Economic Dynamics of Health Care Delivery Models
Name:
Institution:

Section One
A cost-benefit analysis is a method that assigns indirect and direct costs and then compares both the merits as well as the costs of a certain undertaking to determine the probability of such undertaking producing positive results from the investment that have been made ( Robert , 2006). Below is a cost benefits analysis of HIV Help-Inc. Assigning the monetary values to direct of HIV Help Inc.
Staff $0.8
Repairs $1
Office equipment $0.2
Total direct costs amounts to $2. The company cannot allocate any monetary values to indirect costs.
Expected benefits of the program
Office equipment will improve the efficiency of operations; the staff will increase productivity. The financial benefits will translate to approximately $4.
Comparing costs and benefits
Benefits $4
Costs $2
Savings $2
Decision
The project has positive returns
Section B
Cost of expansion to neighboring community (4000 residents)
Direct cost
Education $1 million
Distribution of condoms $0.5
Employing Staff $0.8
HIV testing $0.2
Provision of education materials $0.05
Counseling services $0.45
Total direct cost $3 million
Indirect cost Cost of HIV treatment $1 million
Total cost = $4 million
Cost of adding the HIV testing to at-risk individuals
Direct cost of HIV prevention among the:
Homeless person $0.5
Persons Affected by Alcohol and Substance Abuse $0.5
Suicide and Homicide Liable Persons $0.5
Persons Diagnosed With Mental Conditions $0.5
Total Direct cost = $2 million
Indirect cost
Cost of Treating HIV$ 2 million
The project will reduce the number of those vulnerable to be affected