Economic Dynamics Of Health Care Delivery Models

Economic Dynamics of Health Care Delivery Models

Your Name

Institution

Economic Dynamics of Health Care Delivery Models

Section A

We are provided with 2 million dollars for business improvement. This fund will be used in upgrading office equipment. Cost-benefit analysis cost of direct and indirect expenses, then the expenses are compared with the benefit. Moreover, if the project is justified, the decision of starting a project is finalized CITATION DPe06 \l 1033 (D Pearce, 2006).

Step 1 Assign a monetary value to both direct and indirect costs.

Direct Cost

Sr.No

Equipment

Unit cost

Number of Units

Total cost

1

functional desk

500

240

$120,000.00

2

Chairs

100

720

$72,000.00

3

Cabinets

200

480

$96,000.00

4

Shelves

375

480

$180,000.00

5

Table for conference room

1200

3

$3,600.00

6

Projector

1000

3

$3,000.00

7

cubicles

700

180

$126,000.00

8

Computers

1000

240

$240,000.00

9

Printer

800

60

$48,000.00

10

Scanner

250

240

$60,000.00

11

Fax machine

750

24

$18,000.00

12

Phones

100

220

$22,000.00

13

Whiteboard

100

18

$1,800.00

14

Security system

6400

1

$6,400.00

15

Internet connectivity

8100

1

$8,100.00

16

Paper shredder

375

40

$15,000.00

17

Copier

1400

12

$16,800.00

18

Lights

20

500

$10,000.00

19

Central air conditioning

60000

1

$60,000.00

20

Refrigerator

970

6

$5,820.00

21

Microwave

480

4

$1,920.00

22

Lab

200000

2

$400,000.00

23

Van

60000

4

$240,000.00

24

Miscellaneous

$245,560.00

total

$2,000,000.00

Indirect cost

Indirect cost includes delivery of these products and some additional cost that may arise which are not catered in the above table. These expenses will be covered in miscellaneous.

Expected Benefit

Making improvement in office equipment will be very beneficial to the organization. Some of the benefits are written below:

Expansion and outreach

Increase efficiency

Saving time

Cost effective in the long run

One-stop solution for HIV patients

Cost and Benefit Comparison

Total direct indirect cost

= 2,000,000 $

Anticipated benefit in 6 years

= 3,750,000 $

Profit

= 1,750,000 $

Make a Decision

Upgrading office equipment provides a positive rate of return in the long run. According to the financial and economic analysis of this up gradation project, the payback period of this investment will be 5.7 years.

Section B

We are provided with 8 million $ for preventive services. The program will facilitate 4000 residents. The fund will be spending us the period of 2 detail of which is given below:

Sr. No.

Programs details

Cost

1

Seminars

$1,370,000.00

2

Workshops

$97,000.00

3

Sex education campaigns

$250,000.00

4

broachers

$500,000.00

5

therapy

$678,000.00

6

purchasing condoms

$400,000.00

7

media marketing

$2,300,000.00

8

Mobile labs

$1,000,000.00

9

pother prevention kits

$575,000.00

10

Pay expert speakers

$100,000.00

11

Miscellaneous

$730,000.00

Total

$8,000,000.00

By initiating this project, the outreach of the organization will increase.

Section C (HIV Testing)

Sooner a patient realized that he has HIV, sooner he will start his treatment. HIV testing services ensure that the diagnosis is right CITATION DRH95 \l 1033 (DR Holtgrave, 1995). The HIV testing is effective in identifying the victim which may have HIV and may not know about it. HIV identification can limit the disease from further escalating in society. Moreover, timely treatment can also control the spread of disease and its effects on the patients.

References

BIBLIOGRAPHY D Pearce, G. A. (2006). Cost-benefit analysis and the environment: recent developments.

DR Holtgrave, N. Q. (1995). An overview of the effectiveness and efficiency of HIV prevention programs. Public Health.