How to do a cost benefit analysis excel

Current Year (CY) CY +1 CY +2 CY +3 CY +4 Costs Total Costs (Future Value) Total Costs (Present Value) $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - Benefits Total Benefits (Future Value) Total Benefits (Present Value) Present Value Discout Rate 2% CY +5 Cost Benefit Analysis Total PV Benefits $ Total PV Costs $ NET BENEFIT 0,00 $ $ - $ - $ $ - $ - You are the CFO of a large academic medical center and your organization is in the process of implementing a new electronic health record (EHR) and practice management (PM) system. Several of your providers are complaining about conversion to the new EHR and PM system and are being resistant to change. Review "Perspective 13.5: Financial Benefits From IT," on page 616 of your Financial Management of Health Care Organizations text by Zelman, McCue, Glick, and Thomas. This section discusses the benefits realized by Banner Health System when they invested in IT. Conduct additional research on the benefits of IT and develop a presentation that you will give to all internal stakeholders to convince them to embrace the conversion. Complete the following: • Apply a cost-benefit analysis to consider potential profit and risks to your organization based on the experience of Banner Health System. Use Plowman's spreadsheet "Cost Benefit Analysis Template" to display your data. PERSPECTIVE 13.5 FINANCIAL BENEFITS FROM IT Investment in IT is considered a driving factor in improving patient care; the critical question asked by CEOs, CFOs, and board members is whether hospitals achieve a financial return from their IT investments. The inability to measure and account for financial benefits from IT investments has led some hospital administrators to avoid making these types of capital investments that can provide more efficient, higherquality care and also improve patient and provider satisfaction. One health care system that decided to make this investment is Banner Health, which implemented an IT system at its newest hospital, Banner Estrella Medical Center in Phoenix, Arizona. By investing in IT and receiving input from physicians, pharmacists, nurses, informaticists, and other clinicians, the hospital was able to design new work flows and establish evidence-based order sets. The improved IT design and standard order sets were implemented across departmental functions such as care management, clinical documentation, computerized provider order entry (CPOE), nursing order management, and medication administration and scheduling, and also across processes in departments such as health information management, emergency services, obstetrics, pediatrics, pharmacy, and surgery. This IT investment resulted in a $2.6 million cost savings from greater retention of nurses, which lowered the costs of recruiting, hiring, and training new nurses, and from reducing accounts receivable billing by one day, which resulted in faster payment; decreasing the incidence of adverse drug events, length of stay, and pharmacy costs; decreasing overtime expenses for nurses as a result of improving their efficiency in charting and shifting tasks; and reducing forms costs because information was digitized. Source: Adapted from J. Hensing, D. Dahlen, M. Warden, J. V. Norman, B. C. Wilson, and S. Kisiel, Measuring the benefits of IT-enabled care transformation, Healthcare Financial Management, 2008;62(2):74–80. (Zelman 616) Zelman, William N., Michael McCue, Noah Glick, Marci Thomas. Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications, 4th Edition. Jossey-Bass, 2013-12-30. VitalBook file. Additional clarification You are not provided with all the numbers. Therefore, you have to be creative in this assignment. After you review the Perspective 13.5, Financial Benefits from IT, on page 616 of your Financial Management of Health Care Organizations text by Zelman, McCue, Glick, and Thomas and section you will conduct further research. You may use any data or materials (i.e., textbook, the Internet, and library to help complete the task. You do not have to use the Excel sheet provided. You can be a bit creative here, and I will accept any work that provides narration on the numbers or concepts behind the task. If you do not use the Excel, sheet makes it easier on yourself, and I would recommend that you use tables (review chapter 6 and towards the end is appendix b: future and present value tables (a lot easier to calculate) or you may use any PV or FV Calculator online. For example, let us say you wanted to know the future value of $1 (single investment today) worth in 5 years at a given interest rate of 2%. If I look at Table B.1 (page 292) future value factor of $1. I notice that in 5 years at a given interest rate of 2%, the dollar will worth at this time (the nu1.1041.