Description
Running head: COST-BENEFIT ANALYSIS
1
Cost-Benefit Analysis
Name
Capella University
Health Care Quality, Risk, and Regulatory Compliance
Assessment 3
Date
COST-BENEFIT ANALYSIS
2
Abstract
[The purpose of your abstract is to provide a brief yet thorough overview of your paper. The
APA publication manual suggests that your abstract should function much like your title page—
it should allow the person reading it too quickly determine what your paper is all about. Begin
your abstract on a new page and place your running head and the page number 2 in the top righthand corner. You should also center the word “Abstract” at the top of the page. Keep it short.
According to the APA style manual, an abstract should be between 150 to 250 words.]
COST-BENEFIT ANALYSIS
Focus of Stakeholders for a Cost-Benefit Analysis
[Specify the focus and stakeholders for a cost-benefit analysis]
3
COST-BENEFIT ANALYSIS
4
Value Proposition for Change Management
[Develop a value-based proposition for change management that incorporates quality and
risk-management concepts.]
Strategies to Influence and Impact the Changes for Quality Improvement
[Describe strategies to influence and impact the needed changes for quality
improvement.]
Cost-Benefit Analysis
[Conduct a cost-benefit analysis for a risk-management intervention. Use the Tool
provided, then discuss your findings here. Be sure to also upload the Excel Tool.]
Internal and External Benchmarks
[Identify relevant internal and external benchmarks, using a systems-based perspective.]
Conclusion
COST-BENEFIT ANALYSIS
5
References
Assessment 3- Cost- Best Analysis
Create a 5–6-page cost benefit analysis that supports a risk financing
recommendation for a selected organization.
Note: The assessments in this course build upon each other, so you are strongly
encouraged to complete them in a sequence.
In your current and future role as a health care leader, you can expect to conduct a
cost-benefit analysis (CBA) to determine whether the positive benefits of a
proposed recommendation outweigh the negative costs.
By successfully completing this assessment, you will demonstrate your proficiency
in the following course competencies and assessment criteria:
•
o
o
o
•
o
•
o
•
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Competency 1: Conduct an environmental assessment to identify quality- and riskmanagement priorities for a health care organization.
Specify the focus and stakeholders for a cost-benefit analysis.
Develop a value proposition for change management that incorporates quality- and
risk-management concepts.
Describe strategies to influence and impact the needed changes for quality
improvement.
Competency 2: Apply a risk-management model or framework to a specific riskmanagement priority.
Conduct a cost-benefit analysis for a risk-management intervention.
Competency 3: Analyze the process and outcomes of a care quality- or riskmanagement issue.
Identify relevant internal and external benchmarks, using a systems-based
perspective.
Competency 5: Communicate in a manner that is scholarly, professional, and
consistent with expectations for professionals in health care administration.
Use correct grammar, punctuation, and mechanics as expected of a graduate learner.
Context
In your current and future role as a health care leader, you can expect to conduct
a CBA. You may be asked to offer three alternatives and to make a
recommendation.
Plowman relates that “a cost benefit analysis is used to evaluate the total anticipated
cost of a project compared to the total expected benefits in order to determine
whether the proposed implementation is worthwhile for a company or project
team.” Plowman also identified the three parts of a CBA to be the following:
•
•
•
Identification of potential costs.
Recording of all anticipated benefits.
Examination of the differences to determine if positive benefits outweigh negative
costs.
A pre-formatted Excel spreadsheet that can be used as a template for CBAs is a good
tool to have in your personal toolbox. Inputting data is simply the first step. As you
fill out templates, always consider the numbers within the context of an
organizational mission, strategic direction, patient safety, risk-management issues,
regulatory requirements, patient and stakeholder satisfaction, and also the
dynamics within the health care industry.
Reference
Plowman, N. (2014). Writing a cost-benefit analysis. Retrieved from
http://www.brighthub.com/office/project-management/articles/58181.aspx
Questions to Consider
As you prepare to complete this assessment, you may want to think about other
related issues to deepen your understanding or broaden your viewpoint. You are
encouraged to consider the questions below and discuss them with a fellow
learner, a work associate, an interested friend, or a member of your professional
community. Note that these questions are for your own development and
exploration and do not need to be completed or submitted as a part of your
assessment.
•
•
•
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What steps do you need to take in order to align a CBA with an organization’s
mission and strategy?
If you were to offer three alternative recommendations after a CBA, what types of
elements would you consider to differentiate them from one another?
How would you substantiate a recommendation for reducing financial risks in a
health care setting when the quality of care is involved?
What are the three parts of a CBA?
Required Resources
The following resources are required to complete this assessment.
•
Cost-Benefit Analysis Template [XLSX].
Resources
Suggested Resources
•
The resources provided here are optional and support the assessment. They provide
helpful information about the topics. You may use other resources of your choice to
prepare for this assessment; however, you will need to ensure that they are
appropriate, credible, and valid. The MHA-FP5014 – Health Care Quality, Risk, and
Regulatory Compliance Library Guide can help direct your research. The
Supplemental Resources and Research Resources, both linked from the left
navigation menu in your courseroom, provide additional resources to help support
you.
Plowman, N. (2014). Writing a cost-benefit analysis. Retrieved from
https://www.brighthubpm.com/project-planning/58181-writing-a-cost-benefitanalysis/
This article discusses how to value risk reductions in the context of benefit-cost
analysis.
•
Robinson, L. A., & Hammitt, J. K. (2013). Skills of the trade: Valuing health risk
reductions in benefit-cost analysis. Journal of Benefit-Cost Analysis, 4(1), 107–130.
This article discusses a cost analysis approach in medical education.
•
Walsh, K., Levin, H., Jaye, P., & Gazzard, J. (2013). Cost analyses approaches in
medical education: There are no simple solutions. Medical Education, 47(10), 962–
968.
This article describes the cost-benefit methodology in terms of criminal justice
policy.
•
Manski, C. F. (2015). Narrow or broad cost–benefit analysis [PDF]? Criminology &
Public Policy, 14(4), 647–651.
Additional Resources for Further Exploration
You may use the following optional resources to further explore topics related to
competencies.
Risk-Management Textbooks
•
•
Kavaler, F., & Alexander, R. S. (2014). Risk management in health care institutions:
Limiting liability and enhancing care (3rd ed). Burlington, MA: Jones and
Bartlett. Available from the bookstore.
Youngberg, B. J. (2011). Principles of risk management and patient safety. Sudbury,
MA: Jones and Bartlett. Available from the bookstore.
Risk-Management Professional Organizations
•
•
The Risk Management Association. (n.d.). Retrieved
from https://www.rmahq.org/Default.aspx
American Hospital Association. (n.d.). American Society for Health Care Risk
Management. Retrieved from http://www.ashrm.org/
Assessment Instructions
Note: This assessment should be completed third.
Preparation
Scenario
Suppose an issue has emerged in your organization that presents significant
risks to the stakeholders involved. Your supervisor has asked you to conduct a
CBA, make a recommendation, and present it to the board of directors. You are
expected to consider the numbers within the context of the organizational
mission, strategic direction, patient safety, risk-management issues, regulatory
requirements, patient and stakeholder satisfaction, and the dynamics within the
health care industry.
Select a relevant issue within your workplace (or one from the Suggested
Resources) for which a CBA may be conducted. The CBA should include one of
the following course-related topics:
•
•
•
•
•
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Quality.
Patient safety.
Risk management.
Regulatory standards.
Compliance.
Patient and stakeholder satisfaction.
Instructions
Step One: Identify Costs
Apply the process from Writing a Cost-Benefit Analysis article (from the Required
Resources) to identify costs:
1. Make a list of all monetary costs that will be incurred upon implementation and
throughout the life of the project. These include start-up fees, licenses, production
materials, payroll expenses, user acceptance processes, training, and travel
expenses, among others.
2. Make a list of all non-monetary costs that are likely to be absorbed. These include
time, low production of other tasks, imperfect processes, potential risks, market
saturation or penetration uncertainties, and influences on one’s reputation.
3. Assign monetary values to the costs identified in steps one and two. To ensure
equality across time, monetary values are stated in present value terms. If realistic
cost values cannot be readily evaluated, consult with market trends and industry
surveys for comparable implementation costs in similar businesses.
4. Add all anticipated costs together to get a total costs value (Plowman, 2014).
Step Two: Identify Benefits
Continuing with the CBA, proceed with the identification and quantification of
benefits, per Writing a Cost-Benefit Analysis article.
1. Make a list of all monetary benefits that will be experienced upon implementation
and thereafter. These benefits include direct profits from products or services,
increased contributions from investors, decreased production costs due to
improved and standardized processes, and increased production capabilities,
among others.
2. Make a list of all non-monetary benefits that one is likely to experience. These
include decreased production times, increased reliability and durability, greater
customer base, greater market saturation, greater customer satisfaction, and
improved company or project reputation, among others.
3. Assign monetary values to the benefits identified in steps one and two. Be sure to
state these monetary values in present value terms as well.
4. Add all anticipated benefits together to get a total benefits value (Plowman, 2014).
Cost-Benefit Analysis
Enter the cost and benefit data you developed for the CBA in your preparation
steps into the Cost-Benefit Analysis Template, linked in the Required Resources.
Then, write an analysis in which you do the following:
•
Describe the organizational, program, or departmental issue for which you have
created the CBA.
•
•
•
•
•
Evaluate the cost versus benefit according to the general guidelines outlined by
Plowman’s 2014 article, which you read in the preparation for this assessment.
Make a recommendation as to whether the benefits are sufficient to outweigh the
costs of the proceeding.
Describe the systems-based context for your recommendations, integrating the CBA
within the organization as a whole.
Describe how the issue relates to the organization’s vision, mission, and strategic
direction.
Provide a rationale that explains how your recommendations are appropriate for
your organization’s capacity and strategy.
Your analysis should use proper APA style and formatting and include the
following sections. Each section, except the title page, should include the
appropriate section heading.
1. Title page: Use APA formatting and include the following:
o
Assessment number (Assessment 3).
o
Your name.
o
The date.
o
The course number (MHA-FP5014).
o
Your instructor’s name.
2. Abstract: Include a one-paragraph summary of analysis content. This is not an
introduction to the topic, but a summary of the entire analysis. Make sure to doublespace.
3. Issue description.
4. CBA evaluation.
5. CBA recommendations.
6. Context for recommendations.
7. Relationship to vision, mission, and strategy.
8. Rationale.
9. Conclusion.
10. References.
11. Appendix: Attach your completed Cost-Benefit Analysis Template.
Additional Requirements
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Written communication: Written communication should be free from errors that
detract from the overall message.
Length of paper: 5–6 typed, double-spaced pages.
Font and font size: Times New Roman, 12 point.
Appendix: Include your Cost-Benefit Analysis Template as an appendix to your
analysis.
Reference
Plowman, N. (2014). Writing a cost-benefit analysis. Retrieved from
http://www.brighthub.com/office/project-management/articles/58181.aspx
COST BENEFIT ANALYSIS TEMPLATE
Step 1: Enter cost amounts as future value (FV) expectations. The future value will be automatically converted to present value
Enter benefit amounts as FV expectations. The FV will automatically be converted to PV. Step 3: Subtract the total PV benefits
PV costs to get the net benefit.
Current Year
(CY)
Costs
CY +1
CY +2
CY +3
CY +4
Total Costs (Future Value)
Total Costs (Present Value)
blank row
Benefits
Total Benefits (Future Value)
Total Benefits (Present Value)
blank row
Present Value Discout Rate
PV Denominator
Net Benefit
End of worksheet
$
$
–
$
$
Current Year
(CY)
$
$
–
–
$
$
CY +1
$
$
–
–
$
$
CY +2
$
$
–
–
$
$
CY +3
$
$
–
–
CY +4
$
$
–
2%
1.00
1.02
1.04
1.06
1.08
atically converted to present value (PV). Step 2:
p 3: Subtract the total PV benefits from the total
Total Costs
CY +5
$
$
–
$
CY +5
$
$
–
–
Total Benefits
$
–
$
–
1.10
Running head: REGULATORY ENVIRONMENT
1
Regulatory Environment – Executive Summary
Hagar Duku Osei
Capella University
MHA-FP5014- Health Care Quality Risk Regulatory Compliance
Assessment 1
January, 2020
REGULATORY ENVIRONMENT
2
Proactive Assessment
Assessing an organization’s risks includes an objective assessment of a firm’s operations in order to
determine its potential liabilities and hazards (Heidelberger, n.d). Risk management and quality care are the
basics of healthcare that ensures organization’s sustainability and its financial permanency. With the estimation
of rapid growth in healthcare between 2020 and 2030, there is a greater chance of growth in risks to healthcare
industry (Collins, 2019). For this reason, it is imperative for Grace Healthcare Systems (GHS) to recognize and
identify possible issues that may be facing the company to comprise its operations and quality of care.
At GHS, an assessment analysis conducted indicated that, the company has the potential of common
risks that involves workplace violence, employee’s compensation injuries, technical failures, and financial risks.
Also, patients’ complaints, breaches of data, Health Insurance Portability and Accountability Act (HIPAA)
violations, and medical incidents are some risks faced by the facility (Colins, 2019). These risk management
issues can affect GHS in diverse facets. However, GHS finances and quality of care can be the areas that may
be affected most.
Managing these issues at GHS is vital to the company because, first of all, victims of work place
violence mostly results in posttraumatic stress disorder, anger, depression, frustration, sadness, and many
emotional disorders, which eventually affects the individuals work performances (Lanctot, Guay, 2014). In the
long run, productivity will be affected thus causing financial losses to the organization. Also, claims from
employee’s compensation has the potential of increasing the organization’s insurance premiums which will lead
to higher financial burdens. Moreover, breach in data poses risk to the organization’s finances as well its
reputation. According to a research conducted in 2013, healthcare industry suffered almost seven billion dollars
on breach of data in 2012 (Collins, 2014). Despite the higher financial impact on the organization, it may lead to
tarnishing its image, thus reducing public patronization and minimizing income, while questioning its quality
capabilities. For the organization to manage its risk issues it must be conformed and in compliance with the
regulatory requirements.
REGULATORY ENVIRONMENT
3
The increase use of mobile devices in the field of healthcare in recent days has raised more concerns
about communication and information storage. In 2013, HIPAA considered all traditional mobile ways of
communicating and storing information as unsecured anymore. For an example, using SMS or emails as a
means of communication and storage of data. Therefore, HIPAA requires all healthcare organization to be in
compliance to its security rule, that specifically demands “physical, technical, and administrative safeguards”
that avoids compromising healthcare data while in storage or in transit. The physical safeguards demand that,
facilities must diligently ensure practices that protect the physical surroundings of devices that contains
healthcare data. For instance, protection of the building from fire, environmental hazards, and any other
intrusion, that is, physical or online hacking. Also, the technical safeguards involve the proper management of
people that have access to the information of healthcare, and the mode of transmission. This lays out secure and
authentic conditions of which HIPAA require healthcare information to be communicated. For instance, HIPAA
compliance, require healthcare organizations to implement secured mechanisms that identifies and authenticates
all users of health information or data. Lastly, the administrative safeguards deal with ensuring of solutions that
conforms to HIPAA Security Rule. This involves all activities that monitors the solution, conducting risk
assessments that ensures that the facility complies to HIPAA requirements and that data is not compromised or
at risk.
Strategies to Influence, Impact & Monitor Changes
Healthcare delivery systems should always focus on improving patients’ experiences although it is
associated with various challenges. Moreover, they should reflect the requirement to align the changes in
practices and behavior across numerous areas and levels of the organization (Kavaler & Alexander,
2014). Healthcare organizations should utilize the established approaches and principles to quality
improvements. The principles and approaches provided by the regulatory systems are familiar to healthcare
providers engaged in hospital quality improvement. For quality improvement to occur in healthcare systems;
REGULATORY ENVIRONMENT
4
1. Healthcare practitioners should think of the industry as an integration of related “microsystems” or
systems. As a result, they should mainly focus the minor functional units that perform main functions
involving interaction with customers.
2. Understand and implement the improvement cycle by planning, doing, studying, and acting. In this case,
healthcare practitioners should acknowledge that systems and microsystems are instigated by interacting
and interdependent elements that are non-linear and unpredictable in their functions. Thus, small
changes have significant impacts on the system.
3. Develop action plan and goals by establishing the main objective, which is quality improvement in the
provision of healthcare.
Value Proposition for Change Management
Quality improvement in healthcare organizations is mainly determined by how the organizations manage
their revenue cycle processes (Berwick, 2011). Healthcare organizations are changing from using free-forservice model to a care model based on value. The main reasons for the shift include the following. According
to the National Institute of Diabetes and Digestive and Kidney Diseases (2019), the value-based systems
observe clinical results when effecting the reimbursements. As such, both quality and cost inform the decision
to make differential payments. All the payments observe specific performance criteria. From this angle, the cost
of treatment is shouldered by both the payer and the provider of the service. One of the leading milestones that
the change came with is The Patient Centered Medical Home (PCMH). According to Rosenthal (2008), the
healthcare sectors should:
i.
Implement an automation that minimizes expenses while increasing revenue
ii.
Involve experts who can help the healthcare organizations in managing everything on the revenue
cycle’s back end while offering transparency into the entire medical practitioners.
iii.
Identify RCM “Revenue Cycle Management” partner to connect the organization’s practice
management and EMR
REGULATORY ENVIRONMENT
5
iv.
Focus more on patient care that hospital data exchange between ambulatory and acute environment.
v.
Identify an RCM partner who can help in eliminating the disparate systems.
vi.
Identify RCM partner that will help in keeping the processes of the organizations’ revenue cycle in
place.
vii.
Ensure that predictability is at the forefront of the organization’s decision
viii.
Minimize the red tape such as buying new billing software, which does not enable the organization
to improve its revenue cycle performance.
ix.
Ensure that the organization’s RCM technology is well updated
x.
Focus on ensuring that patients’ expectations are met when making clinical decisions.
Organization’s Compliance with Regulatory Requirements
The compliance professionals in healthcare are usually required to help clinical organizations and
facilities to addresses government regulations that implement usage and privacy standards for patient
information, safeguard healthcare employees, prevent fraud, and enhance the provision of quality care to
patients (Brandrud et al., 2017). The United States department of HHS “Health and Human Services” combats
fraud thus ensuring quality care by insisting healthcare organizations to comply with the HHS programs and
federal healthcare. The HIPPA “Healthcare Information Portability and Accountability ACT” established in
2003 identified why healthcare organizations should comply (United States Department of Health & Human
Services, n.d). The HIPAA indicates that healthcare institutions should ensure that patients’ health data is
confidentially handled and well protected. Healthcare providers are primarily required to implement and ethics
and compliance program that provide an excellent practice guidance.
Legal & Ethical Principles & Mission, Vision, Values
Hospital management depends on values, goals, hierarchy of actions, and choices that help in decision
making. Hospital organization values, mission, and vision are mainly based on social responsibility, ethics,
REGULATORY ENVIRONMENT
6
quality, management, and assistance (Youngberg, 2011). The values are usually integrated into the nation’s
health service irrespective of the organization’s legal status. However, public-private healthcare organizations
add more value to patients, shareholders, and employees than public healthcare organizations. Healthcare
managers acknowledge that human values and ethics form the basis of healthcare functioning. The vision,
values, and mission have the accreditation criteria, indicating that healthcare organizations have an international
reach.
REGULATORY ENVIRONMENT
7
Refences
Behrman S. R., Woodcock, J., Norden, J., Grandinetti, C., & Temple, R. J. (2011). New FDA regulation to
improve safety reporting in clinical trials. The New England Journal of Medicine, 365(1), 3–5.
Berwick, D. (2011). Improving care for people with Medicare [Blog post]. Retrieved
From: http://www.whitehouse.gov/blog/2011/03/31/improvin…
Brandrud, A. S., Nyen, B., Hjortdahl, P., Sandvik, L., Haldorsen, G. S. H., Bergli, M., Bretthauer, M.
(2017). Domains associated with successful quality improvement in healthcare – a nationwide case
study. BMC Health Services Research, 17.
Colins, A. (2018). Potential Risk & Quality Management Issues & How They May Affect the Healthcare
Industry. Retrieved From: https://work.chron.com/potential-risk-quality-management-issues-may-affecthealthcare-industry-25601.html
Heidelberger, M. (n.d). A Description of Risk Assessment Management. Retrieved From:
https://work.chron.com/description-risk-assessment-management-jobs-27565.html
Healthcare Compliance Association. (n.d.). Association. Retrieved From: https://www.hcca-info.org/
Health Insurance Portability and Accountability Act (n.d). HIPAA Compliance and Healthcare Information:
Storing and Communicating Healthcare Information in Compliance with HIPAA. Retrieved From:
Kavaler, F., & Alexander, R. S. (2014). Risk management in health care institutions: Limiting
liability and enhancing care (3rd ed.). Burlington, MA: Jones and Bartlett.
Lanctot, N., & Guay, S. (2014). The aftermath of workplace violence among healthcare workers: A systematic
literature review of the consequences. Aggression and Violent Behavior 19(5) 492-501
National Institute of Diabetes and Digestive and Kidney Diseases. (2019). Changing landscape: From fee-forservice to value-based reimbursement.
Rosenthal, T. C. (2008). The medical home: growing evidence to support a new approach to primary care. The
Journal of the American Board of Family Medicine, 21(5), 427-440.
United States Department of Health & Human Services. (n.d.). Laws & regulations. Retrieved
from http://www.hhs.gov/regulations/index.html
United States Department of Labor, (n.d). Occupational Safety & Health Administration: OSHA Archive.
Retrieved From: https://www.osha.gov/archive/oshinfo/priorities/violence.html
Youngberg, B. J. (2011). Principles of risk management and patient safety. Sudbury, MA: Jones
and Bartlett.
REGULATORY ENVIRONMENT
8
Appendix A
Action Step
Relevant Data
Resource Information
1. Issue.
Workplace violence,
Colins, A. (2018). Potential Risk &
employee’s compensation Quality Management Issues.
injuries, technical failures,
and financial risks.
Patients’ complaints,
breaches of data, high rate
of Health Insurance
Portability and
Accountability Act
(HIPAA) violations.
2. Regulatory
Requirements.
-HIPPA, requires that
organizations reduce the
risks level at a minimum
possibility.
Behrman et al., (2011)
-OSHA does not have
specified standards
governing work place
violence, however, the Act
of 1970, requires that, the
degree of an employer’s
obligation to addressing
work place violence is
governed by the General
Duty Clause.
United States Department of Health &
Human Services n.d.
Healthcare Compliance Association,
n.d
United States Department of Labor:
Occupational Safety & Health
Administration.
3. Risk Management
Implications.
When improving patient
Youngberg (2011).
experiences, healthcare
organizations encounter
various risks. Managing
the risks effectively enable
healthcare organizations to
improve their quality.
4. Environmental
Assessment.
The focus of healthcare
Berwick (2011)
organizations on
Behrman et al., (2011)
improving patients’
experiences. They reflect
the requirement to align
the changes in practices
and behavior across
numerous areas and levels
of the organization.
Healthcare organizations
utilize the established
REGULATORY ENVIRONMENT
9
approaches and principles
to quality improvements.
5. Resources to Address It is important for
Youngberg (2011)
Issue.
healthcare organizations to
manage their revenue cycle
processes effectively to
enhance value proposition
and facilitate the provision
of quality services.
6. Philosophy or Culture The cultural statement of
Statement.
healthcare organizations is
improving the provision of
quality care. Healthcare
organizations acknowledge
that human values and
ethics form the basis of
healthcare functioning.
U.S. Department of Health & Human
Services, (n.d)
Healthcare Compliance Association.
(n.d.)
7. Measurement and
Monitoring.
Healthcare organizations
Berwick (2011)
reflect the requirement to
align the changes in
practices and behavior
across numerous areas and
levels of the organization.
Healthcare organizations
utilize the established
approaches and principles
to quality improvements.
8. Organizational
Improvement.
Quality improvement in
healthcare organizations is
mainly determined by how
the organizations manage
their revenue cycle
processes.
Healthcare Compliance Association.
(n.d.)
Berwick, (2011)
Youngberg, (2011)
9. Ethics Considerations. Ethics in healthcare
ACHE Code of Ethics
organizations are based on
Youngberg, (2011)
social responsibility,
ethics, quality,
management, and
assistance.
1/29/2020
Capella University Scoring Guide Tool
MHA-FP5014
u01a1 – Regulatory Environment – Executive Summary
Learner: Hagar , Duku Osei
OVERALL COMMENTS
Much clearer submission and well written; however, while correct grammar, punctuation, and mechanics are correct,
some new APA error appeared in this submission. For example, the header on the cover page should be I the same
font as the rest of the text; the page number should be flush right margin in all pages; the entire paper should have 1”
left, right, top, bottom margins; the references are not in correct APA format and should also be at 1” margins.
RUBRICS
https://scoringguide.capella.edu/grading-web/gradingdetails
1/8
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Capella University Scoring Guide Tool
CRITERIA 1
Conduct a proactive assessment based on the existing regulations and requirements.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE:
Does not conduct a proactive assessment based on the existing regulations and requirements.
BASIC:
Conducts a proactive assessment based on the existing regulations and requirements, but the assessment
is either incomplete or flawed.
PROFICIENT: Conducts a proactive assessment based on the existing regulations and requirements.
DISTINGUISHED:
Conducts a proactive assessment based on the existing regulations and requirements and indicates how
regulations and requirements are likely to change, going forward.
Comments:
Attempt 2 Comments: The new information provided greater clarity
Attempt 1 Comments: While you provided excellent information, the assignment called for “a description of
an organization’s compliance” …meaning a specific organization. This very well- crafted discussion seems too
broad, based on the “scenario in the Instructions (see Preparation). For example, “Write a brief description of
the risk management issue you selected”. This assessment focuses on one organization (what organization
are you discussing?) and one risk management issue” (what specific risk management issue are you working
on?)
https://scoringguide.capella.edu/grading-web/gradingdetails
2/8
1/29/2020
Capella University Scoring Guide Tool
CRITERIA 2
Describe strategies to influence, impact, and monitor the needed changes for quality
improvement.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE:
Does not describe strategies to influence, impact, and monitor the needed changes for quality improvement.
BASIC:
Describes strategies to influence, impact, and monitor the needed changes for quality improvement, but the
description is either incomplete or flawed.
PROFICIENT:
Describes strategies to influence, impact, and monitor the needed changes for quality improvement.
DISTINGUISHED:
Describes strategies to influence, impact, and monitor the needed changes for quality improvement, and
outlines challenges to implement those strategies.
Comments:
Attempt 2 Comments: You did a good job describing strategies to influence, impact, and monitor the needed
changes for quality improvement, and outlines challenges to implement those strategies.
Attempt 1 Comments: This discussion might work depending on the “risk management issue” selected
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3/8
1/29/2020
Capella University Scoring Guide Tool
CRITERIA 3
Develop a value proposition for change management that incorporates quality- and riskmanagement concepts.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE:
Does not develop a value proposition for change management that incorporates quality- and riskmanagement concepts.
BASIC:
Develops a value proposition for change management that incorporates quality- and risk-management
concepts, but the proposition is either incomplete or flawed.
PROFICIENT:
Develops a value proposition for change management that incorporates quality- and risk- management
concepts.
DISTINGUISHED:
Develops a value proposition for change management that incorporates quality and risk management
concepts, and supports the proposition with citations from the literature.
Comments:
Attempt 2 Comments: Your proposition for change management that incorporates quality and risk
management concepts, and supports the proposition with citations from the literature was well discussed.
Attempt 1 Comments: This discussion might work depending on the “risk management issue” selected
https://scoringguide.capella.edu/grading-web/gradingdetails
4/8
1/29/2020
Capella University Scoring Guide Tool
CRITERIA 4
Create an executive summary of a risk-management issue that describes an organization’s
compliance with a regulatory requirement.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE:
Does not create an executive summary of a risk management issue that describes an organization’s
compliance with a regulatory requirement.
BASIC:
Creates an executive summary of a risk management issue that describes an organization’s compliance with
a regulatory requirement, but the summary is either unclear or incomplete.
PROFICIENT:
Creates an executive summary of a risk management issue that describes an organization’s compliance with
a regulatory requirement.
DISTINGUISHED:
Creates an executive summary of a risk management issue that describes an organization’s compliance
with a regulatory requirement and the executive summary is concise, complete, and convincing.
Comments:
Attempt 2 Comments: The executive summary of a risk management issue that describes an organization’s
compliance with a regulatory requirement and the executive summary is concise, complete, and convincing.
Attempt 1 Comments: This discussion might work depending on the “risk management issue” selected
https://scoringguide.capella.edu/grading-web/gradingdetails
5/8
1/29/2020
Capella University Scoring Guide Tool
CRITERIA 5
Integrate legal and ethical principles and also organizational mission, vision, and values into
the decision-making process.
COMPETENCY
Analyze applicable legal and ethical institution-based values as they relate to quality assessment.
NON_PERFORMANCE:
Does not integrate legal and ethical principles and also organizational mission, vision, and values into the
decision-making process.
BASIC:
Integrates legal and ethical principles and also organizational mission, vision, and values into the decisionmaking process, but the integration is either incomplete or flawed.
PROFICIENT:
Integrates legal and ethical principles and also organizational mission, vision, and values into the decisionmaking process.
DISTINGUISHED:
Integrates legal and ethical principles and organizational mission, vision, and values into the decisionmaking process and describes the internal and external contexts for decision-making.
Comments:
Attempt 2 Comments: You did well Integrating legal and ethical principles and organizational mission, vision,
and values into the decision-making process and describes the internal and external contexts for decisionmaking.
Attempt 1 Comments: This discussion might work depending on the “risk management issue” selected
https://scoringguide.capella.edu/grading-web/gradingdetails
6/8
1/29/2020
Capella University Scoring Guide Tool
CRITERIA 6
Write clearly and concisely, with well-organized communication that is supported by
relevant evidence.
COMPETENCY
Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in
health care administration.
NON_PERFORMANCE:
Does not write clearly and concisely, with well-organized communication that is supported with relevant
evidence.
BASIC:
Writes clearly and concisely, with well-organized communication that is supported with relevant evidence,
but with some errors or lapses.
PROFICIENT:
Writes clearly and concisely, with well-organized communication that is supported with relevant evidence.
DISTINGUISHED:
Writes clearly and concisely, with well-organized communication that is supported with relevant evidence
from appropriate peer-reviewed journals.
Comments:
Attempt 2 Comments: Your writing is clear and concisely, that is supported with relevant evidence from
appropriate peer-reviewed journals.
Attempt 1 Comments: While the writing you submitted is excellent, it does not completely conform with the
Instructions. For example, “Write a brief description of the risk management issue you selected. Your
discussion seems very global.
https://scoringguide.capella.edu/grading-web/gradingdetails
7/8
1/29/2020
Capella University Scoring Guide Tool
CRITERIA 7
Use correct grammar, punctuation, and mechanics as expected of a graduate learner.
COMPETENCY
Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in
health care administration.
NON_PERFORMANCE:
Does not use correct grammar, punctuation, and mechanics as expected of a graduate learner.
BASIC:
Uses correct grammar, punctuation, and mechanics as expected of a graduate learner, but with some
errors or lapses.
PROFICIENT: Uses correct grammar, punctuation, and mechanics as expected of a graduate learner.
DISTINGUISHED:
Uses correct grammar, punctuation, and mechanics as expected of a graduate learner, conforming to all
APA standards and guidelines.
Comments:
Attempt 2 Comments: While correct grammar, punctuation, and mechanics are correct, some new APA error
appeared in this submission. For example, the header on the cover page should be I the same font as the rest
of the text; the page number should be flush right margin in all pages; the entire paper should have 1” left,
right, top, bottom margins; the references are not in correct APA format and should also be at 1” margins
Attempt 1 Comments: Great discussion, but seems too global based on the Instruction (See Preparation).
Excellent organization and format.
https://scoringguide.capella.edu/grading-web/gradingdetails
8/8
Running head: RISK FINANCING
1
Risk Financing
Hagar Duku Osei
Capella University
MHA-FP5014- Health Care Quality Risk Regulatory Compliance
Assessment 2
January, 2020
RISK FINANCING
2
GRACE HEALTHCARE SYSTEM (GHS)
TO: Risk Management Team
From: Hagar Duku Osei
Cc: All Departmental Leaders
Date: January 29, 2020
Re: Financial Risk between the Management and the Improvement of Quality Care
Over the recent past, Grace Healthcare System has been facing a constant tension
between the management of medical errors and the improvement of the quality of care. It is a
case that attracted the attention of the management because the hospital is at the risk of failing in
performance and a drop in the financial outcome. Therefore, certain factors need to be addressed
relating to the financial risks that the organization stand to face and the measures through which
these can be mitigated effectively in order to allow and run the operations of the hospital
successfully for the improvement of the organization.
The involved financial performance indicators include incidence if catastrophic
expenditures in health which involves a headcount indicator that is measured as the household
proportion within a population whose expenditures in health exceed a critical level (Kavaler &
Alexander, 2014). The second indicator of financial risk is the catastrophic overshoot which
mainly looks at the extent by which expenditures in health exceed the threshold that is defined.
RISK FINANCING
3
Measurement of the above indicators covers the whole population because financial risks occur
in any group of the population, but the advantage comes in because the indicators are only
specialized to health organizations and so no chances of political manipulation of the involved
thresholds.
The strategies used in the identification of risk financing issues include the following; the
first strategy is through establishing the context of the financial issue as this helps in the
identifying the risk and an understanding of it in a better way. The second strategy is identifying
and acknowledging the risk at hand as it helps in better analysis and understanding of the issue.
The other strategy involves an analysis of the risk through understanding the underlying risk and
the existing control measures that can be used to address the issue. The above strategies will at
the end, enable the organization to stand tall and resolve the challenge at hand. The major
challenge that encounters these strategies includes the aspect of adequate resources which are
fundamental in the analysis and their implementation for a better outcome and financial success
for the organization.
It has also been noticed that financial risk in the management sector is imminent and is
growing to be a great challenge. The recommendations for this challenge include stressing and
strengthening of management and accountability among the financial managers because inputs
impact the outputs of the organization. Management and governance are important especially in
areas of decision making and monitoring of financial cash flow and expenditures in the
organization at all time. The other recommendation would be for Grace Healthcare System to
adopt a multidisciplinary strategy that is needed in the achievement of broader management of
risk in order to avoid unexpected consequences (Graber et al., 2016). It is a recommendation that
RISK FINANCING
4
goes to the whole management outlay of the organization because this concept relates to the
general organization and operation of the models involved in financing.
The ethical financial risk obligations for an accountable care organization involve issue
such as the management facing the challenge of fair resource allocation, this is an internal
obligation by the management to allocate resources fairly but in the face of financial matters, it
might be an ethical challenge for the management. The other ethical challenge is clinicians and
health officers’ manner in which they address competition by other health organizations; this is
an external context obligation because it would require the clinicians to address such issue by a
cost-control measure (Kreindler et al., 2012). Various legal measures that accountable care
organizations face involve the contracts that involve the facilities and the providers which are
supposed to be honored by the organizations. The government regulations that relate to the
workers and their working environment also are factors that accountable care organizations face.
RISK FINANCING
5
References
Graber, A. D., Bhandary, A., & Rizzo, M. (2016). Ethical practice under accountable care. HEC
Forum, 28(2), 115–128.
Kavaler, F., & Alexander, R. S. (2014). Risk management in health care institutions: Limiting
liability and enhancing care (3rd ed). Burlington, MA: Jones and Bartlett.
Kreindler, S. A., Larson, B. K., Wu, F. M., Carluzzo, K. L., Gbemudo, J. N., Struthers, A.,
Fisher, E. S. (2012). Interpretations of integration in early accountable care
organizations. Milbank Quarterly, 90(3), 457–483.
1/30/2020
Capella University Scoring Guide Tool
MHA-FP5014
u02a1 – Risk Financing
Learner: Hagar , Duku Osei
OVERALL COMMENTS
Although well written, please consider using headings that separate discussion Criterion (as demonstrated in the
Template that was provided). In future assignments this may eliminate any guess work on behalf of the reader and
could reduce the number of Attempts. Please be sure to review all of the comments on the Scoring Guide. As a
reminder, please highlight any additions and/or corrections
RUBRICS
https://scoringguide.capella.edu/grading-web/gradingdetails
1/6
1/30/2020
Capella University Scoring Guide Tool
CRITERIA 1
Identify key performance indicators and measures associated with a specific riskmanagement issue.
COMPETENCY
Apply a risk-management model or framework to a specific risk-management priority.
NON_PERFORMANCE:
Does not identify key performance indicators and measures associated with a specific risk management
issue.
BASIC:
Identifies key performance indicators and measures associated with a specific risk management issue, but
the key indicators or measures are either incomplete or flawed.
PROFICIENT:
Identifies key performance indicators and measures associated with a specific risk management issue.
DISTINGUISHED:
Identifies key performance indicators and measures associated with a specific risk management issue
and cites appropriate current literature to support the identification.
Comments:
You did a great job Identifying key performance indicators and measures associated with your specific risk
management issue and you cited appropriate current literature to support the identification.
https://scoringguide.capella.edu/grading-web/gradingdetails
2/6
1/30/2020
Capella University Scoring Guide Tool
CRITERIA 2
Discuss strategies used to identify risk financing issues in a selected organization.
COMPETENCY
Apply a risk-management model or framework to a specific risk-management priority.
NON_PERFORMANCE:
Does not discuss strategies used to identify risk financing issues in a selected organization.
BASIC:
Discusses strategies used to identify risk financing issues in a selected organization, but the discussion is
either incomplete or flawed.
PROFICIENT: Discusses strategies used to identify risk financing issues in a selected organization.
DISTINGUISHED:
Discusses strategies used to identify risk financing issues in a selected organization and outlines
challenges to implementing those strategies.
Comments:
Your strategies used to identify risk financing issues in your selected organization and outline of challenges to
implementing those strategies was well discussed.
https://scoringguide.capella.edu/grading-web/gradingdetails
3/6
1/30/2020
Capella University Scoring Guide Tool
CRITERIA 3
Provide recommendations for risk financing options related to an identified financial risk
issue.
COMPETENCY
Apply a risk-management model or framework to a specific risk-management priority.
NON_PERFORMANCE:
Does not provide recommendations for risk financing options related to an identified financial risk issue.
BASIC:
Provides recommendations for risk financing options related to an identified financial risk issue, but the
recommendations are either incomplete or flawed.
PROFICIENT:
Provides recommendations for risk financing options related to an identified financial risk issue.
DISTINGUISHED:
Provides recommendations for risk financing options related to an identified financial risk issue and
supports the recommendations with citations from the literature.
Comments:
The recommendations your provided for risk financing options related to the identified financial risk issue were
well written and relevant. The citation provided support your recommendations.
https://scoringguide.capella.edu/grading-web/gradingdetails
4/6
1/30/2020
Capella University Scoring Guide Tool
CRITERIA 4
Summarize the legal and ethical financial risk obligations of an accountable care
organization.
COMPETENCY
Analyze applicable legal and ethical institution-based values as they relate to quality assessment.
NON_PERFORMANCE:
Does not summarize the legal and ethical financial risk obligations of an accountable care organization.
BASIC:
Summarizes the legal and ethical financial risk obligations of an accountable care organization, but the
summary is either incomplete or flawed.
PROFICIENT:
Summarizes the legal and ethical financial risk obligations of an accountable care organization.
DISTINGUISHED:
Summarizes the legal and ethical financial risk obligations of an accountable care organization and
describes the internal and external contexts for those obligations.
Comments:
Your summary of the legal and ethical financial risk obligations of an accountable care organization and
description of the internal and external contexts for those obligations was described very well
https://scoringguide.capella.edu/grading-web/gradingdetails
5/6
1/30/2020
Capella University Scoring Guide Tool
CRITERIA 5
Prepare a professional memo summarizing a risk financing issue for a specified
organization.
COMPETENCY
Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in
health care administration.
NON_PERFORMANCE:
Does not prepare a professional memo summarizing a risk financing issue for a specified organization.
BASIC:
Prepares a memo summarizing a risk financing issue for a specified organization, but with some errors or
lapses.
PROFICIENT:
Prepares a professional memo summarizing a risk financing issue for a specified organization.
DISTINGUISHED:
Prepares a professional memo summarizing a risk financing issue for a specified organization that is
concise, complete, and convincing.
Comments:
You prepared a professional memo summarizing a risk financing issue for a specified organization that is
concise, complete, and convincing; however, when citing 3-5 authors (Graber) ALL authors must be cited the
first time, then you can use et al
https://scoringguide.capella.edu/grading-web/gradingdetails
6/6
1
Running Header: COST BENEFIT ANALYSIS
Health Care Cost Benefit Analysis
Hagar Duku Osei
Capella University
MHA-FP5006 Health Care Finance and Reimbursement
Assessment 3- Cost Benefit Analysis
January, 2020
2
Running Header: COST BENEFIT ANALYSIS
Analysis of Cost and Benefits of Purchasing Equipment for A Health Care Organization.
When benefits are not summarized, decision-makers who are overwhelmed with
information may focus on one or two and lose sight of the rest. Cost and Benefit Analysis (CBA)
allows the aggregation of health and non-health benefits because its values benefit as well as costs
in money terms (Russell, 2015).
At the heart of a cost benefit analysis is the accurate determination of cost and
quantification of benefit. Measuring these parameters can be complex. The necessary inputs for
the costing were obtained by direct inspection, interview with staff and examination of documents
from vendors. Cost of inputs for the MRI center were divided into cost of MRI Machine, staff
salary, electricity cost, contrast, maintenance cost of the machine, staff hiring, building structure
and outsourcing. The benefits of purchasing an MRI Machine are both monetary and nonmonetary. They include, patients seen on site (co-payment), quicker results turnaround, increased
clinical productivity, improved customer satisfaction, increased patient access to care, removal of
outsourced contract and insurance reimbursement. All these items were included in the analysis.
The Cost-Benefit Analysis method was then used to determine the economic viability of
purchasing an MRI Machine. This was done by inputting all costs and benefits for each year as
future value (FV) expectations, converting them into present value (PV) expectations and
subtracting the total PV benefits from the total PV costs to get the net benefit. The net benefit was
positive and supports the purchase of an MRI Machine. Overall, the purchase of the MRI Machine
will be more beneficially to the hospital as evident in the benefits listed in the analysis and for also
3
Running Header: COST BENEFIT ANALYSIS
more convenient for patients since they would not have to schedule an appointment at another
facility.
The Concept of Opportunity Cost.
The concept of scarcity leads to the idea of opportunity cost. The opportunity cost of an
action is what you must give up when you make that choice. Another way to say this is: it is the
value of the next best opportunity. Opportunity cost is a direct implication of scarcity. People have
to choose between different alternatives when deciding how to spend their money and their time
(Mankiw, 2015).
Health care organizations have to make difficult decisions as to how healthcare is financed
and scarce available resources are allocated to meet the health needs of their patients. To determine
whether the MRI Machine offers value for money and will be cost effective, the organization must
make a comparison to the opportunity cost that will be given up. The opportunity cost here is
outsourcing where patients who need an MRI must schedule an appointment at another facility,
adding time and cost to any treatment they may need. After the organization has made that
comparison, a choice will have to be made based on the cost and benefits of purchasing an MRI
Machine. Health care systems need to be designed in ways that support the generation and pooling
of health care resources and the allocation of those resources to deliver health benefits to
constituent populations (Revill et al, 2015).
How A Cost Benefit Analysis Aligns with Organizational Needs and Future Growth.
Essentially, a cost benefit analysis involves adding up the benefits of a business decision
or policy and comparing the benefits with the associated costs. Organizations need to make
4
Running Header: COST BENEFIT ANALYSIS
objective decisions and set realistic goals. This is not always easy to do. Different projects might
entail different types of expenses and details. A cost-benefit analysis frames all projects in simple
terms and enables organizations compare projects of all types no matter how dissimilar they are.
CBA helps organizations estimate the net benefit of a project. An organization might know
the exact cost of a new product, but it is impossible to know exactly the benefits that will be derived
from that new. Estimating costs and benefits can however give an organization an idea of the
lowest amount of revenue a new project needs to produce to break even and help set revenue goals
to make projects profitable. In effect, organizations will be able to make objective and justifiable
decisions before entering into any venture (Hamel, 2018). It covers the range of benefits and costs,
whether they have market prices or not. CBA needs to incorporate direct and indirect social
benefits that accrue to society whether they are tangible or intangible in nature. CBA includes
techniques to value such unpriced benefits, both current and future, in present-dollar terms
(Thomas et al, 2019).
Recommended Plan of Action Based on A Cost-Benefit Analysis.
Due to the high cost involved in purchasing an MRI Machine and setting up an MRI center,
the decision to buy the machine cannot be based on stakes. An analysis must be conducted to show
that the purchase will be worth it. The analysis conducted will be used to measure the benefits of
purchasing the MRI Machine minus the costs associated with the purchase. Based on the analysis
conducted, the MRI Machine should be purchased because, the benefits it will bring to the
organization exceeds the cost of purchase and implementation of an MRI center. The action plan
should be able to cover to fully cover the benefits of the purchase to both the organization and the
patients. Patients satisfaction should also be key.
5
Running Header: COST BENEFIT ANALYSIS
The organization should gather the needed funds for the purchase of the machine and the
setting up of the MRI center as the first step in the action plan. After funds have been gathered,
the organization should draw a budget of how funds will be used in other to stay on track as regards
the project and not use the money for other items that may not be of priority. After purchase of the
machine, the organization should take steps to hire and recruit staff such as technicians and
radiologist who will work with the machine. These staff should also be given extra training in
addition to the knowledge they already have on using the MRI Machine. This will enhance
productivity as staff will be equipped with the skills, they need to operate the machine. Lastly, to
ensure that the machine has a longer life span, the organization should establish rules, procedures
and strategies to follow when working with the machine.
Conclusion
A lot of attention has not been paid to economic issues in the medical setting, however, by
accepting the need for cost-effective medical decision making, health care practitioners are looking
for newer strategic tools to control costs without affecting the quality of patient care.
The cost benefit analysis indicates that, setting up an MRI center will be beneficial to the
organization. Apart from the benefits listed above, the MRI Machines will generate additional
income for the organization as demand for its usage increases over the years.
6
Running Header: COST BENEFIT ANALYSIS
References
Hamel, G. (2018). Advantages of a Cost-Benefit Analysis. Retrieved from:
https://www.investopedia.com/terms/c/cost-benefitanalysis.asp
Mankiw, G. (2015). Principles of Microeconomics 7th edition. South-Western College Publishing.
Russell, L. B. (2015.) Population Health: Behavioral and Social Science Insights: The Science of
Making Better Decisions about Health. Agency for Healthcare Research and Quality.
21(3):21-25.
Revill, P. Ochalek, J. Lomas, J. Nakamura, R. Woods, B. Rollinger, Suhrcke, A. Sculpher, M. &
Claxton, K. (2015). Cost-effectiveness thresholds: Guiding health care spending for
population health improvement. Centre for Health Economics, University of York, for the
International Decision Support Initiative.
Thomas, V., & Chindarkar, N. (2019). The Picture from Cost-Benefit Analysis. In: Economic
Evaluation of Sustainable Development. Palgrave Macmillan, Singapore.
COST-BENEFIT ANALYSIS (CBA)
Step 1: Enter cost amounts as future value (FV) expectations. The future value will be automatically converted to present value (PV). Step 2: Enter benefit amounts as FV
expectations. The FV will automatically be converted to PV. Step 3: Subtract the total PV benefits from the total PV costs to get the net benefit.
Current Year
(CY)
Costs
CY +1
CY +2
CY +3
CY +4
MRI Machine
1.000.000
Staff Salary
235.000
Electricity
Contrast (gadolinium)
Maintenance cost of MRI
Outsourcing
235.342
$
$
4.000,00
266.000
$
4.000,00
370.000
$
4.000,00
$26.000,00
$26.000,00
$26.000,00
26.000,00
130.000
100.000
100.000
100.000
345.000,00
(
Staff Hiring
Building Structure
257.005
257.148
289.054
345.267
1.200.000
$80.000,00
$80.000,00
$80.000,00
Total Costs (Future Value)
$
345.000,00
2848005
702490
765.054
925.267
Total Costs (Present Value)
$
345.000,00
2792161,765
675211,4571
720927,4713
854803,6858
blank row
Benefits
Current Year
(CY)
Patients Seen On Site
CY +1
$
CY +2
84.000,00
$
CY +3
98.000,00
$
CY +4
102.000,00
$
116.000,00
Quicker Results Turnaround
Increased Clinic Productivity
Improved Customer Satisfaction
Inrcreased Patient Access to Care
Removal of Outsourced Contract
$
Insuarance Reimbursement
345.000,00
$1.000.435,00
$1.027.856,00
$1.029.678,00
$1.102.564,00
Total Benefits (Future Value)
$
–
1429435
1125856
1131678
1218564
Total Benefits (Present Value)
$
–
1401406,863
1082137,639
1066405,455
1125764,778
1,02
1,04
1,06
1,08
blank row
Present Value Discount Rate
PV Denominator
Net Benefit
End of worksheet
2%
1,00
lue (PV). Step 2: Enter benefit amounts as FV
o get the net benefit.
CY +5
Total Costs
$
–
$
–
$ 5.388.104,38
CY +5
Total Benefits
$
–
$
–
$ 4.675.714,73
1,10
$ (712.389,64)
2/6/2020
Capella University Scoring Guide Tool
MHA-FP5014
u03a1 – Cost-Benefit Analysis
Learner: Hagar , Duku Osei
OVERALL COMMENTS
Attempt 1 Comments: While you provided a volume of information, I’m not sure which Criterion some of the
discussion was supposed to cover; while other Criteria seemed to not be discussed at all or vaguely covered. Again, I
would encourage you to use the APA Templates that have been provided, to help stay track and be sure that
ALL required Criterion are discussed and easily recognized. Also, it is important to carefully review the comments
from the previously graded submissions and make appropriate corrections, as I seem to see the same errors
continue on to the next Assessment. Using the Templates as provided and making appropriate corrections could
eliminate the need for multiple submissions for each Assessment. These will be more critically graded in the future as
“Non-Performance. Please be sure to review all of the comments on the Scoring Guide. As a reminder, please
highlight any additions and/or corrections.
RUBRICS
https://scoringguide.capella.edu/grading-web/gradingdetails
1/7
2/6/2020
Capella University Scoring Guide Tool
CRITERIA 1
Specify the focus and stakeholders for a cost-benefit analysis.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE: Does not specify the focus and stakeholders for a cost-benefit analysis.
BASIC:
Specifies the focus and stakeholders for a cost-benefit analysis, but the focus is too broad or narrow and
some stakeholders are omitted.
PROFICIENT: Specifies the focus and stakeholders for a cost-benefit analysis.
DISTINGUISHED:
Specifies the focus and stakeholders for a cost-benefit analysis and explains why the stakeholders would be
interested in the outcome of the analysis.
Comments:
While you briefly discussed stakeholders on page 6, you are to be more specific as to who those Stakeholder
are.
https://scoringguide.capella.edu/grading-web/gradingdetails
2/7
2/6/2020
Capella University Scoring Guide Tool
CRITERIA 2
Develop a value proposition for change management that incorporates quality- and riskmanagement concepts.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE:
Does not develop a value proposition for change management that incorporates quality- and riskmanagement concepts.
BASIC:
Develops a value proposition for change management that incorporates quality- and risk- management
concepts, but the value proposition is either incomplete or flawed.
PROFICIENT:
Develops a value proposition for change management that incorporates quality- and risk- management
concepts.
DISTINGUISHED:
Develops a value proposition for change management that incorporates quality- and risk- management
concepts and cites appropriate current literature to support the proposition.
Comments:
You developed a good value proposition for change management that incorporates quality- and riskmanagement concepts and cited appropriate current literature to support the proposition
https://scoringguide.capella.edu/grading-web/gradingdetails
3/7
2/6/2020
Capella University Scoring Guide Tool
CRITERIA 3
Describe strategies to influence and impact the needed changes for quality improvement.
COMPETENCY
Conduct an environmental assessment to identify quality- and risk-management priorities for a health care
organization.
NON_PERFORMANCE:
Does not describe strategies to influence and impact the needed changes for quality improvement.
BASIC:
Describes strategies to influence and impact the needed changes for quality improvement, but the strategies
are either inappropriate or ineffective.
PROFICIENT: Describes strategies to influence and impact the needed changes for quality improvement.
DISTINGUISHED:
Describes strategies to influence and impact the needed changes for quality improvement and cites
relevant sources in the literature to justify the strategies.
Comments:
Good job discussing strategies to influence and impact the needed changes for quality improvement and cites
relevant sources in the literature to justify the strategies.
https://scoringguide.capella.edu/grading-web/gradingdetails
4/7
2/6/2020
Capella University Scoring Guide Tool
CRITERIA 4
Conduct a cost-benefit analysis for a risk-management intervention.
COMPETENCY
Apply a risk-management model or framework to a specific risk-management priority.
NON_PERFORMANCE: Does not conduct a cost-benefit analysis for a risk management intervention.
BASIC:
Conducts a cost-benefit analysis for a risk management intervention, but the analysis is either incomplete
or flawed.
PROFICIENT: Conducts a cost-benefit analysis for a risk management intervention.
DISTINGUISHED:
Conducts a cost-benefit analysis for a risk management intervention and describes the assumptions on
which the analysis is based.
Comments:
Although you provided a Cost-Benefit Analysis, I believe you are to use the CBA document provided under
“Resources”. This document was also emailed to you.
https://scoringguide.capella.edu/grading-web/gradingdetails
5/7
2/6/2020
Capella University Scoring Guide Tool
CRITERIA 5
Identify relevant internal and external benchmarks, using a systems-based perspective.
COMPETENCY
Analyze the process and outcomes for a care quality- or risk-management issue.
NON_PERFORMANCE:
Does not identify relevant internal and external benchmarks, using a systems-based perspective.
BASIC:
Identifies internal and external benchmarks, using a systems-based perspective, but the benchmarks are not
relevant or of questionable value.
PROFICIENT: Identifies relevant internal and external benchmarks, using a systems-based perspective.
DISTINGUISHED:
Identifies relevant internal and external benchmarks, using a systems-based perspective, and clearly
identifies the source of each benchmark.
Comments:
I don’t see where “internal/External benchmarks” are discussed.
https://scoringguide.capella.edu/grading-web/gradingdetails
6/7
2/6/2020
Capella University Scoring Guide Tool
CRITERIA 6
Use correct grammar, punctuation, and mechanics as expected of a graduate learner.
COMPETENCY
Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in
health care administration.
NON_PERFORMANCE:
Does not use correct grammar, punctuation, and mechanics as expected of a graduate learner.
BASIC:
Uses correct grammar, punctuation, and mechanics as expected of a graduate learner, but with some
errors and lapses.
PROFICIENT: Uses correct grammar, punctuation, and mechanics as expected of a graduate learner.
DISTINGUISHED:
Uses correct grammar, punctuation, and mechanics as expected of a graduate learner, conforming to all
APA standards and guidelines.
Comments:
Some basic APA errors included: 1) the headers and page #s should be on the same line; 2), if you provide an
Abstract, it must be in correct format; 3) when citing 3-5 authors all authors must be listed the first time (Baker,
Jones, & Smith, 2020); then you can use (Baker, et al, 2020).
https://scoringguide.capella.edu/grading-web/gradingdetails
7/7
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