Free Cost Benefit Analysis for Healthcare Template

Cost Benefit Analysis for Healthcare

Prepared by: [YOUR NAME]
Organization: [YOUR COMPANY NAME]
Date: December 12, 2078

I. EXECUTIVE SUMMARY

This Cost-Benefit Analysis (CBA) evaluates the feasibility and impact of implementing the Comprehensive Remote Patient Monitoring Program (CRPMP). The program aims to reduce hospital admissions and enhance patient outcomes by leveraging advanced remote monitoring technologies. Over a 5-year period, the anticipated benefits significantly outweigh the costs, with a net benefit of $18,750,000.

II. OBJECTIVES

  • Evaluate Financial Viability: Compare the $12,500,000 program costs to projected benefits of $31,250,000.

  • Identify Key Stakeholders: Beneficiaries include patients, hospitals, and insurers, with costs borne primarily by healthcare providers.

  • Assess Long-Term Impact: Determine alignment with the national goal of reducing preventable hospitalizations by 50% by 2083.

III. SCOPE OF ANALYSIS

  • Time Frame: 5 years (2079–2083).

  • Population: Patients with chronic conditions, primarily heart failure and diabetes (approximately 50,000 individuals).

  • Cost Categories: Infrastructure, devices, training, and operational costs.

  • Benefit Categories: Cost savings from reduced hospital stays, medication adherence, and improved workforce productivity.

IV. METHODOLOGY

A. Cost Identification

  • Direct Costs:

    • Infrastructure: $2,500,000.

    • Medical devices (wearable sensors): $3,000,000.

    • Personnel salaries (program staff): $4,000,000.

  • Indirect Costs:

    • Training: $1,000,000.

    • Operational adjustments: $2,000,000.

B. Benefit Identification

  • Quantifiable Benefits:

    • Reduced hospital admissions: $12,000,000.

    • Decreased length of hospital stays: $10,000,000.

    • Productivity gains (patients returning to work faster): $9,250,000.

  • Qualitative Benefits:

    • Improved patient quality of life.

    • Enhanced care coordination.

    • Alignment with governmental health improvement goals.

C. Valuation Techniques

  • Discount Rate: 5% applied to future costs and benefits.

  • Sensitivity Analysis: Conducted to assess variations in adoption rates and technology costs.

V. COST ANALYSIS

A. Infrastructure

  • Year 1: $500,000

  • Year 2: $500,000

  • Year 3: $500,000

  • Year 4: $500,000

  • Year 5: $500,000

Total: $2,500,000

B. Devices

  • Year 1: $750,000

  • Year 2: $750,000

  • Year 3: $750,000

  • Year 4: $750,000

  • Year 5: $750,000

Total: $3,750,000

C. Personnel

  • Year 1: $800,000

  • Year 2: $800,000

  • Year 3: $800,000

  • Year 4: $800,000

  • Year 5: $800,000

Total: $4,000,000

D. Training and Operations

  • Year 1: $600,000

  • Year 2: $600,000

  • Year 3: $600,000

  • Year 4: $600,000

  • Year 5: $600,000

Total: $3,000,000

VI. BENEFIT ANALYSIS

A. Reduction in Admissions

  • Year 1: $2,000,000

  • Year 2: $2,500,000

  • Year 3: $3,000,000

  • Year 4: $3,500,000

  • Year 5: $4,000,000

Total: $15,000,000

B. Savings in Drug Costs

  • Year 1: $1,500,000

  • Year 2: $1,500,000

  • Year 3: $1,500,000

  • Year 4: $1,500,000

  • Year 5: $1,500,000

Total: $7,500,000

C. Productivity Gains

  • Year 1: $1,000,000

  • Year 2: $1,250,000

  • Year 3: $1,500,000

  • Year 4: $2,000,000

  • Year 5: $2,500,000

Total: $8,250,000

VII. NET BENEFIT ANALYSIS

Category

Total Costs

Total Benefits

Net Benefit

Financial Metrics

$12,500,000

$31,250,000

$18,750,000

Benefit-Cost Ratio (BCR)

1:2.5

-

-

VIII. SENSITIVITY ANALYSIS

  • Scenario A: A 10% increase in program costs reduces the net benefit to $17,000,000.

  • Scenario B: A 10% decrease in benefits reduces the net benefit to $15,625,000.

  • Scenario C: Adjusting the discount rate to 7% lowers the present value of benefits by $1,250,000.

IX. CONCLUSION AND RECOMMENDATIONS

  • Summary: The Comprehensive Remote Patient Monitoring Program delivers a Benefit-Cost Ratio of 1:2.5 and generates significant financial and qualitative advantages.

  • Recommendations: Proceed with implementation starting in January 2079, ensuring regular evaluations and adjustments based on real-world data.

X. APPENDICES

  • Appendix A: Detailed Cost Tables.

  • Appendix B: Detailed Benefit Tables.

  • Appendix C: Assumptions and Calculation Methods.

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