Business Case for a New Economic Opportunity 2 of 3

GRADING RUBRIC MUST BE FOLLOWED

Report on risk and mitigation and the costs and benefits of a proposed initiative.

Questions to Consider:

• What kinds of quantitative data can support proposals for change in a health care setting? What kinds of qualitative data can do so?
• What are the five different types of comparative economic analysis?
• What are some realistic and feasible recommended alternatives for health care issues and problems that currently impact your work? What would be the costs of pursuing those alternatives? What would be the benefits?
• When and how are the following methods for valuation best used?
  • Human capital.
  • Risk preference.
  • Contingent valuation.
  • Cost-benefit ratio.

Scenario

The senior management of your care setting has reviewed your Executive Brief: Proposal of a New Economic Opportunity and has decided that it has merit. As a result, you have been asked to take a more detailed look at the feasibility and cost-benefit considerations of implementing your proposed economic initiative over the next five years. The senior management is looking for a 3–5-page report that builds a business case for your economic initiative by analyzing ways to mitigate the risks associated with your original proposal and a completed cost-benefit analysis using the Cost-Benefit Analysis Template, linked in the Resources.

Directions

You have been asked to ensure that your report addresses the following. Note: The bullet points below correspond to grading criteria in the scoring guide. Be sure your work is, at minimum, addressing each of the bullets below. You may also want to read the scoring guide and the Guiding Questions: Business Case for a New Economic Opportunity document, linked in the Resources, to better understand the performance levels that relate to each grading criterion:

Part 1: Risk and Mitigation Analysis

Complete the following:

• Analyze the opportunities and risks relevant to your proposed economic initiative.
• Propose ethical and culturally sensitive solutions to address the risks associated with your economic initiative to ensure the future security of your care setting.

Part 2: Cost-Benefit Analysis

Complete the following:

• Analyze the costs and benefits of your proposed economic initiative over a five-year time horizon.
• Propose potential ways to keep costs under control while maximizing the benefits of your economic initiative and ensuring that it remains ethical and culturally equitable.

Address Generally Throughout Business Case

Complete the following:

• Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence you used to support your recommendations throughout your report.
• Communicate your business case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.
• Effectively support your report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Business Case Development

This document is designed to give you questions to consider and additional guidance to help you successfully complete the Business Case for a New Economic Opportunity assessment:

• Guiding Questions: Business Case for a New Economic Opportunity [DOC].

Cost-Benefit Analysis Development

This is a pre-formatted cost-benefit analysis template spreadsheet:

• Cost-Benefit Analysis Template [XLSX].

This resource discusses how to effectively write an accurate and thorough cost-benefit analysis requires some skill:

• Plowman, N. (2014). Writing a cost benefit analysis [Blog post]. Retrieved from http://www.brighthubpm.com/projectplanning/58181-w…

From the CDC’s series on economic evaluation, this resource discusses methods to assess programmatic costs:

• Centers for Disease Control and Prevention. (n.d.). Part IV: Benefit-cost analysis [PDF]. Retrieved from http://www.cdc.gov/dhdsp/programs/spha/economic_ev…

Quantifying Costs, Risks and Benefits of Healthcare Initiatives

This systematic review suggests that local and national public health interventions are highly cost-saving:

• Masters, R., Anwar, E., Collins, B., Cookson, R., & Capewell, S. (2017). Return on investment of public health interventions: A systematic review. Journal of Epidemiology & Community Health, 71(8), 82–834. Retrieved from http://jech.bmj.com/content/71/8/827

This resource discusses how economic evaluation helps to identify, measure, and compare activities with the necessary impact, scalability, and sustainability to optimize population health:

• Rabarison, K. M., Bish, C. L., Massoudi, M. S., & Giles, W. H. (2015). Economic evaluation enhances public health decision making. Frontiers in Public Health, 3, 164. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC44783…

This resource addresses the cost and benefits of medical interventions:

• Hauber, A. B., Fairchild, A. O., & Johnson, F. R. (2013). Quantifying benefit-risk preferences for medical interventions: An overview of a growing empirical literature. Applied Health Economics and Health Policy, 11(4), 319–329.

From the CDC’s series on economic evaluation, this resource discusses methods to assess programmatic costs:

• Centers for Disease Control and Prevention. (n.d.). Part III: Programmatic cost analysis [PDF]. Retrieved from http://www.cdc.gov/dhdsp/programs/spha/economic_ev…

From the CDC’s series on economic evaluation, this resource discusses cost-effectiveness analysis:

• Centers for Disease Control and Prevention. (n.d.). Part V: Cost-effectiveness analysis [PDF]. Retrieved from http://www.cdc.gov/dhdsp/programs/spha/economic_ev…