Description
If the price of a shmoo increases at a simple annual rate of 10%, while at the same time (one year) a $2000 bank deposit increases to $2860, then the SIMPLE ONE-YEAR REAL return from the deposit will be?
Answer:30%
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Explanation & Answer
Deposit at end of I year =2860
Inflation =10%
Deposit at end of 1 year adjusted for inflation of 10% =2860/1.1=2600
Return =(2600-2000)/2000=30
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In macroeconomics there are two questions that serve as foundation to any subsequent analysis: 1) how
to meas ...
Growth Formulas and Relation to Welfare
Exercise 1
In macroeconomics there are two questions that serve as foundation to any subsequent analysis: 1) how
to measure (real) output growth? and 2) how is growth connected to wellbeing?
As for the first question, there are three ways that can be done, starting with the basic definition of
percentage difference between two numbers, say x1 compared to x0 when there is only one good (e.g.
apples). For the economy as a whole, the focus is on real GDP growth, which holds prices constant on a
given year (base year) then apply them before, during, and after that year in order to calculate the total
dollar value of all goods and services produced (i.e. we need prices to add up real quantities in dollar
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In this exercise you will work out the connection between the three ways to measure GDP growth: 1. As a
percentage change holding prices constant. 2. Expressing growth in terms of a common item (converting
everything into a particular good (e.g. apples). And 3. as the weighted average of the growth in each of
the goods weighted by their expenditure shares.
The second question in macroeconomics refers to a mapping from goods and services to subjective well‐
being. Yes, there is a way.
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Complete a cost-benefit analysis (CBA) using the Shasta Family Practice case study.
Prepare a 1- to 2-page Business Plan that you will submit to the Shasta Vice President Dr. Rudy Mason that synthesizes your CBA results.
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The spreadsheet will automatically calculate annual costs. Once you have your cost results, you will be able to propose the physician extender plan that will provide the most cost benefit for the three outpatient clinics.
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Explain the concept of using a physician extender and the two types of extenders.
Provide a brief description of the services of each clinic.
Identify the purpose and assumptions associated with a cost-benefit analysis (CBA)
Share why a CBA was appropriate for determining the physician extender alternative.
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Resources:
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Chapter 9, “Comparing Costs and Benefits” (pp. 217–229)
Chapter 10, “Writing a Business Plan” (pp. 249–259)
Pink, G. H., & Song, P. H. (2018) Gapenski’s cases in healthcare finance (6th ed.). Chicago, IL: Health Administration Press.
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Giffin, R.B., & Giffin, M.F. (n.d.). Cost-benefit analysis: A primer for community health workers. https://azprc.arizona.edu/sites/default/files/CHWtoolkit/PDFs/FRAMEWOR/COSTBENE.PDF
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In macroeconomics there are two questions that serve as foundation to any subsequent analysis: 1) how
to measure (real) output growth? and 2) how is growth connected to wellbeing?
As for the first question, there are three ways that can be done, starting with the basic definition of
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Using the case study for Shasta Outpatient Clini ...
HLTH 4520 WU Physician Extenders Professionally Trained Individuals Analysis
Assignment: Choosing an Alternative: Which Option Is Most Cost-Effective?
Using the case study for Shasta Outpatient Clinics, you will create a cost-benefit analysis (CBA). The Shasta Clinic leadership is trying to determine whether a staffing enhancement of a physician extender is needed in all three of their clinics or in only one or two of them. By applying the concepts of CBA, you will make a recommendation and present it in a business plan that identifies your recommendation for the physician extender. You will assess fixed costs (FC), variable costs (VC), and total costs (TC). The Assignment will give you experience creating a business case that you can use as a healthcare manager to state your case with sound financial principles.
The Assignment: (1- to 2-page Business Plan and Excel Sheet)
To complete this Assignment, you will:
Complete a cost-benefit analysis (CBA) using the Shasta Family Practice case study.
Prepare a 1- to 2-page Business Plan that you will submit to the Shasta Vice President Dr. Rudy Mason that synthesizes your CBA results.
Part I. The CBA (1-page Excel spreadsheet)
Download the Shasta Family Practice spreadsheet (in the Learning Resources)
Using the data provided in the Shasta Family Practice case study, insert the fixed and variable costs associated with each physician extender alternative into the spreadsheet. The data will be entered into the cells shaded green. Do not enter data in the cells shaded in pink.
The spreadsheet will automatically calculate annual costs. Once you have your cost results, you will be able to propose the physician extender plan that will provide the most cost benefit for the three outpatient clinics.
Part II. Business Plan (2–3 pages)
In order to communicate your results, you will prepare a professional business plan for delivery to Dr. Rudy Mason, Vice President of the Shasta Family Practice. You will prepare a Business Plan that addresses the following:
Explain the concept of using a physician extender and the two types of extenders.
Provide a brief description of the services of each clinic.
Identify the purpose and assumptions associated with a cost-benefit analysis (CBA)
Share why a CBA was appropriate for determining the physician extender alternative.
Identify the FC, VC, and TC for an Outpatient Surgery Center.
Identify the FC, VC, and TC for an Internal Medicine Center.
Identify the FC, VC, and TC for an Eldercare Clinic.
Explain which physician extender alternative provides the most cost-benefit given the CBA results for each clinic.
Explain and support your recommendations for assessing the clinical and financial outcomes.
Resources:
Penner, S. J. (2017). Economics and financial management for nurses and nurse leaders (3rd ed.). New York, NY: Springer Publishing.
Chapter 9, “Comparing Costs and Benefits” (pp. 217–229)
Chapter 10, “Writing a Business Plan” (pp. 249–259)
Pink, G. H., & Song, P. H. (2018) Gapenski’s cases in healthcare finance (6th ed.). Chicago, IL: Health Administration Press.
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Putra, L.D. (2008). How to calculate cost variances? [8 types]. http://accounting-financial-tax.com/2008/12/how-to-calculate-cost-variances-8-types/
Giffin, R.B., & Giffin, M.F. (n.d.). Cost-benefit analysis: A primer for community health workers. https://azprc.arizona.edu/sites/default/files/CHWtoolkit/PDFs/FRAMEWOR/COSTBENE.PDF
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