Accession Number : ADA314104

Title :   Level II Neonatal Intensive Care Unit Cost Avoidance in the Colorado Springs Catchment Area.

Descriptive Note : Final rept. Jul 94-Jul 95,

Corporate Author : ACADEMY OF HEALTH SCIENCES (ARMY) FORT SAM HOUSTON TX HEALTH CARE ADMINISTRATI ON

Personal Author(s) : Ellenberger, Richard S.

PDF Url : ADA314104

Report Date : AUG 1995

Pagination or Media Count : 149

Abstract : Due to increased utilization of neonatal intensive care services in the Colorado Springs catchment, the elimination of Fitzsimons Army Medical Center's neonatal intensive care unit (NICU), a monopoly market for NICU services in Colorado Springs, and the high altitude effects on pregnancy encountered in Colorado, local CHAMPUS expenditures for NICU services exceeded $2 million in 1994. The purpose of this research was to determine if Evans Army Community Hospital should enter the market for Level II NICU services in Colorado Springs. A make or buy project evaluation was conducted by discounted cash flow analysis over a six year term. Profitability measures were adjusted for capital risk using 256 spreadsheet simulations to conduct a sensitivity analysis for optimum, minimum, and most likely scenarios. A subjective consideration of the project's social value was accomplished by Delphi panel using a qualitative analysis of both options. The project's expected net present value under the most likely case was $5,348, with a 0.48 probability of break even cash flow. The qualitative analysis favored the make option. Based on marginal profitability of the cash flow analysis, demographic changes at Fort Carson in force structure, budget constraints, health services manpower reductions, and business strategy preparatory to TRICARE the project was not recommended for implementation.

Descriptors :   *MARKET RESEARCH, *COST EFFECTIVENESS, *COST ANALYSIS, *PLANNING PROGRAMMING BUDGETING, ARMY FACILITIES, THESES, REDUCTION, MEDICAL SERVICES, HOSPITALS, QUALITATIVE ANALYSIS, MEDICAL PERSONNEL, PREGNANCY, TOTAL QUALITY MANAGEMENT, ARMY BUDGETS, PROFITS, FINANCE, PEDIATRICS, INFANTS, OBSTETRICS.

Subject Categories : Economics and Cost Analysis
      Personnel Management and Labor Relations
      Medicine and Medical Research
      Military Forces and Organizations

Distribution Statement : APPROVED FOR PUBLIC RELEASE