Economic Dynamics of Health Care Delivery Models

Economic Dynamics of Health Care Delivery Models

fter 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 The organization is using outdated office equipment In addition, one additional staff member is needed in order to keep up with incoming phone calls and requests for presentations and community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– $2 million – is allotted for business improvements which can address one of these three areas: repairs to building, outdated office equipment, and more staff.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 needsNote: 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.), 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

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1) See Week 4 D1 I have already completed it, but did not include the direct cost

2) See below response from a fellow classmate, can you please edit my response to include those direct costs?

Example Classmate Response

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.

Cost analysis is used to determine how monetary is distributed equally to each department. A cost benefits analysis (CBA) assigns monetary value, or dollar total, to both direct and indirect cost, then compares the costs and benefits of a project to determine the likelihood of the project producing a positive outcome and a good return on the financial investments of the project( Burkholder, D.M. & Nash, N. B., 2014).

Step 1: Determine how much financials needs to be distributed between direct and indirect cost.

Step 2: Determine how the program would benefit the community, patients and staff.

Step 3: Compare the cost between direct, indirect and benefits.

Step 4: Finalize the decision.

I chose to repair the structural repairs to the building, so it can be benefit the staff, patients and the residents in the community. In order to provide top quality of care the facility must be in top condition.

Direct Cost: Structural Repair

Roof Replacement: $400,000

Electrical Rewiring $65,000

Cabinet Installation $20,000

Plumbing Repairs $300,000

Flooring $175,000

Painting $10,000

HVAC $375,000

Internet Installation $13,000

Phone line Repairs $18,500

Total $1,376,500

Indirect Cost:

Labor Distribution: $311,750

Employee Compensation: $311,750

Total: 2,000,0000

Section B

I will utilize majority of the money on education. Education is a more productive way to educate everyone concerning stopping the spread of HIV/AIDS. The money would allow for programs to be implemented, where people are able to attend to learn about the importance of being safe. The education would allow for presentations which would allow for brochures, condoms and ect. to be issued to individuals. HIV/AIDS, is contracted in multiply ways and most people only think that is contracted Sexually. Therefore, the education portion would allow for individuals to understand the concept of how HIV/AIDs is transmitted. The remaining of the finances would be utilized to provide protection to homeless shelters and the community. The facility would have an opportunity to receive condoms to protect themselves and others.

Section C

Cultural norms impact the risk of an individual HIV/AIDS. For instance, an individual that receives circumcision whether young or older, females and males may be prone to contracting HIV/AIDs. Most cultures believe in circumcising females and males due to their culture belief. The practice within a culture can cause for transmission of HIV because of blood transmission. The cultural norm is the belief and practice of what a person believes, which could cause for a person to become a carrier while destroying their life as well as others.

Resources: Burkholder, D. M., & Nash, N. B. (2013). Special populations in health care. Retrieved from https://content.ashford.edu

https://www.cdc.gov/hiv/basic/prevention.html (Links to an external site.)

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