A Comparative Analysis of the Costs and Benefits of Outsourcing Vs. Insourcing Cleaning Services in a Rural Hospital in Uganda

2018 ◽  
Vol 06 (1) ◽  
pp. 9-20 ◽  
Author(s):  
Paschal N Mujasi ◽  
Zerish Z Nkosi

Background:This study estimates the net cost benefit of outsourcing cleaning services in a hospital in Uganda. The aim is to demonstrate an approach that can be applied by hospital managers using readily available data to conduct a cost benefit analysis as part of pre-sourcing evaluation.Methods:A before and after design was used to analyze, from the hospital manager’s perspective, the impact of outsourcing cleaning services on the hospital’s costs. Cost and service quality data was collected for the pre- and post- outsourcing period. Net costs of outsourcing were determined using a total cost pre- and post-out-sourcing approach. Benefits were monetized by comparing the costs of outsourcing with the theoretical in-sourcing costs that would be required to achieve the same quality as outsourced cleaning services. The theoretical in-sourcing costs were estimated by weighting the actual insourcing costs by a quality factor based on the hospital manager’s rating of service quality pre- and post-outsourcing. The outcome measures were the net total cost and cost per square meter cleaned for a one-year period.Results:Before adjusting for quality, outsourcing cleaning services were more costly than insourcing, with an annual cost of UGX 644.35 ($ 0.25) and UGX 568.07 ($ 0.22) per square meter cleaned, respectively. After adjusting for quality, outsourcing is cost-beneficial, providing a cost saving of UGX 372.20 ($ 0.14) per square meter cleaned. Sensitivity analysis indicates that cost of the outsourcing contract and manager’s quality rating of outsourced services have the greatest impact on value for money from outsourcing. An annual contract cost above UGX 1000 ($ 0.38) per square meter cleaned makes outsourcing less beneficial, keeping all other factors constant. An average quality rating below 5 for the outsourced service makes outsourcing less beneficial cost wise.Conclusion:Outsourcing resulted in additional hospital expenditure compared to in-sourcing, but also resulted in better quality service. Adjusting for quality makes outsourcing more cost beneficial. The magnitude of the cost benefit is sensitive to the contract value and the managers’ quality rating of the outsourced services.

2019 ◽  
Vol 8 (1) ◽  
pp. 37-46
Author(s):  
N Harish

This article focused on cost-benefit analysis of contract farming. The cost benefit analysis includes total cost, total income and profit before and after contract farming of respondents. Total cost calculated without fixed cost and with fixed cost, profit also calculated with fixed cost and without fixed cost. Contract farming is beneficial to farmers after contract farming. The total cost should be considered without fixed cost.


2018 ◽  
Vol 84 (2) ◽  
pp. 254-261
Author(s):  
Alexander Rosemurgy ◽  
Jacqueline Whitaker ◽  
Kenneth Luberice ◽  
Christian Rodriguez ◽  
Darrell Downs ◽  
...  

Surgical Site Infections (SSI) represent an onerous burden on our health-care system. This study was undertaken to determine the impact of a protocol aimed at reducing SSIs on the frequency and cost of SSIs after abdominal surgery. Beginning in 2013, 811 patients undergoing gastrointestinal operations were prospectively followed. In 2014, we initiated a protocol to reduce SSIs. SSIs were monitored before and after protocol implementation, and differences in SSI incidence and associated costs were determined. Before protocol initiation, standardized operative preparation cost was $40.85 to $126.94 per patient depending on the results of methicillin-resistant Staphylococcus aureus screen; after protocol initiation, the cost was $43.85 per patient, saving up to $83.09 per patient. With the protocol in place, SSI rate was reduced from 4.9 to 3.4 per cent (13 of 379) representing a potential prevention of eight infections that would have cost payers $166,280 ($20,785 per infection). Notably, the SSI rate after pancreatectomy was reduced by 63 per cent ( P = 0.04). With preparation and diligence, SSI rate can be meaningfully reduced and potential cost savings can be achieved. In particular, SSI rate reduction for major abdominal operations and especially pancreatic resections can be achieved. A protocol to reduce SSI is a “win-win” for all stakeholders and should be encouraged with thoughtful and active participation from all hospital disciplines.


2020 ◽  
Author(s):  
Chun-Yan HUANG ◽  
Shan-Ying Zhang ◽  
Zhu-Yun CHEN ◽  
Han-Guo XIE ◽  
Rong OUYANG

Abstract Background: Malaria is an insect-borne infectious disease that spreads through bites from infected Anopheles mosquitos. The disease seriously endangers human health and economic development. The study focuses on Fujian Province, China, which entered the final stage of malaria elimination stage in 2005. In order to understand the costs and benefits of malaria monitoring measures during the elimination stage, the health economics of the monitoring measures should be examined. Methods: Data on the number of cases during the malaria elimination stage (2005–2019) in Fujian Province were collected and sorted. The basic economic data were obtained from the Fujian Statistical Yearbook. Based on the fundamental theories in health economics, a cost-benefit analysis was conducted based on the data. Specifically, the cost of monitoring measures during the malaria elimination stage was calculated by economic cost and compared to the benefits, which were quantified based on economic and social benefits of the monitoring measures.Results: The total cost of monitoring measures in the malaria elimination stage was estimated at 607,878,783.36 yuan (USD 87,534,544.80). The components of the total cost were: case detection and treatment, which accounted for 66.62% of costs, health education with 13.31%, epidemic monitoring, 10.05%, supervision and assessment, 5.15%, and training and meetings took 4.87%. The total benefit of the monitoring measures in the malaria elimination stage was valued at about 116,123,417,911.81 yuan (USD 16,721,772,179.30). Direct economic benefit accounted for 22.61% of the total, while the social benefit was 77.39%. The cost-benefit analysis of the malaria elimination stage showed that the net benefit of monitoring measures was about 115,515,539,128.45 yuan (USD 16,634,237,634.50) and the benefit-cost ratio was 191.03. The monitoring cost for residents was 1.08 yuan (USD 0.16) per capita, and the benefit for residents was 206.12 yuan (USD 29.68) per capita. Conclusions: The monitoring measures conducted in the malaria elimination stage are a highly cost-effective intervention for reducing the negative impact of malaria in Fujian Province. Over the past 15 years, malaria control work has achieved excellent economic and social benefits in Fujian and the work should continue. The framework and results of this study conform to the principles of health economics and have a reference value for current malaria monitoring practices.


Atmosphere ◽  
2020 ◽  
Vol 11 (7) ◽  
pp. 686 ◽  
Author(s):  
Terje Grøntoft

This work reports marginal damage costs to façades due to air pollution exposure estimated “bottom up,” for Norway and Oslo (Norway) by the use of exposure response functions (ERFs) and impact pathway analysis from the emission to the deteriorating impact. The aim of the work was to supply cost estimates that could be compared with reported damage costs to health, agriculture, and ecosystems, and that could be used in cost-benefit analysis by environmental authorities. The marginal damage costs for cleaning, repair, and in total (cleaning + repair) were found to be, in Norway: eight, two, and 10, respectively, and for a traffic situation in Oslo: 50 (77), 50 (28), and 100 (105), (×/÷ 2.5) Euro/kg emission of PM10, SO2, and NO2 in total. For Oslo, the values represent a recorded façade materials inventory for 17–18th century buildings, and in the brackets the same façade inventory as for Norway. In total, 5–10% of the marginal damage cost was found to be due to NO2. The total marginal cost was found to be shared about equally between the impact of PM10 and SO2 in Norway (50 and 42% of the impact) and for the 17–18th century buildings in Oslo (45% and 49% of the impact), but for a similar façade materials inventory in Oslo as Norway, the total marginal cost due to PM10 was about two-thirds and that due to SO2 about one-third of the total, with about 5% of the cost still being due to NO2. The division of the costs between the separate pollutant influences on the cleaning and repair was, however, found to be significantly different in Norway and Oslo. In Norway, about 60% of the marginal cleaning cost was found to be due to PM10, 30% due to SO2, and 10% due to NO2. In Oslo, about 85% of the marginal cleaning costs were found to be due to PM10, 10% due to SO2, and 5% due to NO2. For the marginal repair cost, the opposite situation was found, in both Norway and Oslo, with 80–90% of the cost being due to SO2, 5–10% being due to PM10, and 5–10% due to NO2. As other factors than air pollution deteriorates façades and influences maintenance decisions, the expenses that can be attributed to the air pollution could be significantly lower.


2004 ◽  
Vol 44 (11) ◽  
pp. 1079 ◽  
Author(s):  
M. D. Rickard

The Australian Code of Practice for the Care and Use of Animals for Scientific Purposes requires Animal Ethics Committees to assess the merits of any research proposal involving the use of sentient animals. As part of that assessment they should make a judgment as to whether or not the costs to the welfare of the experimental animals are outweighed by the benefits of the predicted experimental outcome (i.e. conduct a cost–benefit analysis). This paper describes one approach that has been proposed to assist Animal Ethics Committees to take all factors into account when making this judgment. When agricultural animals are used in research the potential benefits are usually measured in terms of improved health and welfare or increased productivity when the research outcomes are applied to other animals reared in agricultural enterprises. When the aim of a project is to improve the health and welfare of the animals (i.e. ‘animal benefit’), the benefits are usually obvious and counting the cost is straightforward even if the impact on the animals under experimentation is quite extreme (e.g. death as an unavoidable endpoint in a vaccination experiment). Where the benefits accrue solely in terms of increased productivity or economic gain (i.e. ‘human benefit’), then balancing the costs and the benefits can be more problematical because people’s personal beliefs and their orientation towards animal welfare influence their assessment. Economists indicate that it is not increased productivity per se that generates value but consumption. Therefore, consumer perceptions of any adverse impact that gains in productivity have on the welfare of farmed animals can play a significant role in determining the ultimate benefit (value) of a particular piece of research with the sole aim to increase production and economic gain. This paper will explore some postulated relationships between productivity and animal welfare which could influence consumer preferences and hence the cost–benefit analysis.


Author(s):  
Maree R. Lake ◽  
Luis Ferreira ◽  
Martin H. Murray

A simulation model predicts the condition of a section of timber-sleepered railway track, including the clustering patterns of the defective sleepers and the cost of replacement under a given strategy. These results are used to perform a cost-benefit analysis of the different possible strategies for the replacement. For the simulation model, it is assumed that the life of a timber sleeper is represented by the Weibull distribution. User-controlled inputs include the length of track and the number of years to be simulated. Results generated from the model include the percentage of defective sleepers, the average life remaining, the number of clusters of various sizes, the number of sleepers replaced, and the total cost of the strategy. Investigation was conducted into the length of track that should be simulated. The length depends on the required reliability of the model. The simulated replacement strategies are compared on the basis of cost and resulting track condition.


2015 ◽  
Vol 2 (1) ◽  
pp. 1-24
Author(s):  
Christos Kalogeropoulos ◽  
Eleftheria Missou ◽  
Nikolaos Elias Pavlis ◽  
Dimitris Psychoyios

The interest of present study lies on the Greenhouse Gases (GHG) that are generated throughout the supply chain. It has been proven by numerous studies that the anthropogenic activities generate GHG emissions, and actions can be undertaken to mitigate the problem, and the impact of them on the market. This study addresses the issue of the accurate calculation of the so-called Carbon Footprint of an enterprise. During their research, the authors point out the ways that enterprises could avail from it, and how Carbon Footprint influences the purchases. It is evident, though, that there is still much work to be done concerning measuring Carbon Footprint, since common guidelines and standards used are being developed in global scale. This study recommends that empirical studies need to be made in order to inquire into the cost-benefit analysis of implementing a Carbon Footprint calculation.


Author(s):  
Maria Nogal ◽  
Emilio Bastidas-Arteaga ◽  
Helena Maria dos Santos Gervásio

<p>The impact of climate change on ambient temperature and relative humidity along with the present CO2 levels are speeding the corrosion process of reinforced concrete structures. The alarming cost of the associated reduction of the service life of structures, which is estimated to cost 3% to 4% of the Gross Domestic Product (GDP) of industrialized countries, has put the spotlight on the importance of introducing the issue of climate change on the new generation of Eurocodes. Amongst the strategies to tackle the problem, design-phase measures seem not to be always cost- effective, nevertheless, measures during service-life are generally the most expensive. This paper discusses the potential strategies to be addressed by structural codes to tackle the problem of climate change-induced corrosion, considering aspects such as the cost-benefit analysis, viability, and the large uncertainty involved in climate change evolution.</p>


Author(s):  
Carmela Mady B. Manabat ◽  
Marielle C. Alejo ◽  
Loraine V. Dela Cruz. ◽  
Joseph M. Apan ◽  
Renato D. Erasquin Jr,

The study assessed the cost and benefit of electrical loading management of transformers. There is a serious occurrence of over and under loaded transformer which deeply affects the power quality or system loss and reliability of the distribution lines. Initially, the percent loading of the 27 transformers of Feeder 21 were identified using Microsoft Excel 2016. Then, the identified transformers were classified into three categories; overload (greater than 70%), under loaded (less than 40%) and normal loaded (40-70%). Through this process, three (3) solutions were identified: Solution I - change the transformer rating, Solution II – merge and transfer transformer loadsand Solution III - combine solution I and II. The three-solution used to identify the new percent loading to meet the normal percent loading (40-69%). Subsequently, the reduced Core and Copper Losses, Annual Energy Save, Savings and Benefit/Cost Ratio were computed and analyzed to determine the impact of loadingmanagement. The results show that there was an accumulated savings of Php 332,060.08 for Solution I, Php 92,043.09 for Solution II and Php 252,045.78 for Solution III. In the case of Benefit/Cost ratio it should be greater than 1 (>1) for a project to be economically feasible and justifiable; Solution I was 1.22, Solution II was 687.3 and 1.93 for Solution III. Based on the results of the study, SolutionIII was best among the three, for it has met the criteria of all transformers were all in normal loaded (40-70%) condition, and greater than 1 benefit/cost ratio.


Pomorstvo ◽  
2021 ◽  
Vol 35 (2) ◽  
pp. 256-266
Author(s):  
Andrej Mihailovic ◽  
Nexhat Kapidani ◽  
Enis Kočan ◽  
David Merino Delgado ◽  
Jari Räsänen

This paper outlines an extensive analysis of the case of Montenegro’s maritime surveillance system becoming integrated within the European Common Information Sharing Environment (CISE). Threats to secure maritime borders across Europe are ever-present and regularly demand coordinated efforts between the member states to tackle and prevent them, e.g. illegal immigration across the Mediterranean. Administration for Maritime Safety and Port Management (AMSPM) in Montenegro is a member of the ANDROMEDA EU project that seeks to facilitate deployments and demonstrations of CISE trials across the European regions, towards their endorsement readiness. AMSPM is now at the forefront of assessing and deploying the CISE components in Montenegro. It thus appropriately evaluates the operational aspects, observes the CISE implementations in some European states, formulates the impact for other national stakeholders, as well as the very prospect of the resulting augmented maritime surveillance in the country. This substantiates the content of this paper as the feasibility of the CISE deployment in Montenegro, supported by a snapshot of the cost-benefit analysis. We aspire to offer novel perspectives and insights that could be a universally useful experience to different CISE implementation initiatives, especially for countries or regions of similar smaller sizes and coastal area.


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