HCA 430 Special Populations Wk4-D1

 1. Economic Dynamics of Health Care Delivery Models 

 
After reading Chapter 7 and the required resources for this week, consider the following scenario:
HIV Help-Inc., a non-profit organization focusing on the prevention  of HIV/AIDS just received a $10 million grant to fund several projects.   The organization is currently located in an older building that needs  extensive repairs. The organization is using outdated office equipment  In addition, one additional staff member is needed in order to keep up  with incoming phone calls and requests for presentations and community  outreach activities. A portion of the grant – $2 million – is allotted  for business improvements which can address one of these three areas:  repairs to building, outdated office equipment, and more staff. The  remaining $8 million is to be used to further enhance the continuum of  care level to provide access to preventive health services.

Section A: Create a cost benefit analysis for an  update that will improve the business: structural, office equipment, or  staff. You can be creative in determining what the business needs.  The  cost will use the full amount of funds allotted to this improvement ($2  Million), so you can only improve one of these three needs
Note: Your work must include Steps 1-4, as outlined in section 7.2 of your course text.  
 

Section B: Create a cost effective analysis to  determine how to best spend the $8 million portion of the grant funding  on education and other preventive services. 
The organization currently serves the community and  clientele with community education classes at schools and community  centers, as well as the distribution of condoms and educational  materials. They wish to expand their current services to reach the  neighboring community (4,000 residents), add social media advertising  and messaging to reach the younger population, distribute educational  material and condoms to homeless shelters in the area, and add HIV  testing to at-risk individuals. Select two of the potential services and  determine how the money can be best spent to have the greatest outcome  for the HIV+ population in the community.
Note: Your work must address the costs as well as the anticipated benefits, as outlined in section 7.2 of your course text
 

Section C: Based on the  CDC website (Links to an external site.)Links to an external site., analyze how cultural norms impact the risk of getting HIV.  Explain one method or action on how to address this challenge.
Your initial contribution should be 250 to 300 words in length. Use  proper APA formatting for in-text citations and references as outlined  in the Ashford Writing Center

 
Discussion 1 asks you to understand the differences  between Cost Benefit Analysis (CBA) and Cost Effective Analysis (CEA).   The CBA is pretty straight-forward: it’s an exhaustive list of pros  (benefits) and cons (costs) when making a decision. Every possible  outcome is listed.  This is a tool often used by managers to determine  whether or not a decision is good for their bottom line.  It looks like  this:
   Potential Decision Outcome         
List of costs following this plan of action:
Update office equipment (as an example; you may choose any one of the items from the list)

List of strengths and weaknesses of following this plan of action:
 
1. New computers $

1. How will this strengthen the efficient operation of the business?
How might this detract from the efficient operation of the business?
 
2. New office furniture $

2.
 
3. New patient room furniture $

3.
 
Indirect costs: list and possible cost(s)

4.
 
Discussion of potential benefits to the program.
 
Comparison of costs and benefits.
Total costs (- $)
Total benefits (+ $)
Outcome (which of the two is greater, the costs or benefits?)
 
Decision: Pursue this plan of action, or drop this plan of action
Cost Effective Analysis is a bit different in that this analysis  looks at two or more processes and determines which one offers the  greatest benefit for the financial cost.  For example, let’s look at two  different drugs to treat cancer and one of those drugs costs more  money.  The outcome for drug A, the less expensive drug, has a lower  rate of cure than drug B, which is the more expensive drug.  The studies  for Drug A show 55% of the recipients progress to a remission state.   The studies for Drug B show 90% of the recipients progress to a  remission state.  This then means that, while Drug B has a higher cost  at the onset, this one is seen as having a lower overall cost because  there are more people who reach remission and thus do not need long term  treatment, do not typically face major periods or lifetime disability,  and have a higher quality of life.  Essentially, value is given to both  the monetary and the non-monetary outcomes, and the value is to a group  of people or society as a whole; there is little or no direct benefit to  the organization.
Another example of this is when buying furniture.  It’s important to  identify how the furniture piece will be used.  If you are buying a  chair that is meant for relatively constant use, you need a chair that  is well built and sturdy.  When you get to the furniture store, you see a  chair that looks good and the price is very affordable; let’s say this  chair costs $200.  You also see chairs that are more expensive that you  like; these cost $700.  Once you carefully investigate the first chair,  you find that it is not as well constructed as the more expensive  chairs.  You could buy the less expensive chair now, but you will have  to replace it in two to three years.  If you continue to buy the same  quality chair that needs to be replaced every two to three years, you  will spend $1000 over a 10 to 15 year period.   If you spend more money  now on the better-quality chair, it will last 25 or more years.   Ultimately, spending more money up front on the chair means you will  save money in the long run.
Here is a link to a great website (Links to an external site.)Links to an external site.  that has further explanations and examples.  There are tabs across the  top that offer different tools. Below the START button are the  explanations of the two different types of analyses.
Now that you have an understanding of the two different types of Cost  Analyses, you will apply this to the first discussion.  This discussion  focuses on an HIV/AIDS program serving a community.  The program has  received grant funds that are divided between internal program  improvements and program services offered to the clientele.  You know  that each person can reduce their risk of sexually transmitted diseases  through behavior changes and education.  Obviously, it is best to  prevent disease, but there is also a need to provide treatment for those  who have contracted HIV/AIDS.