Health Finance and Economics

Posted by Winnie Melda on January 8th, 2019

The first alternative is acupuncture. It is an ancient process, rooted in Eastern medicine, where thin, solid needles are strategically inserted in the body, and then are carefully manipulated by the practitioner. The additional alternative is massage therapy. In this intervention, long, smooth strokes, kneading and other movements are used to focus on superficial layers of muscle. The last intervention into consideration is spinal manipulation. This is an intervention where certain areas of the spine are moved using massage, articulation, and high velocity/low amplitude thrusts.

There are certainly intangible benefits associated with each therapy with many patients report being pain-free after years of intolerable discomfort. Others reported being able to resume leisurely and work-related activities that were not possible due to the back pain before receiving complementary and alternative medical interventions. These include a reduced number of doctor visits; less reliance on pain management medications; and lower lost productive time at work. These tangible and intangible benefits are not quantified for the CEA.

Intervention Costs (FC and VC)

In deciding the therapy to recommend for funding, there are the relevant costs (fixed and variable) associated with each alternative on as per client and annual basis, as well as developed financial assumptions which were used to estimate the costs.

Fixed costs (FC) are less unchanged irrespective of the volume of clients seen. In reality, all costs will vary over time. Labor is considered a variable cost; however, in healthcare, we typically consider labor a semi-fixed cost or FC.

Financial Assumptions

It was assumed that the pain management clinic, which will incorporate the chosen CAM alternative into their existing services, will have 150 clients, for the first year of operation, an appropriate for this new service. It was also assumed the provider will be contracted with the hospital and will be expected to dedicate a total of 10 hours per week at the facility providing care to clients. It includes time to evaluate moreover treat the clients but also offers ample time for charting other necessary paperwork moreover. It is additionally assumed the provider will only be available 50 weeks per year allowing two weeks for rest (vacation).  It was assumed that each alternative would routinely provide appropriate patient education materials for their clients and that this cost will vary based on the market value of these collaterals.

Completing the CEA

Based on labor research and input from Human Resources, you were able to determine that an experienced, doctor prepared, licensed acupuncturist will cost per hour; an experienced, certified massage therapist with cost per hour; and an experienced, licensed Chiropractor, with a Ph.D., will cost 5 per hour. The clerical worker is paid .00 per hour and is benefited, so this amounts to an additional 10% to the hourly rate for an adjusted hourly compensation of .10. For the spinal manipulation alternative, there are additional labor costs, which needed to be taken into consideration. The X-ray technician who will be needed to take the radiographs of the clients’ back will cost per hour plus an additional 10% for benefits which will come to an adjusted hourly rate of .30.    

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in online nursing papers if you need a similar paper you can place your order from medical essay writing service online.