additional research to strengthen your understanding of how to use each framework to assess an organization. Compare the two frameworks. How could each framework be used to identify opportunities to improve performance? In particular, how would you use each of these frameworks to analyze the organization that you have selected? By Day 3 Post an analysis of the systems and structures of the organization you selected, sharing specific examples. Explain insights that you gained by comparing the two frameworks, and how each can be used to assess an organization, identify a need for improvement, and, ultimately, enhance the performance of an organization. Hickey, J. V., & Brosnan, C. A. (2017). Evaluation of health care quality in for DNPs (2nd ed.). New York, NY: Springer Publishing Company. Chapter 1, “Evaluation and DNPs: The Mandate for Evaluation” (pp. 3-36) Chapter 3, “Conceptual Models for Evaluation in Advanced Nursing Practice” (pp. 61-86) Chapter 6, “Evaluating Organizations and Systems” (pp. 127-142)Chapter 1 defines microsystem, mesosystem, and macrosystem and notes that evaluation can focus on one of these levels or all three. Chapter 5 examines the evaluation of organizations and systems. Sadeghi, S., Barzi, A., Mikhail, O., & Shabot, M. M. (2013). Integrating quality and strategy in health care organizations, Burlington, MA: Jones & Bartlett Publishers. Chapter 2, “Understanding the Healthcare Organization” (pp. 31–43)Although this chapter focuses on hospitals, the authors provide information about strategic planning and organizational structure that is applicable in many health care settings. The authors examine financial and quality issues as key aspects of performance measurement. Elkin, G., Zhang, H., & Cone, M. (2011). The acceptance of Senge’s learning organisation model among managers in China: An interview study. International Journal of Management, 28(4), 354–364. Retrieved from the Walden Library databases. This article outlines the five disciplines that Senge argued could be found in a learning organization. The authors also discuss the worldview that is inherent in business organizations in China and explain how this relates to Senge’s theory. Geller, E. S. (2006). From good to great in safety: What does it take to be world class? Professional Safety, 51(6), 35–40. Retrieved from the Walden Library databases. Geller reviews and applies Collin’s foundational Good to Great theory from its focus on financial success to safety. Nesse, R. E., Kutcher, G., Wood, D., & Rummans, T. (2010). Framing change for high-value healthcare systems. Journal for Healthcare Quality, 32(1), 23–28. Retrieved from the Walden Library databases. This article explores how to implement change in complex adaptive systems (CAS) such as health care. The authors purport that an understanding of the principles of change management in CAS is critical for success. Sabino, J. N., Friel, T., Deitrick, L. M., & Salas-Lopez, D. (2009). Striving for cultural competence in an HIV program: The transformative impact of a microsystem in a larger health network. Health & Social Work, 34(4), 309–313. Retrieved from the Walden Library databases. The authors discuss cultural competence as part of a patient-centered perspective on health care delivery. They examine an approach to creating innovation that originates at the unit (microsystem) level and can be diffused to the larger health care environment (macrosystem).
Explain the functions of the utilization management nurse, and compare and contrast the information from that organization
Finding “factors for” and “factors against” a position is a versatile tool for critical thinkers
How you apply the Asset Approach in your human service practice
Discuss the ethical issues created by the chosen topic as described in your case scenario
Explain ways of determining whether loved ones have a problem with drugs using the current DSM characteristics of substance use disorders
Numbers Can be Worth a Thousand Pictures: Individual Differences in Understanding Graphical and Numerical Representations of Health-Related Information