Assessment_2-6_context.pdf1 Assessment 2 Context M.docx

Assessment_2-6_context.pdf
1
Assessment 2 Context
MHA-FP5014 Assessment 2 Context
Regulations, Risk Management, Risk Sharing, and Risk
Financing
Leading in today's ever-changing health care industry requires
constant adjustment to
emerging laws, regulations, and industry standards.
Organizations must quickly and
effectively reposition to meet new, existing, and emerging laws.
Two examples of laws that
have driven a multitude of new and sometimes confusing
regulations are the Patient
Protection and Affordable Care Act of 2010 and the Healthcare
Insurance Portability and
Accountability Act of 1996.
The shift to electronic health records is another example of the
need to create new structures,
processes, and policies to meet legal and regulatory
requirements. Government surveying
bodies and industry accrediting bodies assess basic compliance
as well as best practices.
Effective leadership is not only necessary for the pursuit of
excellence, but also for
organizational survival.
Policy changes drive regulatory requirements and, consequently,

requirements for provider
organizations that depend upon Medicare and Medicaid as
reimbursement sources.
In The New England Journal of Medicine article, Inglehart
(2011) creates a context for the
health care environment relating to regulations, risk
management, and risk sharing:
One of the hottest issues debated within the administration was
whether ACOs should
bear financial risk in their quest to achieve savings. CMS
supported awarding a bonus
to an ACO when its stated goals were achieved but imposing no
penalty if it failed in
that regard for the first 2 years. This approach (used in
Medicare's Physician Group
Practice [PGP] demonstration) is designed for start-up ACOs,
while they gain
experience.
After White House intervention, a second, two-sided approach
to risk was added to the
rule, aimed at larger medical groups with stronger management
structures. Such
groups could choose to bear some of the financial risk, which
currently Medicare totally
assumes, in exchange for modestly higher bonuses if they
succeed.
CMS is uncertain how many large groups will opt for this at-
risk approach. A
companion program offering even greater risk sharing is
expected to be tested by
CMS's innovation center, and it may have more appeal to
integrated systems that

already accept capitation payments or other larger risk-sharing
arrangements.
Risk Management
Risk management has taken an increasingly important role in
organizational viability.
Conditions of participation for government-supported programs,
standards for provider status
required by insurance companies, and quality metrics requisite
for industry accreditation must
all be considered within the context of the organization's
directional strategy. It is wise to
revisit the vision, mission, and directional strategy of an
organization when considering how
to assess and manage risk, as well as how to become a top-
performing organization.
There is an ever-present tension between management of
medical errors and the
improvement of quality of care. The goal is to determine how to
assess risk, manage it, and
create a culture of patient safety.
2
Assessment 2 Context
MHA-FP5014 Assessment 2 Context
Risk Financing
Risk management entails prevention of adverse consequences
and minimization of negative
effects from accidental loss. Risk financing refers to reducing
the financial impact of risk, as
well as determining the best approach, from a financial

standpoint to handling adverse
situations.
Risk financing means looking at the operations of the
organization as well as determining
what financial preparation is needed to ensure a minimal
financial loss. Concepts such as
risk pooling, purchasing insurance, and taking risk reduction
measures are key to financial
preparation in risk management.
Risk financing may include all aspects of both legal protection
and compliance with
government regulations. It is important to note that many health
care organizations have legal
obligations to carry liability insurance under either their
accreditation or license type as a
means of financial loss protection. Some key concepts relating
to risk financing include:
1. Identifying and managing a risk financing issue.
2. Examining issues related to risk financing.
3. Analyzing existing organizational structures.
4. Determining the best risk financing options for a specific
organization.
5. Understanding various insurance types related to financial
risk reduction and asset
protection for a health care organization.
While health care leaders may expend great effort to avoid
liability, it is wise and realistic to
plan for human error. Inadequate risk financing exposes
organizations to losses that can
potentially threaten future viability.

References
Inglehart, J. K. (2011). The ACO regulations – Some answers,
more questions. New England
Journal of Medicine, 364(17), e35.
Regulations, Risk Management, and Risk SharingRisk
ManagementRisk FinancingReferencesInglehart, J. K. (2011).
The ACO regulations – Some answers, more questions. New
England Journal of Medicine, 364(17), e35.
Overview Assessment 2-6.docx
· Overview
Create a 2–3-page internal memo for a risk-management team.
Summarize a risk financing issue for a selected organization in
the memo.
Note: The assessments in this course build upon each other, so
you are strongly encouraged to complete them in a sequence.
Financial risk-management helps reduce the financial impact of
risk. It also determines the best approach for handling adverse
situations from a financial standpoint. Health care leaders must
have a solid understanding of the basics of regulation,
government and public risk sharing, and also the era of ACOs.
By successfully completing this assessment, you will
demonstrate your proficiency in the following course
competencies and assessment criteria:
· Competency 2: Apply a risk-management model or framework
to a specific risk-management priority.
· Identify key performance indicators and measures associated
with a specific risk-management issue.
· Discuss strategies used to identify risk financing issues in a
selected organization.
· Provide recommendations for risk financing options related to
an identified financial risk issue.
· Competency 4: Analyze applicable legal and ethical
institution-based values as they relate to quality assessment.

· Summarize the legal and ethical financial risk obligations of
an accountable care organization.
· Competency 5: Communicate in a manner that is scholarly,
professional, and consistent with expectations for professionals
in health care administration.
· Prepare a professional memo summarizing a risk financing
issue for a specified organization.
Context
There is a constant tension between the management of medical
errors and the improvement of the quality of care. You may be
asked to participate in risk-management and risk financing
activities in your role as a health care leader.
If a risk management team asked you to research and summarize
financial risks in your organization today, would you know the
following:
· What information to include?
· What format to use?
· How to present alternatives and make a recommendation?
· How to locate credible data from which the issue is to be
evaluated?
Read further in the Assessment 2 Context [PDF] document,
which contains important information on the following topics:
Attached
· Regulations.
· Risk Management.
· Risk Sharing.
· Risk Financing.
Questions to Consider
As you prepare to complete this assessment, you may want to
think about other related issues to deepen your understanding or
broaden your viewpoint. You are encouraged to consider the
questions below and discuss them with a fellow learner, a work
associate, an interested friend, or a member of your professional
community. Note that these questions are for your own
development and exploration and do not need to be completed
or submitted as a part of your assessment.

Imagine that a supervisor enters your work setting accompanied
by an unexpected visitor from CMS. Your supervisor introduces
you to the Medicare surveyor, who will be interviewing you.
· What is the risk-management process in your organization?
· What criteria would you use to determine how well your
organization is performing as an ACO?
· What data or resources would be helpful to you?
· How would you explain the concepts of risk management and
risking financing activities to your subordinates?
· How would you explain a risk financing continuum to your
subordinates?
Resources
Suggested Resources
Accountable Care Organizations-Managing Financial Risk
This article discusses how implementers envision integration
and what it means to manage the many social identities that
ACOs bring together.
· Kreindler, S. A., Larson, B. K., Wu, F. M., Carluzzo, K. L.,
Gbemudo, J. N., Struthers, A., . . . Fisher, E. S.
(2012). Interpretations of integration in early accountable care
organizations.Milbank Quarterly, 90(3), 457–483.
This article proposes strategies for ACOs to engage with the
internal and external customers to develop new products that
will provide a competitive advantage by decreasing waste,
promoting knowledge, and targeting customer value.
· Macfarlane, M. A. (2014). Sustainable competitive advantage
for accountable care organizations.Journal of Healthcare
Management, 59(4), 263–271.
This article provides a framework for assessing performance,
targeting technical assistance, and diagnosing potential antitrust
violations.
· Shortell, S. M., Wu, F. M., Lewis, V. A., Colla, C. H., &
Fisher, E. S. (2014). A taxonomy of accountable care
organizations for policy and practice.Health Services Research,
49(6), 1883–1899.
ACO Ethical and Legal Obligations

This article provides an ethical framework for physician
decisions and action within the ACOs.
· Graber, A. D., Bhandary, A., & Rizzo, M. (2016). Ethical
practice under accountable care.HEC Forum, 28(2), 115–128.
The following articles examine some of the ethical concerns
that ACOs confront.
· DeCamp, M. (2013). Ethics in accountable care
organizations. Virtual Mentor, 15 (2), 156-161.
· DeCamp, M., Farber, N. J., Torke, A. M., George, M., Berger,
Z., Keirns, C. C., & Kaldjian, L. C. (2014). Ethical challenges
for accountable care organizations: A structured review.Journal
of General Internal Medicine, 29(10), 1392-1399.
These textbook readings address patient safety, security and the
legal risks involved with it.
· Kavaler, F., & Alexander, R. S. (2014). Risk management in
health care institutions: Limiting liability and enhancing
care (3rd ed). Burlington, MA: Jones and Bartlett. Available
from the bookstore.
· Chapter 7, "Assuring Safety and Security in Healthcare
Institutions," read the "Information Systems" section, pages
169–172.
· Youngberg, B. J. (2011). Principles of risk management and
patient safety. Sudbury, MA: Jones and Bartlett. Available from
the bookstore.
· Chapter 7, "Using 'Never Events' to Reduce Risk and Advance
Patient Safety," pages 69–80.
· Chapter 8, "The Patient Safety and Quality Improvement Act:
Tension Between Improving Quality of Care and
Acknowledging Responsibility for Error," pages 81–90.
· Chapter 9, "The Role of Governance in Hospital Risk
Management and Patient Safety," pages 91–102.
· Chapter 12, "Developing a Request for Proposal and Working
with Insurance Providers," pages 135–159.
· Chapter 13, "The Importance of Developing a Medical
Liability Cost-Allocation System," pages 159–169.
Additional Resources for Further Exploration

You may use the following optional resources to further explore
topics related to competencies.
from thebookstore.
· Chapter 14, "Telemedicine," 409–421.
the bookstore.
· Chapter 10, "The Culture of Medicine, Legal Opportunism,
and Patient Safety," pages 103–112.
Risk-Management Professional Organizations
· The Risk Management Association. (n.d.). Retrieved
from https://www.rmahq.org/Default.aspx
· American Hospital Association. (n.d.). American Society for
Health Care Risk Management. Retrieved
from http://www.ashrm.org/
Assessment Instructions
Note: This assessment must be completed before starting
Assessment 3.
Preparation
Imagine yourself in the role of a risk manager. Select a topic
related to risk financing and identify a risk financing issue. This
issue may be from a selected organization or from your
workplace. As an example, you might select the issue of
financing potential malpractice suits at a medical clinic. Refer
to the Suggested Resources to ensure that you have a solid
understanding of the financial dynamics related to this type of
issue.
Instructions
Memo – Risk Financing Issue
Create a 2– 3-page internal memo. Follow the steps below and
include them in the memo:
· Concisely describe the issue and the organization.
· Summarize the legal and ethical financial risk obligations of

an ACO.
· Describe how you would identify and manage risk financing
issues within this organization. Support your choice of
strategies with relevant resources.
· Recommend two or three of the best options for risk financing
for this issue, as it relates to the organization in question.
· Include at least three APA-formatted in-text citations and
accompanying congruent APA-formatted references. Your
sources can be a course textbook, assigned reading, or any other
scholarly source.
Additional Requirements
· Written communication: Written communication should be
free from errors that detract from the overall message.
· Memo format: Format your memo so that it reflects the
professional standards of your organization or accepted
standards of a professional memo in the industry.
· Length of paper: 2–3 double-spaced pages for the written
portion of the assessment.
· Number of resources: A minimum of three resources.
· Font and font size: Arial, 10-point.
·
Overview
Create a 2
–
3
-
page internal memo for a risk
-
management team. Summarize
a risk
financing issue for a selected organization in the memo.

Note
: The assessments in this course build upon each other, so you
are strongly
encouraged to complete them in a sequence.
Financial risk
-
management helps reduce the financial impact of risk. It also
determines
the best approach
for handling adverse situations from a financial standpoint.
Health care
leaders must have a solid understanding of the basics of re
gulation, government and
public risk sharing, and also the era of ACOs.
demonstrate your proficiency in the
following course competencies and assessment criteria:
o
Competency 2
: Apply a risk
-
management mo
del or framework to a specific risk
-
management priority.
§
Identify key performance indicators and measures associated
with a specific

risk
-
management issue.
§
Discuss strategies used to identify risk financing issues in a
selected
organization.
§
Provide recom
mendations for risk financing options related to an identified
financial risk issue.
o
Competency 4:
Analyze applicable legal and ethical institution
-
based values as
they relate to quality assessment.
§
Summarize the legal and ethical financial risk obligatio
ns of an accountable
care organization.
o
Competency 5
: Communicate in a manner that is scholarly, professional, and
consistent with expectations for professionals in health care

administration.
§
Prepare a professional memo summarizing a risk financing issue
for a
specified organization.
Context
There is a constant
tension between the management of medical errors and the
improvement of the quality of care. You may be asked to
participate in risk
-
management
and risk financing activities in your role as a
health care leader.
financial risks in
your
organization today, would you know the following:
o
What information to include?
o
What format to use?
o

How to present alternatives and make a recommendation?
o
How to locate credible data from which the issue is to be
evaluated?
Create a 2–3-page internal memo for a risk-management team.
Summarize a risk
financing issue for a selected organization in the memo.
you are strongly
Financial risk-management helps reduce the financial impact of
risk. It also determines
the best approach for handling adverse situations from a
financial standpoint. Health care
leaders must have a solid understanding of the basics of
regulation, government and
public risk sharing, and also the era of ACOs.
o Competency 2: Apply a risk-management model or framework
to a specific risk-
with a specific
risk-management issue.
scuss strategies used to identify risk financing issues in a
selected
organization.
an identified

financial risk issue.
o Competency 4: Analyze applicable legal and ethical
institution-based values as
they relate to quality assessment.
an accountable
care organization.
o Competency 5: Communicate in a manner that is scholarly,
professional, and
administration.
issue for a
specified organization.
Context
There is a constant tension between the management of medical
errors and the
improvement of the quality of care. You may be asked to
participate in risk-management
and risk financing activities in your role as a health care leader.
financial risks in your
organization today, would you know the following:
o What information to include?
o What format to use?
o How to present alternatives and make a recommendation?
o How to locate credible data from which the issue is to be
evaluated?
Overview Assessment 3-6.docx
Overview
Create a 5–6-page cost benefit analysis that supports a risk
financing recommendation for a selected organization.
you are strongly encouraged to complete them in a sequence.

In your current and future role as a health care leader, you can
expect to conduct a cost-benefit analysis (CBA) to determine
whether the positive benefits of a proposed recommendation
outweigh the negative costs.
demonstrate your proficiency in the following course
competencies and assessment criteria:
· Competency 1: Conduct an environmental assessment to
identify quality- and risk-management priorities for a health
care organization.
· Specify the focus and stakeholders for a cost-benefit analysis.
· Develop a value proposition for change management that
incorporates quality- and risk-management concepts.
· Describe strategies to influence and impact the needed
changes for quality improvement.
· Competency 2: Apply a risk-management model or framework
to a specific risk-management priority.
· Conduct a cost-benefit analysis for a risk-management
intervention.
· Competency 3: Analyze the process and outcomes of a care
quality- or risk-management issue.
· Identify relevant internal and external benchmarks, using a
systems-based perspective.
· Competency 5: Communicate in a manner that is scholarly,
professional, and consistent with expectations for professionals
in health care administration.
· Use correct grammar, punctuation, and mechanics as expected
of a graduate learner.
Context
expect to conduct a CBA. You may be asked to offer three
alternatives and to make a recommendation.
Plowman relates that "a cost benefit analysis is used to evaluate
the total anticipated cost of a project compared to the total
expected benefits in order to determine whether the proposed
implementation is worthwhile for a company or project team."

Plowman also identified the three parts of a CBA to be the
following:
· Identification of potential costs.
· Recording of all anticipated benefits.
· Examination of the differences to determine if positive
benefits outweigh negative costs.
A pre-formatted Excel spreadsheet that can be used as a
template for CBAs is a good tool to have in your personal
toolbox. Inputting data is simply the first step. As you fill out
templates, always consider the numbers within the context of an
organizational mission, strategic direction, patient safety, risk-
management issues, regulatory requirements, patient and
stakeholder satisfaction, and also the dynamics within the health
care industry.
Reference
Plowman, N. (2014). Writing a cost-benefit analysis. Retrieved
from http://www.brighthub.com/office/project-
management/articles/58181.aspx
Questions to Consider
As you prepare to complete this assessment, you may want to
think about other related issues to deepen your understanding or
broaden your viewpoint. You are encouraged to consider the
questions below and discuss them with a fellow learner, a work
associate, an interested friend, or a member of your professional
community. Note that these questions are for your own
development and exploration and do not need to be completed
or submitted as a part of your assessment.
· What steps do you need to take in order to align a CBA with
an organization's mission and strategy?
· If you were to offer three alternative recommendations after a
CBA, what types of elements would you consider to
differentiate them from one another?
· How would you substantiate a recommendation for reducing
financial risks in a health care setting when the quality of care
is involved?
· What are the three parts of a CBA?

Required Resources
The following resources are required to complete this
assessment.
· Cost-Benefit Analysis Template [XLSX]. Attached
Suggested Resources
The resources provided here are optional and support the
assessment.
· Plowman, N. (2014). Writing a cost-benefit
analysis. Retrieved from
http://www.brighthub.com/office/project-
This article discusses how to value risk reductions in the
context of benefit-cost analysis.
· Robinson, L. A., & Hammitt, J. K. (2013). Skills of the trade:
Valuing health risk reductions in benefit-cost analysis.Journal
of Benefit-Cost Analysis, 4(1), 107–130.
This article discusses a cost analysis approach in medical
education.
· Walsh, K., Levin, H., Jaye, P., & Gazzard, J. (2013). Cost
analyses approaches in medical education: There are no simple
solutions.Medical Education, 47(10), 962–968.
This article describes the cost-benefit methodology in terms of
criminal justice policy.
· Manski, C. F. (2015). Narrow or broad cost–benefit analysis
[PDF]?Criminology & Public Policy, 14(4), 647–651.
Additional Resources for Further Exploration
You may use the following optional resources to further explore
topics related to competencies.
Risk-Management Textbooks
from the bookstore.
the bookstore.

Risk-Management Professional Organizations
· The Risk Management Association. (n.d.). Retrieved
from https://www.rmahq.org/Default.aspx
· American Hospital Association. (n.d.). American Society for
Health Care Risk Management. Retrieved
from http://www.ashrm.org/
· Assessment Instructions
Note: This assessment should be completed third.
Preparation
Scenario
Suppose an issue has emerged in your organization that presents
significant risks to the stakeholders involved. Your supervisor
has asked you to conduct a CBA, make a recommendation, and
present it to the board of directors. You are expected to
consider the numbers within the context of the organizational
mission, strategic direction, patient safety, risk-management
issues, regulatory requirements, patient and stakeholder
satisfaction, and the dynamics within the health care industry.
Select a relevant issue within your workplace (or one from the
Suggested Resources) for which a CBA may be conducted. The
CBA should include one of the following course-related topics:
· Quality.
· Patient safety.
· Risk management.
· Regulatory standards.
· Compliance.
· Patient and stakeholder satisfaction.
Instructions
Step One: Identify Costs
Apply the process from Writing a Cost-Benefit Analysis article
(from the Required Resources) to identify costs:
2. Make a list of all monetary costs that will be incurred upon
implementation and throughout the life of the project. These
include start-up fees, licenses, production materials, payroll
expenses, user acceptance processes, training, and travel

expenses, among others.
2. Make a list of all non-monetary costs that are likely to be
absorbed. These include time, low production of other tasks,
imperfect processes, potential risks, market saturation or
penetration uncertainties, and influences on one's reputation.
2. Assign monetary values to the costs identified in steps one
and two. To ensure equality across time, monetary values are
stated in present value terms. If realistic cost values cannot be
readily evaluated, consult with market trends and industry
surveys for comparable implementation costs in similar
businesses.
2. Add all anticipated costs together to get a total costs
value (Plowman, 2014).
Step Two: Identify Benefits
Continuing with the CBA, proceed with the identification and
quantification of benefits, per Writing a Cost-Benefit
Analysis article.
2. Make a list of all monetary benefits that will be experienced
upon implementation and thereafter. These benefits include
direct profits from products or services, increased contributions
from investors, decreased production costs due to improved and
standardized processes, and increased production capabilities,
among others.
2. Make a list of all non-monetary benefits that one is likely to
experience. These include decreased production times, increased
reliability and durability, greater customer base, greater market
saturation, greater customer satisfaction, and improved company
or project reputation, among others.
2. Assign monetary values to the benefits identified in steps one
and two. Be sure to state these monetary values in present value
terms as well.
2. Add all anticipated benefits together to get a total benefits
value (Plowman, 2014).
Cost-Benefit Analysis
Enter the cost and benefit data you developed for the CBA in
your preparation steps into the Cost-Benefit Analysis Template,

linked in the Required Resources.
Then, write an analysis in which you do the following:
. Describe the organizational, program, or departmental issue
for which you have created the CBA.
. Evaluate the cost versus benefit according to the general
guidelines outlined by Plowman's 2014 article, which you read
in the preparation for this assessment.
. Make a recommendation as to whether the benefits are
sufficient to outweigh the costs of the proceeding.
. Describe the systems-based context for your recommendations,
integrating the CBA within the organization as a whole.
. Describe how the issue relates to the organization's vision,
mission, and strategic direction.
. Provide a rationale that explains how your recommendations
are appropriate for your organization's capacity and strategy.
Your analysis should use proper APA style and formatting and
include the following sections. Each section, except the title
page, should include the appropriate section heading.
2. Title page: Use APA formatting and include the following:
21. Assessment number (Assessment 3).
21. Your name.
21. The date.
21. The course number (MHA-FP5014).
21. Your instructor's name.
2. Abstract: Include a one-paragraph summary of analysis
content. This is not an introduction to the topic, but a summary
of the entire analysis. Make sure to double-space.
2. Issue description.
2. CBA evaluation.
2. CBA recommendations.
2. Context for recommendations.
2. Relationship to vision, mission, and strategy.
2. Rationale.
2. Conclusion.
2. References.
2. Appendix: Attach your completed Cost-Benefit Analysis

Template.
Additional Requirements
. Written communication: Written communication should be free
from errors that detract from the overall message.
. Length of paper: 5–6 typed, double-spaced pages.
. Font and font size: Arial, 10-point.
. Appendix: Include your Cost-Benefit Analysis Template as an
appendix to your analysis.
Reference
Plowman, N. (2014). Writing a cost-benefit analysis. Retrieved
from http://www.brighthub.com/office/project-
Overview
Create a 5
–
6
-
page cost benefit analysis that supports a risk financing
recommendation for
a selected organization.
Note
: The assessments in this course build upon each other, so you
are strongly
expect to conduct a cost
-
benefit analysis (CBA) to determine whether the positive
benefits of a proposed
recommendation outweigh the negative costs.

By successfully completi
ng this assessment, you will demonstrate your proficiency in the
o
Competency 1:
Conduct an environmental assessment to identify quality
-
and risk
-
management priorities for a health care organization.
§
S
pecify the focus and stakeholders for a cost
-
benefit analysis.
§
Develop a value proposition for change management that
incorporates
quality
-
and risk
-
management concepts.
§

Describe strategies to influence and impact the needed changes
for quality
improvement
.
o
Competency 2:
Apply a risk
-
management model or framework to a specific risk
-
§
Conduct a cost
-
benefit analysis for a risk
-
management intervention.
o
Competency 3:
Analyze the process and outcomes of
a care quality
-
or risk
-
management iss
ue.

§
Identify relevant internal and external benchmarks, using a
systems
-
based
perspective.
o
Competency 5:
Communicate in a manner that is scholarly, professional, and
administration.
§
Use correct grammar, punctuation, and mechanics as expected
of a graduate
learner.
Context
In your current and future role
as a health care leader, you can expect to conduct a CBA.
You may be asked to offer three alternatives and to make a
recommendation.
Plowman
relates that "a cost benefit analysis is used to evaluate the total
anticipated cost
of a project compared to the total expected benefits in order to

determine whether the
proposed implementation is worthwhile for a company or
project team." Plowma
n also
identified the three parts of a CBA to be the following:
o
Identification of potential costs.
o
Recording of all anticipated benefits.
Overview
Create a 5–6-page cost benefit analysis that supports a risk
financing recommendation for
a selected organization.
you are strongly
expect to conduct a cost-
benefit analysis (CBA) to determine whether the positive
benefits of a proposed
recommendation outweigh the negative costs.
o Competency 1: Conduct an environmental assessment to
identify quality- and risk-
management priorities for a health care organization.
-benefit analysis.
incorporates
quality- and risk-management concepts.

changes for quality
improvement.
o Competency 2: Apply a risk-management model or framework
to a specific risk-
-benefit analysis for a risk-management
intervention.
o Competency 3: Analyze the process and outcomes of a care
quality- or risk-
management issue.
systems-based
perspective.
o Competency 5: Communicate in a manner that is scholarly,
professional, and
administration.
of a graduate
learner.
Context
expect to conduct a CBA.
You may be asked to offer three alternatives and to make a
recommendation.
Plowman relates that "a cost benefit analysis is used to evaluate
the total anticipated cost
of a project compared to the total expected benefits in order to
determine whether the
proposed implementation is worthwhile for a company or
project team." Plowman also
identified the three parts of a CBA to be the following:
o Identification of potential costs.
o Recording of all anticipated benefits.

Assessment 3-6 cost_benefit_analysis_template.xlsx
CBA TemplateCOST BENEFIT ANALYSIS TEMPLATEStep 1:
Enter cost amounts as future value (FV) expectations. The
future value will be automatically converted to present value
(PV). Step 2: Enter benefit amounts as FV expectations. The FV
will automatically be converted to PV. Step 3: Subtract the total
PV benefits from the total PV costs to get the net
benefit.CostsCurrent Year (CY)CY +1CY +2CY +3CY +4CY
+5Total CostsTotal Costs (Future Value)$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0Total Costs (Present Value)$ - 0$ - 0$ - 0$ -
0$ - 0$ - 0$ - 0blank rowBenefitsCurrent Year (CY)CY
+1CY +2CY +3CY +4CY +5Total BenefitsTotal Benefits
(Future Value)$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0Total
Benefits (Present Value)$ - 0$ - 0$ - 0$ - 0$ - 0$ - 0$
- 0blank rowPresent Value Discout Rate2%PV
Denominator1.001.021.041.061.081.10Net Benefit$ - 0End of
worksheet

Assessment_2-6_context.pdf1 Assessment 2 Context M.docx

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Assessment_2-6_context.pdf1 Assessment 2 Context M.docx