*******Both Discussion and Assignment has to be on different pages. Please follow all instruction of both discussion and Assignment. Both has to be in APA 7 format. ******

Learning Resources

Required Readings

Penner, S. J. (2017). Economics and financial management for nurses and nurse leaders (3rd ed.). New York, NY: Springer Publishing.

• Chapter 9, “Comparing Costs and Benefits” (pp. 217–229)
• Chapter 10, “Writing a Business Plan” (pp. 249–259)

Pink, G. H., & Song, P. H. (2018) Gapenski’s cases in healthcare finance (6th ed.). Chicago, IL: Health Administration Press.

• Case Study 5, “Shasta Family Practice (Cost-Benefit Analysis)”
• Excel Spreadsheet for Shasta Family Practice

Putra, L. D. (2008). How to calculate cost variances? [8 types]. Retrieved from http://accounting-financial-tax.com/2008/12/how-to…

Giffin, R. B., & Giffin, M. F. (n.d.). Cost-benefit analysis: A primer for community health workers. Retrieved February 4, 2019, from https://azprc.arizona.edu/sites/default/files/CHWt…

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.

By Day 6

Respond to at least two of your colleagues by suggesting an additional cost or benefit that can or can’t be quantified in this case. Consider the benefits to the patient with regard to quality of care, ease of getting an appointment, or other benefits that physician extenders may provide.

Submission and Grading Information

Grading Criteria

Post by Day 4 and Respond by Day 6

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- to 2-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- to 2-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 (2–3 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.

By Day 7

Submit your Assignment by Day 7.

Submission and Grading Information

To submit your completed Assignment for review and grading, do the following:

• Please save your Assignment using the naming convention “WK5Assgn+last name+first initial.(extension)” as the name.
• Click the Week 5 Assignment Rubric to review the Grading Criteria for the Assignment.
• Click the Week 5 Assignment link. You will also be able to “View Rubric” for grading criteria from this area.
• Next, from the Attach File area, click on the Browse My Computer button. Find the document you saved as “WK5Assgn+last name+first initial.(extension)” and click Open.
• If applicable: From the Plagiarism Tools area, click the checkbox for I agree to submit my paper(s) to the Global Reference Database.
• Click on the Submit button to complete your submission.

Grading Criteria

Check Your Assignment Draft for Authenticity

Submit Your Assignment by Day 7