The Importance of Cost-Benefit Analysis (Coursework Sample)

Cost-Benefit Analysis
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Introduction
The covid19 epidemic erupted in Wuhan City, China, in December 2019, which later rapidly spread globally, drastically affected many countries' health systems because of its highly contagious nature. Covid19 is a flu-like illness that causes severe acute respiratory syndromes, and some of the symptoms include; persistent cough, body fever, breathing difficulties, general fatigue, impaired sense of taste or smell. Sometimes patients don’t exhibit any symptoms. Covid19 patients require urgent but cautious treatment because of its nature of being highly contagious. In America, Covid19 has proven to be a challenge to our health system; many hospitals {including where I work at Pennsylvania Hospital} have already exhausted their available resources in the fight against the pandemic.
Pennsylvania Hospital is a private hospital and has a bed capacity of 1,515 patients. Pennsylvania Hospital is a teaching practice hospital located in Center City Philadelphia and draws most of its trainees from the University of Pennsylvania. It's a key player in the city of Philadelphia's health care system.
Construction of 1000 Bed Capacity Temporary Ward
Pennsylvania Hospital is considering expanding its facility to be able to serve Covid19 patients better, most of whom reside in Philadelphia City and who come searching for treatment in our facility (Sunstein,2017). This paper seeks to assess the CBA of building a 1,000-bed capacity temporary ward for patients suffering acute respiratory syndromes Covid19.
Cost-Benefit Analysis (CBA) Template
Ginés describes CBA as a model of examining a project and assessing its general benefits and the respective costs, both economic and social. This study used the template below to assess the CBA of a Pennsylvania Hospital project.
-1421016129000 Direct Costs (staff, purchase cost, etc.)Revenue Benefits (sales, increased production, etc.)
-14287593345The estimated cost of building a 1,000-bed capacity temporary ward $200,000,000The estimated cost of buying beds and other related medical equipment $350,000,000Estimated additional direct staff cost $235,500,0000
The estimated cost of building a 1,000-bed capacity temporary ward $200,000,000The estimated cost of buying beds and other related medical equipment $350,000,000Estimated additional direct staff cost $235,500,000
6026989-29042The average cost of treating one Covid19 patient is $34,927.43, and it takes two weeks to treat Covid19 symptomatic patients successfully. In one year, each bed will serve at least 27 patients. That implies that the new Covid19 ward will serve at least (27x1000) 27,000 symptomatic patients.The anticipated revenues to be garnered from the new Covid19 temporary ward add up to $943,029,000 annually.0The average cost of treating one Covid19 patient is $34,927.43, and it takes two weeks to treat Covid19 symptomatic patients successfully. In one year, each bed will serve at least 27 patients. That implies that the new Covid19 ward will serve at least (27x1000) 27,000 symptomatic patients.The anticipated revenues to be garnered from the new Covid19 temporary ward add up to $943,029,000 annually.
Indirect Costs (overhead costs, utilities, rent, etc.)
-223927198755The finance department has evaluated that the administration cost and other utility overheads cost, and they estimate that it would cost $1,000,000 annually to run the ward.0The finance department has evaluated that the administration cost and other utility overheads cost, and they estimate that it would cost $1,000,000 annually to run the ward.
Intangible Costs (impact on customer/patients/providers, delays in service, etc.)
-14089886444The introduction of a new unit specialized with Covid19 patients might disorient patients, and in some instances, the disorientation might cause a delay in admission.Since the ward will be constructed where patients and their acquittances are used for parking their cars, they will have to seek alternative parking spaces when visiting the hospital.0The introduction of a new unit specialized with Covid19 patients might disorient patients, and in some instances, the disorientation might cause a delay in admission.Since the ward will be constructed where patients and their acquittances are used for parking their cars, they will have to seek alternative parking spaces when visiting the hospital.
69850427356Patients are guaranteed high-quality healthcare services and patient satisfaction.Covid19 risk allowance to staff working in the covid19 facility will improve staff productivity and morale to diligently work and love what they do.Reduced the queuing time on pre-admission care for Covid19 patients.Reduce the risk of infecting patients who visit the hospital with other illness which are not related to Covid19..0Patients are guaranteed high-quality healthcare services and patient satisfaction.Covid19 risk allowance to staff working in the covid19 facility will improve staff productivity and morale to diligently work and love what they do.Reduced the queuing time on pre-admission care for Covid19 patients.Reduce the risk of infecting patients who visit the hospital with other illness which are not related to Covid19..Intangible Benefits (improved patient/employee/provider satisfaction, higher morale, better patient safety, quality, etc.)
Opportunity Costs (What’s the trade-off for doing this)
-14287559690The construction will occur just next to the main hospital administration block in an open field where patients, patients' friends, and relatives park their cars when visiting their loved ones. This means they will have to seek alternative parking spaces when visiting the hospital.0The construction will occur just next to the main hospital administration block in an open field where patients, patients' friends, and relatives park their cars when visiting their loved ones. This means they will have to seek alternative parking spaces when visiting the hospital.
Competitive Advantage (how does product/service better position you compared to your rivals?
602932560325In Philadelphia City, Pennsylvania Hospital shall have the largest bed capacity for admitting and treat acute respiratory syndromes caused by Covid19.0In Philadelphia City, Pennsylvania Hospital shall have the largest bed capacity for admitting and treat acute respiratory syndromes caused by Covid19.
-142875384176Currently, there exists no specific regulation on how structures designed for containment o Covid19 should be built if in future such regulation is drafted and passed to become law. It could require us to re-engineer the already operationalized Covid19 ward. This would lead to disruption of services, loss of revenues, and additional costs.0Currently, there exists no specific regulation on how structures designed for containment o Covid19 should be built if in future such regulation is drafted and passed to become law. It could require us to re-