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Econ 317 assignment 3

  1. Set the decision problem

    1. Perspective: We estimate costs from an operator's perspective. For customers, the service can be called by phone, and the cost is negligible.

    2. Time horizon:3 years

    3. Target population:17155, half of the elderly people aged over 75 in Victoria of BC, because the public health care coverage rate is around 50%.

    4. Setting: The services will be done in users' own residences in the City of Victoria. They can search and find the specific care they need in the community centers within the region.

  2. Identify all relevant resources

    1. Capital: a room in the community centers

    2. Labor: nurse time, volunteer time, educator time, and house worker time

    3. Energy: electricity for lighting and office machines, natural gas for heating

    4. Material: nursing material, computer, phones

    5. Service: transportation to the clients’ home

  3. Measure resources


Table 1

Parameter

Resource

Volume

Source

home nursing care

nursing time

797760

home care reporting system

transportation

540

Literature/Product Monograph

nursing material

2190

nursing education resource study guide

nursing care

nursing time

930384

senior statistics by Canada government

transportation

8307

Literature/Product Monograph

nursing material

15506

nursing education resource study guide

office support

volunteen time

4380

Literature/Product Monograph

educator time

32

Literature/Product Monograph

electricity

365

Literature/Product Monograph

gas

90

Literature/Product Monograph

computer

Literature/Product Monograph

phone

Literature/Product Monograph

room

Literature/Product Monograph


    1. Home care:

According to the home care reporting system, there are 26612 people in BC needing long-term home care every year. Assuming the home care rate (home care population / total population), there are 2217 people in Victoria needing long-term home care. Assuming half of them are covered by public health care (the public health care coverage rate is nearly 50%), and half of the rest will hire home care service (home care reporting system data user guide, 2017-2018), so there will be 540 people using home care service. The average service is 6 months (home care system data, 2018), so that the total service time for 540 people is 797760 hours.

For nursing material, according to the nursing education resource study guide (2018), one nursing material set can use for 30 times. In such case, we assume home care nurse needs nursing material set once every 3 days, then we need 2190 nursing material set one year.

540*365/(3*30)=2190


    1. Nursing care:

According to the senior statistics of Canada government, the elder needs nursing care once a week, and consulting service 3 month a time. for every time, so that it’s 56 times for one year. We assume 2 hours service. Our target population is 17155 and 540 of them plan to have home care, so that the remained 16615 people need nursing care. Assuming that half of them are covered by other private institutions, then the remained 8307 people will need 930384 nursing care hours one year.

For nursing material, according to the nursing education resource study guide (2018), one nursing material set can use for 30 times. In such case, we need 15506 nursing material set one year for the 8307 people.

8307*56/30=15506

    1. Office support

For support the system, we need one computer, 2 phones, and 2 working volunteers. Assuming that volunteer office staff works 6 hours a day, 365 days a year, the volunteer time is 4380 hours per year.

For educator time, we assume 2 times training one year for all staff. For each training, it lasts for 2 days, 16 hours.

For energy, we use electricity for lighting, and office machines every day. We use gas for 3 months, 90 days.



  1. Table 2

    Parameter

    Resource

    Unit of measure

    resource cost

    price year

    source

    home nursing care

    nursing time

    hour

    24.48

    2018

    indeed

    transportation

    time

    40

    2018

    victoria public transporatation system

    nursing material

    set

    100

    2018

    amazon

    nursing care

    nursing time

    hour

    38

    2018

    indeed

    transportation

    time

    40

    2018

    victoria public transporatation system

    nursing material

    set

    100

    2018

    amazon

    office support

    volunteer time

    hour

    2018

    red cross

    educator time

    hour

    25

    2018

    indeed

    electricity

    day

    0.1956

    2018

    BC hydro

    gas

    month

    135

    2018

    gasbuddy

    computer

    unit

    1000

    2018

    amazon

    phone

    unit

    50

    2018

    amazon

    room

    square

    2018

    community governemtn

Table 3

Parameter

Resource

Volume

Unit of measure

resource cost

Total cost per year

home nursing care

nursing time

797760

hour

24.48

19529164.8

transportation

540

time

40

21600

nursing material

2190

set

100

219000

nursing care

nursing time

930384

hour

38

35354592

transportation

8307

time

40

332280

nursing material

15506

set

100

1550600

office support

volunteer time

4380

hour

educator time

32

hour

25

800

electricity

365

day

0.1956

71.394

gas

month

135

405

computer

unit

1000

1000

phone

unit

50

100

room

square

Table 4 Time adjusted present value

Parameter

Resource

year 1

year 2

year 3

Total

method

home nursing care

nursing time

19240556.45

18956213.25

18676072.17

56872841.88

bottom up,discounted

transportation

21280.78818

20966.29377

20656.44706

62903.52901

bottom up,discounted

nursing material

215763.5468

212574.923

209433.4216

637771.8914

bottom up,discounted

nursing care

nursing time

34832110.34

34317350.09

33810197.14

102959657.6

bottom up,discounted

transportation

327369.4581

322531.4858

317765.0107

967665.9546

bottom up,discounted

nursing material

1527684.729

1505108.107

1482865.13

4515657.967

bottom up,discounted

office support

volunteer time

bottom up,discounted

educator time

788.1773399

776.5293989

765.053595

2329.760334

bottom up,discounted

electricity

70.33891626

69.29942488

68.27529545

207.9136366

bottom up,discounted

gas

399.0147783

393.1180082

387.3083825

1179.441169

bottom up,discounted

computer

985.2216749

970.6617486

956.3169937

2912.200417

bottom up,discounted

phone

98.52216749

97.06617486

95.63169937

291.2200417

bottom up,discounted

room

bottom up,discounted

Total

56167106.6

55337050.83

54519261.9

166023419.3

Reference:

Government of Canada, S. C. (2017, February 8). Census Profile, 2016 Census - Victoria [Census metropolitan area], British Columbia and British Columbia [Province]. Retrieved March 8, 2019, from https://www12.statcan.gc.ca/census-recensement/2016/dp-pd/prof/details/page.cfm?Lang=E&Geo1=CMACA&Code1=935&Geo2=PR&Code2=59&Data=Count&SearchType=Begins&SearchPR=01&B1=All&TABID=1

HCRS-external-data-users-guide-2017-2018-en-web.pdf. (n.d.). Retrieved from https://secure.cihi.ca/free_products/HCRS-external-data-users-guide-2017-2018-en-web.pdf

Home Care Nurse Salaries in Victoria, BC | Indeed.com. (n.d.). Retrieved March 8, 2019, from https://ca.indeed.com/salaries/Home-Care-Nurse-Salaries,-Victoria-BC

Home Care Reporting System Data Users Guide, 2017–2018. (2018.), 35.

Practice Nurse Salaries in Victoria, BC | Indeed.com. (2018). Retrieved March 8, 2019, from https://ca.indeed.com/salaries/practice%20nurse-Salaries,-Victoria-BC

The Ultimate Nursing Education Resource Study Guide | NRSNG. (2018.). Retrieved March 8, 2019, from https://www.nrsng.com/resources/

Residential Rates. (2018.). Retrieved March 8, 2019, from https://www.bchydro.com/accounts-billing/rates-energy-use/electricity-rates/residential-rates.html