Overview In this assessment, you will report on risk and mitigat.docx

Overview
In this assessment, you will report on risk and mitigation, and
the costs and benefits of a proposed initiative.
As a master's-level health care practitioner, you are expected to
consider a number of factors when analyzing the feasibility of a
new initiative. For example, you need to keep in mind the
various types of risk (such as patient safety, physical plant,
financial, or reputation), as well as the present and future value
of the service line or economic opportunity into which you are
investing resources. You also must balance the competing
considerations of your ethical and moral responsibility to
provide quality care to patients and populations, while also
protecting your care setting's assets and economic viability in
the near and long terms.
Note: Complete the assessments in this course in the order in
which they are presented.
By successfully completing this assessment, you will
demonstrate your proficiency in the following course
competencies and assessment criteria:
· Competency 1: Analyze the effects of financial and economic
factors (such as cost-benefit, supply and demand, return on
investment, and risks) in a health care system on patient care,
services offered, and organizational structures and operation.
1. Analyze the opportunities and risks relevant to a proposed
economic initiative.
1. Analyze the costs and benefits of a proposed economic
initiative over a five-year time horizon.
. Competency 2: Develop ethical and culturally equitable
solutions to economic problems within a health care
organization in an effort to improve the quality of care and
services offered.
2. Propose potential ways to keep costs under control while
maximizing the benefits of an economic initiative and ensuring
that it remains ethical and culturally equitable.

. Competency 3: Justify the qualitative and quantitative
information used to guide economic decision making to
stakeholders and colleagues.
3. Justify the relevance and value of the quantitative and
qualitative economic, financial, and scholarly evidence used to
support recommendations throughout a report.
. Competency 4: Develop ethical and culturally equitable
economic strategies to address dynamic environmental forces
and ensure the future security of an organization's resources and
its ability to provide quality care.
4. Propose ethical and culturally sensitive solutions to address
the risks associated with an economic initiative to ensure the
future security of a care setting.
. Competency 5: Apply various communication methods in order
to clearly, effectively, and efficiently relate information to
stakeholders and colleagues related to economic data, findings,
and strategies.
5. Communicate a business case in a logically structured and
concise manner, writing content clearly with correct use of
grammar, punctuation, and spelling.
5. Effectively support a report with relevant economic data and
scholarly sources, correctly formatting citations and references
using current APA style.
Context
To support your work on this assessment, take time to read the
contents of Assessment 2 Context [DOC]. Attached
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 part of your assessment.

. 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?
9. Human capital.
9. Risk preference.
9. Contingent valuation.
9. Cost-benefit ratio.
Suggested Resources
The resources provided here are optional. You may use other
resources of your choice to prepare for this assessment;
however, you will need to ensure that they are appropriate,
credible, and valid.
. Guiding Questions: Business Case for a New Economic
Opportunity [DOC]. Attached
. Cost-Benefit Analysis Template [XLSX]. Attached
Capella Multimedia
This interactive exercise provides an overview of the health
insurance market:
. Transcript attached .
Library Resources
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.
Internet Resources
These resources provide data that will help you complete your

assessment:
. Centers for Disease Control and Prevention. (n.d.). Part III:
Programmatic cost analysis [PDF]. Retrieved from
www.cdc.gov/dhdsp/programs/spha/economic_evaluation/docs/p
odcast_iii.pdf
. Centers for Disease Control and Prevention. (n.d.). Part IV:
Benefit-cost analysis [PDF]. Retrieved from
http://www.cdc.gov/dhdsp/programs/spha/economic_evaluation/
docs/podcast_iv.pdf
. Centers for Disease Control and Prevention. (n.d.). Part V:
Cost-effectiveness analysis [PDF]. Retrieved from
http://www.cdc.gov/dhdsp/programs/spha/economic_evaluation/
docs/podcast_v.pdf
This resource provides valuable insight into writing a cost
benefit analysis:
. Plowman, N. (2014). Writing a cost benefit analysis [Blog
post]. Retrieved from http://www.brighthubpm.com/project-
planning/58181-writing-a-cost-benefit-analysis/
· Assessment Instructions
In this assessment, you will conduct a risk and mitigation
analysis and cost-benefit analysis and report on your findings.
Scenario
The senior management of your care setting has reviewed your
Executive Brief: Proposal of a New Economic Opportunity and
has decided that is 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
included 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 to better understand the
performance levels that relate to each grading criterion:
Part 1: Risk and Mitigation Analysis
. Analyze the opportunities and risks relevant to your proposed
. 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
. 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
. 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.
Additional Requirements
. Length: 3–5 double-spaced, typed pages. Your paper should be
succinct yet substantive.
8. Be sure to include a title page and reference list.
8. Your completed Cost-Benefit Analysis Template should be
included as an appendix within your final business case
submission.
. APA formatting: Resources and citations are formatted
according to current APA style.

. Resources: Cite a minimum of 4–5 authoritative and scholarly
resources. Be sure to include specific economic data and
support as part of your cited resources
Overview
the costs and
benefits of a proposed initiative.
As a master's
-
level health care practitioner, you are expected to consider a
number
of factors when analyzing the feasibility of a
new initiative. For example, you
need to keep in mind the various types of risk (such as patient
safety, physical
plant, financial, or reputation), as well as the present and future
value of the
service line or economic opportunity into which you are inves
ting resources. You
also must balance the competing considerations of your ethical
and moral
responsibility to provide quality care to patients and
populations, while also
the near and long
te
rms.
Note
: Complete the assessments in this course in the order in which
they are

presented.
demonstrate your
proficiency in the following course competencies and
assessment criteria:
·
Competency 1
: Analy
ze the effects of financial and economic factors (such as
cost
-
benefit, supply and demand, return on investment, and risks) in
a health care
system on patient care, services offered, and organizational
structures and
operation.
o
Analyze the opportunities a
nd risks relevant to a proposed economic initiative.
o
Analyze the costs and benefits of a proposed economic initiative
over a five
-
year
time horizon.
·
Competency 2

: Develop ethical and culturally equitable solutions to economic
problems within a health care
organization in an effort to improve the quality of
care and services offered.
o
Propose potential ways to keep costs under control while
maximizing the benefits
of an economic initiative and ensuring that it remains ethical
and culturally
equitable.
·
Compet
ency 3
: Justify the qualitative and quantitative information used to
guide
economic decision making to stakeholders and colleagues.
o
Justify the relevance and value of the quantitative and
qualitative economic,
financial, and scholarly evidence used to sup
port recommendations throughout a
report.
·
Competency 4
: Develop ethical and culturally equitable economic strategies to
address dynamic environmental forces and ensure the future
security of an
organization's resources and its ability to provide quality care.

o
Propose ethical and culturally sensitive solution
s to address the risks associated
with an economic initiative to ensure the future security of a
care setting.
Overview
the costs and
benefits of a proposed initiative.
As a master's-level health care practitioner, you are expected to
consider a number
of factors when analyzing the feasibility of a new initiative. For
example, you
need to keep in mind the various types of risk (such as patient
safety, physical
plant, financial, or reputation), as well as the present and future
value of the
service line or economic opportunity into which you are
investing resources. You
also must balance the competing considerations of your ethical
and moral
responsibility to provide quality care to patients and
populations, while also
the near and long
terms.
Note: Complete the assessments in this course in the order in
which they are
presented.
demonstrate your
proficiency in the following course competencies and
assessment criteria:

factors (such as
cost-benefit, supply and demand, return on investment, and
risks) in a health care
system on patient care, services offered, and organizational
structures and
operation.
o Analyze the opportunities and risks relevant to a proposed
o Analyze the costs and benefits of a proposed economic
initiative over a five-year
time horizon.
solutions to economic
problems within a health care organization in an effort to
improve the quality of
care and services offered.
o Propose potential ways to keep costs under control while
of an economic initiative and ensuring that it remains ethical
and culturally
equitable.
information used to guide
economic decision making to stakeholders and colleagues.
o Justify the relevance and value of the quantitative and
financial, and scholarly evidence used to support
recommendations throughout a
report.
economic strategies to
address dynamic environmental forces and ensure the future
security of an
organization's resources and its ability to provide quality care.
o Propose ethical and culturally sensitive solutions to address

the risks associated
with an economic initiative to ensure the future security of a
care setting.
THE MARKET FOR HEALTH INSURANCE
Production Function
Identifies how various inputs can be combined and transformed
into a final output.
Diseconomies of Scale
An increase in all inputs results in a less than proportionate
increase in output. A state which occurs
when long-run average costs increase to the point where
inefficiency results.
Increasing Returns
Occurs when an increase in all inputs results in a more than
proportionate increase in output.
Cost Function
A relationship that measures the total costs of a particular
provision of services.
Community Rating
Applies when each member of an insurance pool pays the same
premium per person or per family for

the same coverage.
Adverse Selection
Exists when people with high risk health-related characteristics
increase the total cost of health insurance
provided.
Experience Rating
Occurs when insurance companies base premiums on past levels
of payouts, which is often done for car
or homeowners insurance.
Private Insurance
Usually supplied by providers for profit, although it can also be
offered by public bodies or by nonprofit
organizations.
Moral Hazard
Refers to the risk of an individual’s behavior being influenced
by potential financial gain.
Managed Care Organizations
Groups providing coordination and delivery of services to
improve quality and outcomes while containing
costs. These types of plans typically involve contractual
arrangements with providers, and enrollment on

behalf of consumers.
Social Insurance
A plan in which taxpayers (either individual or corporate) fund
health care services which are distributed
by the government.
CREDITS Subject Matter Expert:
Interactive Design:
Darleen Barnard
Tara Schiller
©1998-2017 HealthWyse LLC 1 of 2 The Market for Health
Insurance...
Instructional Designer:
Project Manager:
Sherryl Stern
Julie Greunke
L i c e n s e d u n d e r a C r e a t i v e C o m m o n s A t t r i
b u t i o n 3 . 0 L i c e n s e .
©1998-2017 HealthWyse LLC 2 of 2 The Market for Health
Insurance...

The Market for Health Insurance
Production Function
increase in output. A state which occurs when long-run average
costs increase to the point where inefficiency results.
Increasing Returns
Cost Function
Community Rating
premium per person or per family for the same coverage.
Adverse Selection
increase the total cost of health insurance provided.
Experience Rating
of payouts, which is often done for car or homeowners
insurance.
Private Insurance
offered by public bodies or by nonprofit organizations.
Moral Hazard
improve quality and outcomes while containing costs. These
types of plans typically involve contractual arrangements with
providers, and enrollment on behalf of consumers.

Social Insurance
health care services which are distributed by the government.
Production Function
increase in output. A state which occurs when
long
-
run average costs increase to the poi
nt where inefficiency results.
Increasing Returns
Cost Function
Community Rat
ing
premium per person or per family for the

same coverage.
Adverse Selection
Exists when people with high risk health
-
related characteristics increase the total cost of health insurance
provided.
Experience Rating
of payouts, which is often done for car or
homeowners insurance.
Private Insurance
organizations.
Moral Hazard
G
roups providing coordination and delivery of services to
Social Insurance

A plan in
which taxpayers (either individual or corporate) fund health
care services which are distributed
by the government.
Production Function
increase in output. A state which occurs when
long-run average costs increase to the point where inefficiency
results.
Increasing Returns
Cost Function
Community Rating
premium per person or per family for the
same coverage.
Adverse Selection
increase the total cost of health insurance
provided.
Experience Rating
of payouts, which is often done for car or
homeowners insurance.
Private Insurance

organizations.
Moral Hazard
Social Insurance
health care services which are distributed
by the government.
Business Case for a New Economic Opportunity Scoring Guide
CRITERIA NON-PERFORMANCE BASIC PROFICIENT
DISTINGUISHED
Analyze the
opportunities and
risks relevant to a
proposed economic
initiative.
Does not identify
opportunities and
risks relevant to a
proposed economic
initiative.

Fails to analyze
some relevant
opportunities or risks,
or fails to compare
opportunities to risks.
Analyzes the
opportunities and
risks relevant to a
proposed economic
initiative.
Analyzes the
opportunities and risks
relevant to a proposed
economic initiative, and
impartially considers
conflicting data and
other perspectives.
Propose ethical and
culturally sensitive
solutions to address
with an economic
initiative to ensure
the future security of
a care setting.
Does not propose
with an economic
initiative to ensure the
future security of a

care setting.
Proposed solutions
are not ethical, not
culturally sensitive,
not equitable, or fail
to sufficiently mitigate
identified risks.
Proposes ethical and
with an economic
initiative to ensure
the future security of
a care setting.
Proposes ethical and
solutions to address the
risks associated with an
economic initiative to
ensure the future
security of a care
setting, and identifies
related assumptions.
Analyze the costs
and benefits of a
proposed economic
initiative over a five-
year time horizon.
Does not analyze the
costs and benefits of

a proposed economic
year time horizon.
Attempts analysis,
but misinterprets or
fails to complete the
template, or fails to
create
recommendations
related to the cost-
benefit analysis.
Analyzes the costs
and benefits of a
proposed economic
year time horizon.
Analyzes the costs and
benefits of a proposed
economic initiative over
a five-year time horizon;
identifies knowledge
gaps, unknowns,
missing information,
unanswered questions,
or areas of uncertainty
(where further
information could
improve the analysis).
Propose potential
ways to keep costs
under control while
maximizing the

benefits of an
economic initiative
and ensuring that it
remains ethical and
culturally equitable.
Does not propose
potential ways to
keep costs under
control while
maximizing the
benefits of an
economic initiative
remains ethical and
Cost control proposal
is impractical or fails
to consider relevant
effects on benefits,
ethics, or equity.
Proposes potential
ways to keep costs
under control while
maximizing the
benefits of an
economic initiative
remains ethical and
Proposes potential
ways to keep costs
under control while

of an economic initiative
remains ethical and
culturally equitable;
impartially evaluates
pros and cons of cost
containment.
Justify the relevance
and value of the
quantitative and
qualitative
economic, financial,
and scholarly
evidence used to
support
recommendations
throughout a report.
Does not attempt to
justify the relevance
and value of the
quantitative and
financial, and
scholarly evidence
used to support
recommendations
Attempts to justify the
relevance and value
of evidence used to
support
recommendations,

but justification lacks
logic or clarity.
Justifies the
relevance and value
of the quantitative
and qualitative
economic, financial,
and scholarly
evidence used to
support
recommendations
Justifies the relevance
and value of the
quantitative and
financial, and scholarly
evidence used to
support
recommendations
throughout a report;
suggests criteria that
could be used to
evaluate the evidence.
Communicate a
business case in a
Does not
communicate a
Communication is not
consistently clear,

Communicates a
business case in a
Communicates a
business case in a
©1998-2017 HealthWyse LLC 1 of 2 Business Case for a New
Economic...
CRITERIA NON-PERFORMANCE BASIC PROFICIENT
DISTINGUISHED
logically structured
and concise manner,
writing content
clearly with correct
use of grammar,
punctuation, and
spelling.
business case in a
and concise manner,
writing content clearly
with correct use of
grammar,
punctuation, and
spelling.
logically structured,
or concise; errors in
grammar,
punctuation, or
spelling distract from

the message.
and concise manner,
writing content clearly
with correct use of
grammar,
punctuation, and
spelling.
logically structured,
clear, concise, and
persuasive manner;
grammar, punctuation,
and spelling are without
errors.
Effectively support a
report with relevant
economic data and
scholarly sources,
correctly formatting
citations and
references using
current APA style.
Does not effectively
support a report with
relevant economic
data and scholarly
sources, correctly
formatting citations
and references using
current APA style.
Data or sources lack

relevance, or
citations or
references are
incorrectly formatted.
Effectively supports a
economic data and
scholarly sources,
citations and
references using
current APA style.
Effectively supports a
economic data and
scholarly sources,
citations and references
using current APA style.
Citations are free from
all errors.
©1998-2017 HealthWyse LLC 2 of 2 Business Case for a New
Economic...
Guiding Questions
Business Case for a New Economic Opportunity
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 assignment.
You may find it useful to use this document as a pre-writing
exercise or as a final check to ensure that you have sufficiently
addressed all the grading criteria for this assignment. This

document is a resource to help you complete the assignment. Do
not turn in this document as your assignment submission.
Part 1: Risk and Mitigation Analysis
Analyze the opportunities and risks relevant to your proposed
· What are the opportunities that will be created by your
proposed economic initiative?
· How will these opportunities be beneficial to your care
setting?
· What are the risks associated with your proposed economic
initiative?
· How could these risks pose a threat to the financial security of
your care setting?
· How do the potential economic opportunities compare to the
potential economic risks?Propose ethical and culturally
sensitive solutions to address the risks associated with your
economic initiative to ensure the future security of your care
setting.
· Which risks that you identified are potentially the most
problematic for your care setting?
· How could each risk be mitigated?
· How could you modify your proposed economic initiative?
· How have other care settings and experts in the field dealt
with similar risks?
· What other alternatives could you pursue to reduce the risks
associated with your proposed initiative?

· How have ethics and equality factored into your proposed
solutions (are your solutions not unfairly burdening or
disadvantaging any specific groups)?
· How will this proposal affect community health care delivery
outcomes?
· What makes this a great opportunity for economic growth?
· What might be potential issues to consider?
Part 2: Cost-Benefit Analysis
Analyze the costs and benefits of your proposed economic
initiative over a five-year strategic outlook.
· Did you complete the Cost-Benefit Analysis Template?
· Include the template as an appendix item, which you will
reference during your narrative analysis of your findings.
· How does your completed spreadsheet support or warn against
specific aspects of your proposed economic initiative?
· How would you recommend the findings of the cost-benefit
analysis be incorporated into the decision-making process
regarding the feasibility of your proposed economic initiative?
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.
· What are the costs that you are most likely able to control or
reduce?
· How would you go about ensuring this?
· How would manipulating these costs potentially affect the
benefits of your proposed initiative?
· What are some strategies to maintain or maximize these
benefits while making your proposed adjustments in costs?

· How do you plan to ensure that any adjustments to the costs or
benefits of your proposed initiative are done ethically and in an
equitable way?
Address Generally Throughout Business Case
Justify the relevance and value of the quantitative and
qualitative economic, financial, and scholarly evidence you
used to support your recommendations throughout your report.
Note: This criterion will be addressed throughout your report.
You should be using evidence that is relevant and persuasive to
support your findings, proposals, and recommendations. You
should be illustrating one or more of the following when citing
support evidence to the senior management:
· How is the evidence relevant to your care setting?
· How is the evidence relevant to your proposed economic
initiative?
· How does the evidence illustrate a solution that has been
successful in the past?
· How does the evidence illustrate that an initiative or solution
is likely to be a net benefit to the care setting?Communicate
your business case in a logically structured and concise manner,
writing content clearly with correct use of grammar,
punctuation, and spelling.
· Is your report logically structured?
· Is your report 3–5 double-spaced pages?
· Is your writing clear and free from errors?
· Does your report also include both a title page and reference
list?Effectively support your report with relevant economic data
and scholarly sources, correctly formatting citations and

references using current APA style.
· Did you cite 4–5 sources that provided economic,
environmental, or scholarly support of your proposal and
analysis?
· Did you use a combination of quantitative and qualitative
evidence?
· Did you format your citations according to current APA style?
1
3
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 Discount Rate2%PV
Denominator1.001.021.041.061.081.10Net Benefit$ - 0End of
worksheet

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