1)You want to update your car with a navigation system. Adding this feature requires a flat fee of $500, and the service provider requires monthly charges of $20. In your business, as the owner, you estimate that this device can save time and money, about $35 per month. You plan to keep the car for another 3 years.
Calculate the break-even point for the device in months.
Based on your calculation, would you have the system installed in your car? Why, or why not?
Discuss with your fellow students how and why similar break-even analysis may be applicable in health care organizations.
If no initial posts exist to allow for a response to be made, you may submit an additional initial post addressing another aspect of the unit topic.
2)As a consumer, do you conduct any research on a healthcare facility or a provider before choosing to utilize them for you or your family's healthcare needs? Do you think tools like Hospital Compare are enough to help consumers make healthcare decisions? What other sources or types of measurement do you think would help inform your decision as a consumer?
If no initial posts exist to allow for a response to be made, you may submit an additional initial post addressing another aspect of the unit topic.
3)You are a community health educator in the Southwest United States. Your county health department received a grant to create a new initiative that is designed to decrease smoking rates in the county. Your health commissioner and Board of Health want to create a team of teachers, parents, community leaders, and public health professionals to develop an intervention.
Discuss which cognitive and affective methods you believe would be useful for this purpose, and why? Give specific examples as you explain your rationale.
Full Answer Section
Break-even point = $500 / $35 = 14.29 months
This means that it will take the business owner 14.29 months to break even on the cost of the navigation system. After that point, the business owner will start to save money by using the system.
Would I have the system installed in my car?
Yes, I would have the navigation system installed in my car. The break-even point is relatively short, and the system is likely to save me time and money in the long run.
Break-even analysis in healthcare organizations
Break-even analysis can be used in healthcare organizations to make a variety of decisions, such as:
- Whether to invest in new equipment or technology
- Whether to offer new services or programs
- Whether to enter new markets
For example, a hospital might use break-even analysis to decide whether to invest in a new MRI machine. The hospital would consider the cost of the machine, the expected revenue from new patients, and the expected savings from reduced referral costs.
2) Research on healthcare facilities and providers
As a consumer, I do some research on healthcare facilities and providers before choosing to utilize them for myself or my family's healthcare needs. I typically look at the following factors:
- Accreditation: Is the facility or provider accredited by a reputable organization?
- Location: Is the facility or provider conveniently located for me?
- Hours of operation: Does the facility or provider offer hours that work for me?
- Insurance coverage: Will my insurance cover the services provided by the facility or provider?
- Patient reviews: What do other patients say about the facility or provider?
Is Hospital Compare enough?
Hospital Compare is a website created by the Centers for Medicare & Medicaid Services (CMS) that allows consumers to compare hospitals based on a variety of quality measures. Hospital Compare is a valuable tool, but it is not the only source of information that consumers should use when making healthcare decisions.
Other sources of information that consumers may want to consider include:
- Provider websites: Many providers have websites that provide information about their services, experience, and training.
- Word-of-mouth: Ask your friends, family, and coworkers for recommendations.
- Insurance company directories: Your insurance company may have a directory of providers who are in your network.
- State licensing boards: State licensing boards can provide information about whether a provider is licensed and has any disciplinary history.
Conclusion
It is important to do your research before choosing a healthcare facility or provider. There are a number of resources available to help you make informed decisions.
Sample Answer
Break-even point: The break-even point is the point in time at which the total cost of the navigation system equals the total savings generated by the system.
To calculate the break-even point, we can use the following formula:
Break-even point = Fixed costs / Monthly savings
In this case, the fixed costs are the $500 one-time fee for the installation of the navigation system. The monthly savings are the $35 that the business owner estimates to save each month by using the navigation system.