Discussion: Is It Worth It?

Healthcare managers need to have tools to create a financial analysis to justify programs, create new programs, and apply programs to patient services. You will review a case study for Shasta Outpatient Clinics and create a cost-effectiveness analysis (CEA). The Shasta Clinic leadership is trying to determine whether a staffing enhancement of a physician extender is needed in all three of their clinics or in only one or two of them. By applying the concepts of CEA, you will make a recommendation regarding the staffing change.

To Prepare:

• Review Chapter 9 of the Penner (2017) textbook, especially the section on CEAs
• Review Case Study 5, Shasta Family Practice in Pink and Song (2018). This case focuses on the use of physician extenders in three outpatient clinical settings.
• Select one of the three Shasta Outpatient Clinics to focus on for this Discussion. You must perform a cost-effectiveness analysis (CEA) to determine which type of extender, if any, would be appropriate for each practice. You will determine the financial impact and any qualitative improvements to patient care.
• Reflect on the results of your CEA for the physician extenders examined.
• Consider the financial impact of these extenders for the practice and reflect on qualitative improvements you might recommend to improve patient care.

BY DAY 4

Post a comprehensive response to the following:

• Provide a brief description of the Shasta Outpatient Clinic you selected.
• Briefly describe the results of your CEA for a physician extender.
• Highlight the primary and secondary patient benefits for the outpatient clinic site you selected based on the results of your CEA for a physician extender.
• Briefly explain the direct and indirect costs associated with the project or program. Are there costs that cannot be quantified? Are there any benefits that cannot be quantified? If so, describe what these costs are and explain why they cannot be quantified.
• As a decision-maker, how would you use the results of your CEA for this project? Be specific and provide at least two examples.

Assignment: Choosing an Alternative: Which Option Is Most Cost-Effective?

Using the case study for Shasta Outpatient Clinics, you will create a cost-benefit analysis (CBA). The Shasta Clinic leadership is trying to determine whether a staffing enhancement of a physician extender is needed in all three of their clinics or in only one or two of them. By applying the concepts of CBA, you will make a recommendation and present it in a business plan that identifies your recommendation for the physician extender. You will assess fixed costs (FC), variable costs (VC), and total costs (TC). The Assignment will give you experience creating a business case that you can use as a healthcare manager to state your case with sound financial principles.

The Assignment: (1-page Business Plan and Excel Sheet)

To complete this Assignment, you will:

• Complete a cost-benefit analysis (CBA) using the Shasta Family Practice case study.
• Prepare a 1-page Business Plan that you will submit to the Shasta Vice President Dr. Rudy Mason that synthesizes your CBA results.

Please be aware that you will submit two files for this Assignment.

Part I. The CBA (1-page Excel spreadsheet)

• Download the Shasta Family Practice spreadsheet (in the Learning Resources)
• Using the data provided in the Shasta Family Practice case study, insert the fixed and variable costs associated with each physician extender alternative into the spreadsheet. The data will be entered into the cells shaded green. Do not enter data in the cells shaded in pink.
• The spreadsheet will automatically calculate annual costs. Once you have your cost results, you will be able to propose the physician extender plan that will provide the most cost benefit for the three outpatient clinics.
• Save your results in the Excel spreadsheet for submission.

Part II. Business Plan (2 pages)

In order to communicate your results, you will prepare a professional business plan for delivery to Dr. Rudy Mason, Vice President of the Shasta Family Practice. You will prepare a Business Plan that addresses the following:

• Explain the concept of using a physician extender and the two types of extenders.
• Provide a brief description of the services of each clinic.
• Identify the purpose and assumptions associated with a cost-benefit analysis (CBA)
• Share why a CBA was appropriate for determining the physician extender alternative.
• Identify the FC, VC, and TC for an Outpatient Surgery Center.
• Identify the FC, VC, and TC for an Internal Medicine Center.
• Identify the FC, VC, and TC for an Eldercare Clinic.
• Explain which physician extender alternative provides the most cost-benefit given the CBA results for each clinic.
• Explain and support your recommendations for assessing the clinical and financial outcomes.
• Make sure to follow APA guidelines for your business plan format and support your business plan with references