The dominant hospital system in a market is considering various options to reduc

Question

The dominant hospital system in a market is considering various options to reduce the number of emergency room visits. A local health care consultant proposed that the hospital distribute a "Healthy Living and Preparedness" manual providing basic information on improving health and how to avoid unnecessary emergency room visits. The consultant explains that the manual has met with substantial success in a neighboring municipality. The program would rely on the hospital's volunteers both to distribute the manuals to community groups and train those groups on the manual. The volunteers would be trained by hospital employees. Suppose you are assigned the task of conducting an economic evaluation. The evaluation would compare the efficiency of the wellness manual with the alternative of doing nothing.

A.) What type of information do you need before deciding whether an economic evaluation of the wellness manual makes sense?

B.) Should your evaluation be a cost-benefit or a cost-effectiveness analysis? Why?

C.) Propose an indicator that can be used to capture the outcome of the program.

D.) Whose costs and what costs of the net program should be included in the analysis?

Explanation / Answer

A) Before doing the economic evaluation one has to collect the pre-manual distribution data of emergency room visits and post- manual distribution data of emergency room visits. I have to predecide the factors for considering the visit necessary or unnecessary. Other demographic or sociatel factors which might be in play at the time of the program which may have significantly effected the results.

B) Evaluation should be cost-effictveness analysis because cost-benefit analysis only measures the monetary aspect and does not considers the intangibal benefits f the program.

C) The best indicator to capture the outcome of the program can be count of number of patients (visiting in emergency that could had been avoided if people were careful) before and after the program.

D) The cost of running the complete program and oppertunity cost beared by the volunteers and the cost,

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