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. Case Study 5, “Shasta Family Practice (Cost-Benefit      Analysis)” Excel Spreadsheet for Shasta Family Practice 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

For many costs and benefits associated with government projects/actions, there are no market prices. How do governments value, for instance, time, life, and natural resources? How might the U.S. government (or the State of Arizona) value the Grand Canyon, one of the wonders of the world?