St. Anne’s Hospital Cost-Benefit Analysis

A cost-benefit analysis is an instance where a business decision is analyzed. The benefits that are associated with the business actions are summed up before the costs are subtracted from the related outcome regarding revenues. Therefore, cost-benefit analysis is a very crucial element in the selection of appropriate loss prevention and control measures or rather risk management. These cost benefits can either be financially applicable or somewhat subjective. Therefore, its primary purpose is to weigh the cost expected against the interests of other actions. In this case scenario, we are going to discuss the cost-benefit analysis on the risk management in St. Anne’s Hospital. We will as well provide the cost-benefit analysis conducted while valuing the costs and the risk assessments on the emergency processes on our health care. This has as well emerged as a daunting issue but will be addressed in this below. By so doing, the research will thus address the risks that affect the society and analyze their costs and benefits (Karlsson, 2016) . The presentations of the monetary costs that are incurred on the implementation of the risk management will be sited as well. 

The primary interest of assessing CBA’s is to ensure that all the appropriate costs have been included and to oppose where the expenses have excessively been displayed . As for this case, the monetary costs that were applied include; the start-up fees, the payroll expenses that would be incurred , training, gas expenses, traveling expenses, and the payrolls of the workers involved. These expenses acted as the main point of focus as included in the risk management plan. On the same note, non-monetary costs were as well included in the project . Such costs were mainly from other sources of forfeit sacrifice perceived by the consumers. These costs include time, search, convenience, and psychological costs. For instance, these costs were so essential as compared to the monetary prices. While identifying the monetary values, it was right first to figure out the risk posed as well as whether the stakeholders were likely to tolerate the situation. This was going to be of great help owing to the relaying of feedback while undertaking the project. According to this presentation, I opted to use this formula for calculating the monetary values. This is gained from; an Expected monetary value, which is equal to the probability, multiplied by the cost. And so, the expected result should be added to the cost of the project then subtracted from the project's profits. Therefore, the monetary value of the planned project was $100,000. This is the tot al amount prepared for the project. Having this monetary value at $5000 was reduced by an intern who was experiencing family issues; the money was entirely removed from the project. Notably, the amount was used to replace another intern on the project. As a result, the total amount scheduled for the project was reduced by the replacement value that was used . These are the values of the expected risks projected onto our project. 

Risks 

A decision was reached to exclude a 60% chance of any interns quitting along the project. Therefore, we chose to set aside $5000 on the risk that may occur while with the interns. This is well demonstrated bellow while calculating the expected cost of the risks that might arise . EMV=$5000*.5 (which is the period that the project will lust) =$25000. Therefore, $25000 is the total EMV expected loss which can be applied to the entire project value. Thus, it can be presented as $100000+$25000 where the full cost of the project is $125000. Therefore, this value represents the entire project cost. The non-monetary cost estimated on the remaining 40% incorporated all the cost of the project. As a result, the total cost values are incurred to adjust to the non-monetary benefits . After calculating their cost , they would be added to the initial costs. Therefore, all this calculation of the non-monetary can result in the total amount that will represent our cost of the project. Also, in regards to the anticipated cost , this refers to the costs that occur but are not listed on the expenses of the initial project. Although, this was not planned but were assumed that they could occur during the project time, and so there were also included aside but not on the main cost of the project. Such costs include things like purchasing orders, subcontracts, labor timecards, and many more. Notably, these costs were not included in the central budget, but they were accounted for just in case they occur in the course of the project. 

Through the project planning, we opted to include the monetary benefits that would be provided at the end of the project. These financial benefits are insurance benefits, illness benefits, interns training benefits and direct profits on the workers. These benefits will only be accounted if only the above mentioned can affect workers as well as other parties to the project (Karlsson, 2016) . However, these costs are included in the total cost as an emergency plan, and therefore they are set to alarm. And so, any inconvenience that may occur during the project will be accounted for as planned on the monetary benefits. These payments are instantly made when any problems arise or the workers and other participating members encounter a problem during the project. These costs at times don’t emerge during the project initiation, but it is always important to include them in the significant cost of the project. 

Notably, despite having the monetary benefits we have the non-monetary benefits. This non-monetary benefit tends to manifest in the project as research . And so, it was important to incorporate their costs in the main cost of the project before the departure of the plan just in case they occur so that they can be accounted for accordingly. The main examples of the non-monetary benefits included in our project were; the project reputation benefits , flex time benefits, time offs and mentoring programs. In most cases, these non-monetary benefits do not include cash, and therefore despite this fact, it is also included in the main cost of the project. And so, they contain material objects and other specified things to be offered as service. 

The monetary values are always specified and assigned to give workers the mutual benefits they deserve. And in our situation, these were applied as at the current values used. Interns were given time off and additional medical checkups which in total is $54000. And so, the amount allocated on this service was entailed in the monetary value given . The percentage rate of the medical allowances on which a family member of a worker or a worker is attended on at the hospital is done at a percentage of 10% than the average price. Therefore , the tot al amount, spent on the monetary benefits is calculated before the project to determine their total amount that has been paid . This will help in identifying the total amount that will be used indirectly (non-monetary benefits) to be presented in our cost analysis. Therefore, if a person, for instance, receives his annual salary with the benefits that will be achieved percentage that a person may acquire is 25the % of a compassion package. Therefore, if a person receives a yearly salary of $54000 plus the calculated benefits it results to $56000 thus carrying home a compensation package of $21000. 

St. Anne’s hospital availed a great opportunity to organize the risk management plan which entailed the carrying out of a cost-benefit analysis regarding the emergency workers, expected interns, and emergency transports for patients. Therefore, this being the emerging issues around the hospital organization, implements on the risk management was to be conducted to create the immediate deployment of the projects (Boardman, Greenberg, Vining & Weimer, 2017) . Notably, above are possible stated strategies and the cost benefits that may be applied to the plan formulated. In the cost analysis, we opted to include the total amount that will be required and even present the benefits costs that will be attained . We chose to make all the calculation due in time when the project will commence to avoid the fluctuation of the required prices on the market. And so, no implementation of the past projects nor approximation is to be made during the planning of the project in due time ; this would help in the correct allocation of funds into different departments. We opted not to implement the plan before time thus waiting until everything was ready then we can commence on the project. 

The system-based context is to provide emergency help to our patients. This is integrated into the cost and benefits analysis presented. Notably, this focuses on the risk that the assistance may incur in their services, and so, producing the best report will help in the benefit of the patients and other surplus provided. The hospital’s organization vision is to provide quality and quicker medication to patients; the mission is to provide quality medication to patients, then the motto is service to all. 

Conclusion 

The projects will mainly focus on this so as patients could feel the importance of the mission, vision, and motto on our organization . Quick emergency surplus can be very useful, as it will help much in the emergency occasions like accidents, and other things that may occur. People’s health is better at hand; through this, the project opts to be very important for the benefit of our patients thus providing quality treatment that may result in good recommendations from the clients we attend to . 

References 

Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2017). Cost-benefit analysis: concepts and practice . Cambridge University Press. 

Karlsson, C. (2016). Cost-Benefit Analysis in Healthcare. 

Quah, E., & Haldane, J. B. S. (2007). Cost-benefit analysis . Routledge. 

St Anne’s hospital cost benefit analysis