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.
• Save your results in the Excel spreadsheet for submission.

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.
• Make sure to follow APA guidelines for your business plan format and support your business plan with references.

case_shasta_faculty_practice_5_cost.docx

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