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Consider the following scenario:
You have been in your new home for several years now and have used your emergency
repair plan one time. While it is nice having the repair plan, you are considering
cancelling the coverage, as it seems like you spend more on the program than you would
have spent for the repair your home needed. Now that you have been living in your home
and have become familiar with the quality and construction, as well as the quirks of your
appliances, is your decision to keep or cancel the coverage based on different
At the time of purchase, you might have looked at what you expected things to cost in
relation to the age or condition of you home. Now, you have actual repair costs and
expenditures for the plan to use in your decision. You have compared other plans to yours
and find that yours is on par with others. A straight numbers comparison shows you spent
much more on the plan than you have used to date. However, can you put a monetary
value on the comfort having the program has brought you, especially when financial
challenges arose in other areas, like a health emergency or your child needing braces.
As a leader in healthcare, you might be asked to evaluate healthcare programs and services in use
where you work. There are several techniques that are used to assess the benefits of a program
for both the patient and the hospital or doctor’s office. This week, you will learn about the
various techniques used to evaluate health programs in regard to cost effectiveness. You will also
perform a cost effectiveness analysis (CEA) for participating in preventive health services.
Learning Objectives
Students will:
Analyze health program presentations
Analyze cost-effectiveness of screening and preventive services for leading health indicators
Explain the benefits of participating in preventive services for leading health indicators
Analyze population programs for longevity of population health outcomes
Analyze the impact of preventive services on healthcare economics
Learning Resources
Required Readings
Penner, S.J. (2017). Economics and financial management for nurses and nurse leaders (3rd
ed.). New York, NY: Springer Publishing.
• Chapter 9, “Comparing Costs and Benefits” (pp. 217-242)
Ashcroft, R. E. (2005). Quality of life as the basis of health care resource allocation: A
philosopher’s perspective on QALYs. Virtual Mentor, 7(2), 195–
199. doi:10.1001/virtualmentor.2005.7.2.pfor4-0502
HealthyPeople.gov. (2018). Who’s leading the leading health indicators? [Series index].
Retrieved from https://www.healthypeople.gov/2020/LHI/whosleading.aspx
Kinding, D., & Soddart, G. (2003). What is population health? American Journal of Public
Health, 93(3), 380–383. doi:10.2105/AJPH.93.3.380
Note: This article is seminal to the field.
ReadabilityFormulas.com. (2018). The SMOG readability formula, a simple measure of
gobbledygook. Retrieved from http://www.readabilityformulas.com/smog-readabilityformula.php
• Instructions: Click on the SMOG Readability Calculator link.
Community Preventive Services Task Force (CPSTF). (n.d.). The community guide. Retrieved
December 17, 2018, from https://www.thecommunityguide.org/
U.S. Department of Health and Human Services. (2014). Healthy People 2020: Leading health
indicators: Progress update. Retrieved from
Vizient. (2017). The hospital’s clear path to improving care delivery. Retrieved from
Walden University Library. (2018). Home page. Retrieved
from https://academicguides.waldenu.edu/library
Document: Cost-Effectiveness Analysis Table (Word document)
Required Media
NPR (Producer). (2008, June 8). Can “blue zones” help turn back the biological clock?
[Multimedia file]. Retrieved
from https://www.npr.org/templates/story/story.php?storyId=91285403&from=mobile
Assignment: Using Cost-Effectiveness
Analysis for Preventive Services of Leading
Health Indicators
Population health includes health determinants of specific groups, which can be a
country, a community, or a more specific group, such as the elderly, prisoners, or
children, to name a few. Population health is not public health. Population health has
been defined as a study of factors that influence the health of a group over a lifetime by
observing patterns and implementing health policy to improve the health of that
population. Consider the following scenario:
You are a population health professional who is working on a leading health
indicator (LHI) to increase screening for hypertension, diabetes, rectal cancer, or
child immunizations. You would like to develop an educational handout for
patients and their families to increase the likelihood that these patients will engage
in preventive health options to address this LHI. However, before you can develop
an educational handout that will be used in physician’s offices, urgent care
centers, and free healthcare clinics, you will have to conduct a brief costeffectiveness analysis (CEA) to determine the costs associated with participating
in preventive health alternatives or foregoing participation in such efforts.
To Prepare:
Review the Learning Resources for this week, including the presentation by Joanne
Silberner on Blue Zones (National Public Radio).
Access and review the Healthy People 2020 Progress Report by U.S. Department of
Health and Human Services (2014) provided in this week’s Learning Resources.
Select one of the following LHIs to focus on for your Assignment (LHIs are found under
the Clinical Preventive Services tab):
Rectal Cancer
Find one population health program that has been successful in addressing the LHI you
selected. You can find a successful program at any of the following websites (found in
the Learning Resources):
HealthyPeople.gov website
The Community Guide website
Walden Library
Review the HealthyPeople.gov (2018) website provided in this week’s Learning
Resources and select one population health program that has been successful in
addressing the LHI you selected.
Review the cost-effectiveness analysis (CEA) table provided in this week’s Learning
Resources and consider how costs might be minimized through the implementation of
preventive efforts aimed at addressing the LHI you selected.
Reflect on how you would design an educational handout to educate patients and their
families on the effectiveness benefits of participating in screening/preventive care for
the LHI you selected.
The Assignment: (1– to 2– page Educational Handout and a 1– to 2– page
Narrative Summary)
You are a population health specialist who has researched a special population and
needs to create an educational handout to make sure patients, who fit into the special
population, understand the importance of managing or preventing their chronic illness.
Consider the economic and social implications of helping people get healthy and
maintain their health and avoid hospital readmissions. Connecting patients to support
groups, services in their community, or other programs will improve health.
Part I. Educational Handout (1 – 2 pages)
Create a 1– to 2– page patient education handout for the LHI you selected above. This
handout will be patient-focused and should be written at a sixth-grade level. (Note:
There is a SMOG analysis tool in the Learning Resources that can help you to
determine the readability of your handout.)
The goal is to identify and manage or prevent chronic illness. You can use pictures,
graphs, charts, etc. to make your handout eye catching and get the point across.
Be sure your handout is easy to read and can be understood by the general population.
If you use images, make sure these are not copyrighted and are culturally diverse and
Be sure to cite and reference any supporting documentation at the end of your
The following are examples of patient education handouts that you can use to guide
Centers for Disease Control and Prevention. (2018a). Vaccines: Know what you need. Retrieved
from https://www.cdc.gov/vaccines/hcp/adults/downloads/fs-vaccines-need.pdf
Centers for Disease Control and Prevention. (2017). Colorectal cancer screening. Retrieved
from https://www.cdc.gov/cancer/colorectal/pdf/basic_fs_eng_color.pdf
Part II: Narrative Summary (1 – 2 pages)
Identify and briefly describe the population health program that you selected. Include a
proper reference to the article.
Explain whether the LHI program gained success within the population.
Describe the key measures used to determine the success of the LHI.
Explain whether you would apply the concept of Quality-Adjusted Life Year (QALY) to
the LHI you selected? Be specific, and provide examples.
Explain whether the population health program has the potential for longevity to
influence the health of the population most impacted by the LHI you selected.
Explain the impact of preventive services on healthcare economics for the LHI you
selected. Be sure to cite appropriate resources for LHI you selected, and adhere to APA
formatting guidelines.
Cost Effectiveness Analysis Table
Screening &
Qualitative Results
Patient Successes Patient
Results in
Pricing Information for the CEA
Doctor office visit
Self pay no insurance
Co-pay with insurance
Co-pay Medicare
Co-pay Medicaid
Third Party Payor pays
Misc costs
Chemotherapy Cost
Hospital per Day charge
Total Child Immunizatinon cost
Average cost of Stroke Care

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