A Cost-Benefit Analysis of Accuracy Cyberknife Treatment Service Center for Vancouver, Washington

The purpose is to assess the likelihood of a particular solution option's achieving the benefits outlined in the Business Case. The Feasibility Study will also investigate whether the forecast costs are reasonable, the solution is achievable, the risks are acceptable and/or any likely issues are avoidable.

1. Please assess the economic benefits of acquiring the Vulcan Mold-Maker machine. What is the initial outlay? What are the benefits over time? What is an appropriate discount rate? Does the net present value(NPV) warrant the investment in the machine?

After twenty years the true allocation facility cost for the Dialysis Center should be zero, since the facility would be paid off and should have only minimal allocating facility costs such as opportunity costs and costs of using the center. If after the twenty years the building is not occupied it can be used from other medical centers or it could be rented out or sold. It is difficult to try to determine the opportunity costs for space occupied by all activities. The current system of facility allocation assigns equal opportunity cost across all activities and services and avoids the problem inherited in the new method.

The CanGo organization is lacking a Project Budget. The group is disorganized and unsure if the project can afford necessary equipment and resources required to complete the project. CanGo’s project team or the project manager needs to develop a project budget, including the goal of the project budget. The project manager will use this budget to help determine if the project is on track and the budget will be used by a number of personal as a guideline to fulfill project milestones. Aspects that need to be considered and included in the project budget are employee compensation, contract services such as hardware and software, equipment and supplies, and the budget should include overhead expenses. Overhead and indirect costs allow the project to absorb part of the administrative costs of the organizations daily operations. Many software options are available on the market today, such as

3. A cost-effective assessment was never done for this program. What should such an assessment have taken into account in terms of costs measured?

The common cost allocation methods which are used most often by health care organizations are the direct and the step- down methods. These methods are commonly used to help determine the costs of the services provided by the health care organizations. It is important to these agencies to know the costs of operation for each department. They can make smart business decisions on whether they can make investments, determine which department is making a profit or losing one, make improvements where necessary and have a sense of foundation for the future. There are other common cost allocation methods for patients-level costs, such as relative value units (RVU), ratio of cost to charges (RCC) and activity based costing (ABC) which gives us

Price: What is the cost (financial or nonfinancial) to the priority population to obtain the product and its benefits? In the budget I submitted there was a cost of $43,266 for the first year. We have sponsorships and a fundraiser but we will have to do some grant writing for the next three years while we institute the program. In anticipation of potential classroom interruptions and challenges while the program is being introduced we have recruited support from parents, mentors provided by our business partner and our sponsor Northern Mutual Insurance Corporation to provide tutoring and other supports as needed before and after school, once or twice a week. The district has increased its budget for paraprofessionals. Some of paraprofessionals within the district at a nearby school will be flexing their time between schools to provide additional in classroom support for the most challenging classrooms or students. When we successfully implement the program we hope to use the same paraprofessionals that are trained to begin the program in the other school. This program will cost everyone in the school extra effort to implement, in addition to any financial cost.

Analyses used to collect the data were the profitability, break-even and utilization/volume. A dashboard analysis was also used. To analyze the profit of the organization over the next five years, profitability analysis was used with considering inflation rates for each item. Break-even analysis was used to compare the amount of additional visits per day if the clinic operated as-is to operating with the expansion of the new marketing program. The break-even analysis was also used to recognize the volume required to cover the costs of the marketing program. The dashboard analysis was then used to summarize all analyses used.

The selection of a new or add-on program is contingent on budgetary requirements. How much money would have to be laid out for training of staff or does the knowledge already exist in the IT department. BAL is a small company with 400 employees. The budget that would be required to purchase a new software package could seriously outweigh the need.

The Whirlpool Europe case provides an opportunity to look at different ways to evaluate a major IT investment the company is considering. To undertake this analysis we have to make a few assumptions because the case does not have all the details needed to estimate benefits and investment cost. However, if you were in a company faced with this situation, these numbers would be available.

In line with our objective, we proposed two different models both resulted in reducing the total cost. Proposed scenarios are:

This method of calculating costs could be beneficial or not depending on the organization and its size. In a healthcare setting, any healthcare institution is seen as delivering quality care and therefore most decisions regarding choice of the institution come down to the pricing. In order to compete for patients, the healthcare institution must bring its price down to the absolute margin. This will over time affect the institution badly as it will leave the institution without funds to replace the capital equipment. This can eventually lead to closing down of the financially weaker

The cost of implementation of the options: It deals with the technicians and the reduction in time of implementation. This leads to better customer service and increases efficiency of the technicians. Also considering a customer base reduction of 5% (Exhibit 2), $1 million dollars will be a prudent investment.

There is a concern that the coordinator of the clinic has noted about the hospital Pacific Cataract and Laser Institute. The hospital is well known for the services that they offer to their patients, and they face a lot of competition from the hospitals that offer the same service. One of the Doctor’s, Dr. Everett, is concerned about the kind of pricing that their major competitor in the Laser surgery is offering. The Canada based hospital is advertising the surgery for the cost of $900 while the estimated cost of the surgery for the surgery ranges from $1750 to around $ 2000 (Lawrence & Morris, 2002). It comes as a surprise, as the advert is considered to be inappropriate by the PCLI doctors. The variable costs of

There are many benefits can be expected from this project such as it will make over the calculated commercial proficiencies. It will be proved as very important deal by investing in the project. The project can bring more money once it done. The project team is very efficient so they can surely get more benefits.