Functional Health Pattern Analysis

In this assignment, you will be exploring actual and potential health problems in the childhood years using a functional health assessment and Erickson’s Stages of Child Development. To complete this assignment, do the following:

  1. Using the textbook, complete the “Children’s Functional Health Pattern Assessment.” Follow the instructions in the resource for completing the assignment.
  2. Cite and reference any outside sources used in your answers. Include in your assessment a thorough discussion of Erickson’s Stages of Child Development as it pertains to the development age of the child.

While APA format is not required for the body of this assignment, solid academic writing is expected and in-text citations and references should be presented using APA documentation guidelines, which can be found in the APA Style Guide, located in the Student Success Center.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Textbook1. Physical Examination and Health Assessment

Read Chapters 3-4, and the age-specific information in Chapters 8-28 in Physical Examination and Health Assessment

Access The Agency for HealthCare Research and Quality (AHRQ) website and select one of the multiple funded programs available to research.

Write a 1,500-1,750-word essay addressing the following questions with regard to your chosen program. Use at least three to five academic sources in writing this paper.

  1. What is the mission and budget?
  2. What is the strategic plan of the program?
  3. What do they do to control the quality of health care?
  4. What do they do for cost containment?
  5. How are they aligned with health care professionals?
  6. Is this a valuable program or a waste of taxpayer money? If the program has faults, how could it be improved or should it be abandoned? Be prepared to defend your position.

Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is required.

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ROLES IN NURSING


Overview/Description
: The final assignment will synthesize what you have discovered about the different advanced practice roles and scope of practice found in the master of nursing curriculum: NP, nurse educator, nurse informaticist, and nurse administrator. You will review all roles and then examine the specialty for which you were admitted, focusing on the scope of practice, core competencies, certification requirements, and legal aspects of practice for that specific role. You will also identify the practice environment and population you will be working with, as well as peers and colleagues. In addition, you will discuss your future leadership role and participation in professional organizations.

Your paper is to be based on current literature, standards of practice, core competencies, and certification bodies for your chosen role. The paper should be 10 pages excluding the title and reference, and APA format is required.

Criteria:

  • Advanced Practice Roles in Nursing:
    • Compare and contrast the roles of the NP, nurse educator, nurse informaticist, and nurse administrator in advanced practice nursing pertaining to clinical practice, primary care, education, administration, and research.
  • Selected Advanced Practice Role:
    • Examine regulatory and legal requirements for the state in which you plan to practice.
    • Describe the professional organizations available for membership based on your selected role.
    • Identify required competencies, including certification requirements for your selected role.
    • Predict the organization and setting, population, and colleagues with whom you plan to work.
  • Leadership Attributes of the Advanced Practice Role:
    • Determine your leadership style (http://psychology.about.com/library/quiz/bl-leadershipquiz.htm).
    • Identify leadership attributes you currently possess, and attributes you may need to develop.
    • Determine how to attain and evaluate those missing attributes.
  • Health Policy and the Advanced Practice Role
  • Visit the Robert Wood Johnson Foundation (http://www.rwjf.org/en/about-rwjf/newsroom/features-and-articles/health-policy.html) and identify a health policy issue. Conduct a review of literature and address the following:
    • Describe the current policy and what needs to change; justify your conclusions with citations from the literature.
    • Provide the process required to make the change with key players and parties of interest.
    • Explain how you could lead the effort to make or influence the change in policy.
    • Predict the effect on healthcare quality if the change in policy is implemented.
Assignment 2 Grading CriteriaMaximum Points
Advanced Practice Roles in Nursing:Compared and contrasted the roles of the NP, nurse educator, nurse informaticist, and nurse administrator in advanced practice nursing pertaining to clinical practice, primary care, education, administration, and research.60
Individual Advanced Practice Role (20 points each):Examined regulatory and legal requirements for the state in which you plan to practice.Described the professional organizations available for membership based on your selected role.Identified required competencies, including certification requirements for your selected role.Predicted the organization and setting, population, and colleagues with whom you plan to work.80
Leadership Attributes of the Advanced Practice Role (20 points each):Determined your leadership style.Identified leadership attributes you currently possess and attributes you may need to develop.Determined how to attain and evaluate those missing attributes.60
Health Policy and the Advanced Practice Role (20 points each):Visited the Robert Wood Johnson Foundation and identified a health policy issue. Conducted a review of literature and addressed the following:Described the current policy and what needs to change; justified your conclusions with citations from the literature.Provided the process required to make the change with key players and parties of interest.Explained how you could lead the effort to make or influence the change in policy.Predicted the effect on healthcare quality if the change in policy is implemented.80
APA Style/Format:Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in appropriate and accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. APA format was used.20
Total:300

ROLES IN NURSING


Overview/Description
: The final assignment will synthesize what you have discovered about the different advanced practice roles and scope of practice found in the master of nursing curriculum: NP, nurse educator, nurse informaticist, and nurse administrator. You will review all roles and then examine the specialty for which you were admitted, focusing on the scope of practice, core competencies, certification requirements, and legal aspects of practice for that specific role. You will also identify the practice environment and population you will be working with, as well as peers and colleagues. In addition, you will discuss your future leadership role and participation in professional organizations.

Your paper is to be based on current literature, standards of practice, core competencies, and certification bodies for your chosen role. The paper should be 10 pages excluding the title and reference, and APA format is required.

Criteria:

  • Advanced Practice Roles in Nursing:
    • Compare and contrast the roles of the NP, nurse educator, nurse informaticist, and nurse administrator in advanced practice nursing pertaining to clinical practice, primary care, education, administration, and research.
  • Selected Advanced Practice Role:
    • Examine regulatory and legal requirements for the state in which you plan to practice.
    • Describe the professional organizations available for membership based on your selected role.
    • Identify required competencies, including certification requirements for your selected role.
    • Predict the organization and setting, population, and colleagues with whom you plan to work.
  • Leadership Attributes of the Advanced Practice Role:
    • Determine your leadership style (http://psychology.about.com/library/quiz/bl-leadershipquiz.htm).
    • Identify leadership attributes you currently possess, and attributes you may need to develop.
    • Determine how to attain and evaluate those missing attributes.
  • Health Policy and the Advanced Practice Role
  • Visit the Robert Wood Johnson Foundation (http://www.rwjf.org/en/about-rwjf/newsroom/features-and-articles/health-policy.html) and identify a health policy issue. Conduct a review of literature and address the following:
    • Describe the current policy and what needs to change; justify your conclusions with citations from the literature.
    • Provide the process required to make the change with key players and parties of interest.
    • Explain how you could lead the effort to make or influence the change in policy.
    • Predict the effect on healthcare quality if the change in policy is implemented.
Assignment 2 Grading CriteriaMaximum Points
Advanced Practice Roles in Nursing:Compared and contrasted the roles of the NP, nurse educator, nurse informaticist, and nurse administrator in advanced practice nursing pertaining to clinical practice, primary care, education, administration, and research.60
Individual Advanced Practice Role (20 points each):Examined regulatory and legal requirements for the state in which you plan to practice.Described the professional organizations available for membership based on your selected role.Identified required competencies, including certification requirements for your selected role.Predicted the organization and setting, population, and colleagues with whom you plan to work.80
Leadership Attributes of the Advanced Practice Role (20 points each):Determined your leadership style.Identified leadership attributes you currently possess and attributes you may need to develop.Determined how to attain and evaluate those missing attributes.60
Health Policy and the Advanced Practice Role (20 points each):Visited the Robert Wood Johnson Foundation and identified a health policy issue. Conducted a review of literature and addressed the following:Described the current policy and what needs to change; justified your conclusions with citations from the literature.Provided the process required to make the change with key players and parties of interest.Explained how you could lead the effort to make or influence the change in policy.Predicted the effect on healthcare quality if the change in policy is implemented.80
APA Style/Format:Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in appropriate and accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation. APA format was used.20
Total:300

CANCER

The American Cancer Society estimates that by the end of 2012, more than 226,000 women will be diagnosed with breast cancer and more than 241,000 men will be diagnosed with prostate cancer (American Cancer Society, 2012a; American Cancer Society 2012b). With such prevalence of women’s and men’s cancers, patient education and preventive services are essential. In clinical settings, advanced practice nurses must assist physicians in educating patients on risk factors, preventive services, and for patients diagnosed with cancer, on potential drug treatments. The clinical implications of women’s and men’s cancer greatly depend on early detection, which is primarily achieved through preventive services. In this Assignment, you consider the short-term and long-term implications of cancer and drug treatments associated with women’s and men’s health, as well as appropriate preventive services.

To prepare:
  • Select a type of cancer associated with women’s or men’s health such as breast, cervical, or ovarian cancer in women and prostate cancer in men.
  • Locate and review articles examining the type of cancer you selected.
  • Review the U.S. Preventive Services Task Force article in the Learning Resources. Think about available preventive services that providers might recommend for patients at risk of this type of cancer.
  • Select two of the following factors: genetics, gender, ethnicity, age, or behavior. Reflect on how these factors might impact decisions related to preventive services.
  • Consider drug treatment options for patients diagnosed with the type of cancer you selected including short-term and long-term implications of the treatments.

CANCER

The American Cancer Society estimates that by the end of 2012, more than 226,000 women will be diagnosed with breast cancer and more than 241,000 men will be diagnosed with prostate cancer (American Cancer Society, 2012a; American Cancer Society 2012b). With such prevalence of women’s and men’s cancers, patient education and preventive services are essential. In clinical settings, advanced practice nurses must assist physicians in educating patients on risk factors, preventive services, and for patients diagnosed with cancer, on potential drug treatments. The clinical implications of women’s and men’s cancer greatly depend on early detection, which is primarily achieved through preventive services. In this Assignment, you consider the short-term and long-term implications of cancer and drug treatments associated with women’s and men’s health, as well as appropriate preventive services.

To prepare:
  • Select a type of cancer associated with women’s or men’s health such as breast, cervical, or ovarian cancer in women and prostate cancer in men.
  • Locate and review articles examining the type of cancer you selected.
  • Review the U.S. Preventive Services Task Force article in the Learning Resources. Think about available preventive services that providers might recommend for patients at risk of this type of cancer.
  • Select two of the following factors: genetics, gender, ethnicity, age, or behavior. Reflect on how these factors might impact decisions related to preventive services.
  • Consider drug treatment options for patients diagnosed with the type of cancer you selected including short-term and long-term implications of the treatments.

Assessing the Genitalia and Rectum

Patients are frequently uncomfortable discussing with health care professionals issues that involve the genitalia and rectum; however, gathering an adequate history and properly conducting a physical exam are vital. Examining case studies of genital and rectal abnormalities can help prepare advanced practice nurses to accurately assess patients with problems in these areas.

In this Discussion, you will consider case studies that describe abnormal findings in patients seen in a clinical setting.

Note: By Day 1 of this week, your Instructor will have assigned you to one of the following specific case studies for this Discussion. Also, your Discussion post should be in the SOAP Note format, rather than the traditional narrative style Discussion posting format. Refer to Chapter 2 of the Sullivan text and the Comprehensive SOAP Template in the Week 4 Learning Resources for guidance. Remember that not all comprehensive SOAP data are included in every patient case.

Case : TB

To prepare:

With regard to the case study you were assigned:

·        Review this week’s Learning Resources, and consider the insights they provide about the case study.

·        Consider what history would be necessary to collect from the patient in the case study you were assigned.

·        Consider what physical exams and diagnostic tests would be appropriate to gather more information about the patient’s condition. How would the results be used to make a diagnosis?

·        Identify at least five possible conditions that may be considered in a differential diagnosis for the patient.

Post a Soap note

1.      a description of the health history you would need to collect from the patient in the case study to which you were assigned.

2.      Explain what physical exams and diagnostic tests would be appropriate and how the results would be used to make a diagnosis.

3.      List five different possible conditions for the patient’s differential diagnosis, and justify why you selected each.

Please read below regarding discussion case study posts   

Your response should be in soap note format 

But you don’t have to make up any information.  If information is not provided in the case study do not add it.  State:  None or information not provided.

For the additional history questions you need to come up with appropriate questions thatapplies to case study scenarios and write them down.

For physical exam section  –  you are expected to explain the appropriate physical exam components that needs to be done with reference to the case study.  You should mention the systems and include information on what you will be looking for in each system based on the information given in the case study  .

For the diagnostic tests  –  You are expected to come up with appropriate diagnostic tests that pertains to the case study scenario and the differential diagnosis that you are required to come up with. 

 If you have five differential diagnosis include information from most likely diagnosis to lease likely diagnosis and explain why you chose those differential diagnosis and the diagnostic tests  .  Again all pertaining to the information given in the case study.  It is like proving your case  .  Why and why not  . 

HEALTH CARE COMPETITION

You have been part of the orthopedic center for 5 years. In that time, you have seen the center grow and the need for expansion.

Write a paper of 2–3 pages discussing the external forces that can impact the decision-making process for growth.

In your paper, answer the following questions::

  • How will government regulation impact decision making?
  • Will the community’s makeup be a consideration for decision makers?
  • How can the market share be instrumental in deciding on capital expenditures and the creation of new health care programs and services?
  • What is benchmarking, and how does it influence economical organizational decision making?

Given your readings and discussions during this module, reflect on who ought to participate in crafting healthcare policies and, perhaps more importantly, should NOT be a significant participant in writing healthcare policies, and explain why or why not. Consider the following questions in formulating your response to the readings, discussion boards, and study notes as well as current events in the healthcare field for this week:

  • How do my personal/professional experiences relate to the course readings?
  • What issues in the module impacted me the most given my professional and/or personal experiences?
  • To what degree have the discussions in the class been helpful in relating to the issues raised by the readings?
  • Are there any issues that arise that have not been addressed in the readings?
  • What other information, if any, would I need to completely address the policy issue or course related topics at hand?

Your reflection papers should address different topics/ materials covered and be no more than 3-4 pages using APAformat. (NOTE: these questions are merely offered as suggestions, and you may certainly create a reflection paper in a way that best suits your reaction to the materials we have covered during the week).

HEALTH CARE COMPETITION

You have been part of the orthopedic center for 5 years. In that time, you have seen the center grow and the need for expansion.

Write a paper of 2–3 pages discussing the external forces that can impact the decision-making process for growth.

In your paper, answer the following questions::

  • How will government regulation impact decision making?
  • Will the community’s makeup be a consideration for decision makers?
  • How can the market share be instrumental in deciding on capital expenditures and the creation of new health care programs and services?
  • What is benchmarking, and how does it influence economical organizational decision making?

Given your readings and discussions during this module, reflect on who ought to participate in crafting healthcare policies and, perhaps more importantly, should NOT be a significant participant in writing healthcare policies, and explain why or why not. Consider the following questions in formulating your response to the readings, discussion boards, and study notes as well as current events in the healthcare field for this week:

  • How do my personal/professional experiences relate to the course readings?
  • What issues in the module impacted me the most given my professional and/or personal experiences?
  • To what degree have the discussions in the class been helpful in relating to the issues raised by the readings?
  • Are there any issues that arise that have not been addressed in the readings?
  • What other information, if any, would I need to completely address the policy issue or course related topics at hand?

Your reflection papers should address different topics/ materials covered and be no more than 3-4 pages using APAformat. (NOTE: these questions are merely offered as suggestions, and you may certainly create a reflection paper in a way that best suits your reaction to the materials we have covered during the week).

IMPORTANCE OF ANTICIPATING FINANCIAL FLUCTUATIONS

Throughout this course, you’ve examined the importance of anticipating financial fluctuations that may impact your organization’s ability to provide services. While financial managers have no time machines or crystal balls, they do have expense forecasts. Expense forecasting is one of the preeminent tools that financial managers can use to prepare their organizations for future fiscal turbulence. In this Assignment, you will examine a scenario and generate a corresponding expense forecast in Excel.

Before pursuing an opportunity or making a major purchase, financial decision makers must first ascertain if the expenditures are justified. Determining whether a new process, system, or purchase will yield worthwhile returns is no easy task. However, managers have a variety of tools to help them decide whether the new expenditure is warranted. Analyzing a venture’s benefit/cost ratio, marginal profit and loss statement, and break-even points enable nurse managers to make educated decisions about how they choose to commit their funds.

Note: For those Assignments in this course that require you to perform calculations you must:

  • Use the Excel spreadsheet template for the Week 3 assignment
  • Show all your calculations and formulas in the spreadsheet.
  • Answer any questions included with the problems (as text in the Excel spreadsheet).

A title and reference page are NOT needed in this assignment.  Put your name and assignment at the top of the Excel spreadsheet.

For those not comfortable with the use of Microsoft Excel, this week’s Optional Resources suggest several tutorials.

To prepare:

·       Review the information in the Week 9 and 10 Learning Resources dealing with expense forecasting, profit and loss, break-even analysis, and benefit and cost ratio analysis. Focus on how they are calculated and how they can be used in decision making.

·       View the following tutorial videos, provided in this week’s Learning Resources.

o   Week 10 Application Assignment Tutorial: Benefit Cost Ratio

o   Week 10 Application Assignment Tutorial: Breakeven Analysis

o   Week 10 Application Assignment Tutorial: Expense Forecasting

o   Week 10 Application Assignment Tutorial: Profit and Loss Scenario

Use the Week 10 Application Assignment Template, provided in this week’s Learning Resources, to complete this assignment.   Carefully examine the information in each of the scenarios and provide the necessary calculations. Using this information will help you answer the questions. Note: All the scenarios will be submitted as one document. Each scenario will be on a different tab in the spreadsheet.

Expense Forecasting

In this Application Assignment you calculate scenarios focusing on benefit/cost ratio analysis, marginal profit and loss statements, and break-even analysis. For these scenarios, you will utilize the provided figures to perform calculations and then make recommendations about the viability of the investment opportunities 

Expense Forecasting Scenario

Your department has performed 20,000 procedures during the first six months (January–June) of 20X1. Spending during that period of time was $210,000 for fixed expense items and $1,200,000 for variable expense items. Of those amounts, $50,000 of fixed expense money was spent on preparing for a Joint Commission survey. Volume is anticipated to be 10% higher in the second half of the year. On November 1st, two new procedure technicians will begin work. The salary and fringe benefit costs for each are $96,000/year. Based on the information provided, prepare an expense forecast for 20X1.

Annualization for Fixed:  (Adjusted Total for Year to Date Expense/6) * 12 =Total Annualized Amounts
    
Annualization for Variable (Adjusted Total for Year to Date Expense/ 20,000) * 40,000 =Total Annualized Amounts.

Financial Analysis Cycle

Marginal Profit and Loss Statement Scenario

You are examining a proposal for a new business opportunity – a new procedure for which demand is expected to be 1,400 units the first year, growing by 600 units a year thereafter. The price charged per procedure is $1,000. The collection rate is anticipated to be 80%. Each procedure consumes $300 of supplies. Salary cost is estimated to cost $540,000 each year, fringe benefits are 25% of salaries, rent for the facility is $55,000/yr and operating cost are $120,000/yr.

Questions:

1.    Develop a marginal profit and loss statement for this business opportunity.

Based on that analysis, should this opportunity be pursued?

Break-Even Analysis Scenario

You can charge $1,075 for a new service. Demand is anticipated to be 8,000 units a year. Your business is able to handle up to 16,500 units annually, so capacity should not be a problem. The average collection rate is 80%. The new service has annual fixed costs of $4,700,000. Variable cost per unit of service is $420.

Question: Use break-even analysis to determine if this new service is financially viable. If the business is not financially viable, what steps could you take to make a case to proceed with implementation?  Explain your decision.

Benefit/Cost Ratio Analysis Scenario

You are considering the acquisition of a new piece of equipment with a useful life of five years. This new technology will make your clinical operation more efficient and allow for a reduction of 10 FTEs. The equipment purchase price is $4,500,000 plus 10% installation fee. The purchase price includes service for the first year, an item that has an annual cost of $10,000. There is a potential for additional volume of 150,000 units in the first year, growing by 30,000 each year thereafter. The price charged per unit is $15.00 with a 50% collection rate. The staff being eliminated are paid $12.50 per hour. The fringe benefits rate is 20%. The hurdle rate is 7.5%.

Questions: After reviewing Dr. Ward’s Video and the calculations below, please answer the following questions:

·       What is meant by  benefit/cost ratio, average payback period and ROI  and why are the all  important to understand when purchasing new equipment?

·       Based on this information, would you pursue this opportunity?

·       Explain your decision  in 250-500 words in the text box below.

Link to video: Laureate Education (Producer). (2012). Expense forecasting. Baltimore, MD: Author

IMPORTANCE OF ANTICIPATING FINANCIAL FLUCTUATIONS

Throughout this course, you’ve examined the importance of anticipating financial fluctuations that may impact your organization’s ability to provide services. While financial managers have no time machines or crystal balls, they do have expense forecasts. Expense forecasting is one of the preeminent tools that financial managers can use to prepare their organizations for future fiscal turbulence. In this Assignment, you will examine a scenario and generate a corresponding expense forecast in Excel.

Before pursuing an opportunity or making a major purchase, financial decision makers must first ascertain if the expenditures are justified. Determining whether a new process, system, or purchase will yield worthwhile returns is no easy task. However, managers have a variety of tools to help them decide whether the new expenditure is warranted. Analyzing a venture’s benefit/cost ratio, marginal profit and loss statement, and break-even points enable nurse managers to make educated decisions about how they choose to commit their funds.

Note: For those Assignments in this course that require you to perform calculations you must:

  • Use the Excel spreadsheet template for the Week 3 assignment
  • Show all your calculations and formulas in the spreadsheet.
  • Answer any questions included with the problems (as text in the Excel spreadsheet).

A title and reference page are NOT needed in this assignment.  Put your name and assignment at the top of the Excel spreadsheet.

For those not comfortable with the use of Microsoft Excel, this week’s Optional Resources suggest several tutorials.

To prepare:

·       Review the information in the Week 9 and 10 Learning Resources dealing with expense forecasting, profit and loss, break-even analysis, and benefit and cost ratio analysis. Focus on how they are calculated and how they can be used in decision making.

·       View the following tutorial videos, provided in this week’s Learning Resources.

o   Week 10 Application Assignment Tutorial: Benefit Cost Ratio

o   Week 10 Application Assignment Tutorial: Breakeven Analysis

o   Week 10 Application Assignment Tutorial: Expense Forecasting

o   Week 10 Application Assignment Tutorial: Profit and Loss Scenario

Use the Week 10 Application Assignment Template, provided in this week’s Learning Resources, to complete this assignment.   Carefully examine the information in each of the scenarios and provide the necessary calculations. Using this information will help you answer the questions. Note: All the scenarios will be submitted as one document. Each scenario will be on a different tab in the spreadsheet.

Expense Forecasting

In this Application Assignment you calculate scenarios focusing on benefit/cost ratio analysis, marginal profit and loss statements, and break-even analysis. For these scenarios, you will utilize the provided figures to perform calculations and then make recommendations about the viability of the investment opportunities 

Expense Forecasting Scenario

Your department has performed 20,000 procedures during the first six months (January–June) of 20X1. Spending during that period of time was $210,000 for fixed expense items and $1,200,000 for variable expense items. Of those amounts, $50,000 of fixed expense money was spent on preparing for a Joint Commission survey. Volume is anticipated to be 10% higher in the second half of the year. On November 1st, two new procedure technicians will begin work. The salary and fringe benefit costs for each are $96,000/year. Based on the information provided, prepare an expense forecast for 20X1.

Annualization for Fixed:  (Adjusted Total for Year to Date Expense/6) * 12 =Total Annualized Amounts
    
Annualization for Variable (Adjusted Total for Year to Date Expense/ 20,000) * 40,000 =Total Annualized Amounts.

Financial Analysis Cycle

Marginal Profit and Loss Statement Scenario

You are examining a proposal for a new business opportunity – a new procedure for which demand is expected to be 1,400 units the first year, growing by 600 units a year thereafter. The price charged per procedure is $1,000. The collection rate is anticipated to be 80%. Each procedure consumes $300 of supplies. Salary cost is estimated to cost $540,000 each year, fringe benefits are 25% of salaries, rent for the facility is $55,000/yr and operating cost are $120,000/yr.

Questions:

1.    Develop a marginal profit and loss statement for this business opportunity.

Based on that analysis, should this opportunity be pursued?

Break-Even Analysis Scenario

You can charge $1,075 for a new service. Demand is anticipated to be 8,000 units a year. Your business is able to handle up to 16,500 units annually, so capacity should not be a problem. The average collection rate is 80%. The new service has annual fixed costs of $4,700,000. Variable cost per unit of service is $420.

Question: Use break-even analysis to determine if this new service is financially viable. If the business is not financially viable, what steps could you take to make a case to proceed with implementation?  Explain your decision.

Benefit/Cost Ratio Analysis Scenario

You are considering the acquisition of a new piece of equipment with a useful life of five years. This new technology will make your clinical operation more efficient and allow for a reduction of 10 FTEs. The equipment purchase price is $4,500,000 plus 10% installation fee. The purchase price includes service for the first year, an item that has an annual cost of $10,000. There is a potential for additional volume of 150,000 units in the first year, growing by 30,000 each year thereafter. The price charged per unit is $15.00 with a 50% collection rate. The staff being eliminated are paid $12.50 per hour. The fringe benefits rate is 20%. The hurdle rate is 7.5%.

Questions: After reviewing Dr. Ward’s Video and the calculations below, please answer the following questions:

·       What is meant by  benefit/cost ratio, average payback period and ROI  and why are the all  important to understand when purchasing new equipment?

·       Based on this information, would you pursue this opportunity?

·       Explain your decision  in 250-500 words in the text box below.

Link to video: Laureate Education (Producer). (2012). Expense forecasting. Baltimore, MD: Author