Health Care Promotion Budget Essay

Pages: 5 (2458 words)  ·  Style: APA  ·  Bibliography Sources: 5  ·  File: .docx  ·  Level: Master's  ·  Topic: Healthcare

Bicycle Helmets Reduce Social Cost

Medical Budgeting

This program addresses cost to the public from bicyclists who crash without a helmet on. While the statistical probability of such costs and the benefits of wearing bicycle helmets are a matter of heated debate across the world, what is perfectly clear and tangible are the costs to the public of treating bicycle riders of all ages who experience trauma, and sometimes death, because of accidents that could perhaps have been prevented or mitigated by wearing a helmet. This cost is very real and drives up mandatory insurance cost for all medical consumers especially if those cyclists can not afford to carry private insurance for the part of the costs not covered under national insurance. The entire health care system must absorb this uninsured, "indigent" cost, so uninsured cyclists not wearing helmets who suffer traumatic or catastrophic injury is a social problem all consumers have an interest in.

Download full Download Microsoft Word File
paper NOW!
On the other hand, there is also a wide body of literature demonstrating the public health savings from reducing and avoiding obesity (Rahman, Cushing and Jackson, 2011, p. 49), and that cycling is a valuable tool in preventing this public health cost. We want to encourage cycling, but we also want to try to reduce human and social cost from cycling accidents. Without claiming that helmet use will solve cycling crashes altogether, reducing the cost of cycling accidents may be possible by investing in helmets, especially for those who cannot afford private insurance beyond the national policy. This program investigates the costs and benefits from distributing helmets for children and seniors who cannot afford private coverage beyond the national insurance, through their doctors.

TOPIC: Essay on Health Care Promotion Budget Assignment

Children must get physical examinations to attend school. Likewise, medical practitioners are in a uniquely appropriate position to identify low-income families by their paying for health coverage out of pocket. On this same rationale, these consumers will be least likely to be able to pay the expensive emergency cost of a traumatic or catastrophic cycling injury, at the same time they are the most likely to choose this inexpensive method of transportation. Even if these cyclists do have private coverage beyond the mandatory minimum, the cost of emergency medical treatment from bicycle accidents raises premiums for the whole payer group more than is necessary if helmets could have reduced the injury.

We have recognized that experts continue to debate whether helmets reduce crash morbidity and mortality (Moyes, 2007, p. 487). The bottom line is that the Consumer Safety Commission has recommended their use (2006) and we will follow that recommendation. The costs from cycling accidents are real and verifiable and are borne by the entire payer pool whether the rider is insured beyond national coverage or not. We want to encourage cycling, particularly for seniors and to prevent obesity in children, but this increases the risk of accidents, and some of those accidents are so expensive that reducing their cost will provide a savings to the entire medical consumer pool whether cyclists are insured or not.

This program targets a hypothetical emergency room with one catastrophic head injury (death) per 1000 patients and 10 traumatic head injuries per 1000 patients. We estimate savings from these foregone accidents for distributing helmets at high, low and medium retail helmet prices. We also explore potential long-run savings from obesity prevented by cycling, and the earnings an adult would pay into the system over their working life if they were prevented from death or permanent disability from a childhood cycling accident. These savings take longer to materialize and are harder to estimate exactly, although they are real, measurable, and accrue to the entire society even if they are diffuse and take decades to collect. Nonetheless, prevention now will very likely deliver lower cost in the future, and also savings on the ER floor this year. The actual results will be empirical depending on how closely emergency facilities match this hypothetical benchmark, and the price of helmets at point of sale at time of purchase.

2. Basic Budget.

Table 1. Total program costs

Fixed costs


Write program

€ 150

Write education

€ 50


€ 200


€ 10


€ 10

Total Fixed Cost (TFC)

€ 210

Variable Costs

Training for nurses or docs

3 docs

7 nurses


3 Doctors

.25 hr at E50 / hr

€ 38


7 nurses

.25 hr at E30 / hr

€ 53

Number of Helmets


Doctor Hours at E50 / hr

€ 500

€ 750

€ 1,000

or Nurse Hours at E30 / hr

€ 300

€ 450

€ 600

Storage & Delivery

€ 5

€ 8

€ 10

Records & Tracking

€ 10

€ 20

€ 30

Subtotal, Controllable Costs


€ 515

€ 778

€ 1,040

or Nurses

€ 315

€ 478

€ 640

Subtotal with training


€ 553

€ 816

€ 1,078

or Nurses

€ 368

€ 531

€ 693

Low helmet price

€ 10,000

€ 20,000

€ 30,000

Mid helmet price

€ 15,000

€ 30,000

€ 45,000

High helmet price

€ 25,000

€ 50,000

€ 75,000

Total Variable Costs (TVC)


Low helmet price

€ 10,553

€ 20,816

€ 31,078

Mid helmet price

€ 15,553

€ 30,816

€ 46,078

High helmet price

€ 25,553

€ 50,816

€ 76,078

or Nurses

Low helmet price

€ 10,368

€ 20,531

€ 30,693

Mid helmet price

€ 15,368

€ 30,531

€ 45,693

High helmet price

€ 25,368

€ 50,531

€ 75,693

Total Costs


€ 210

€ 210

€ 210



Low helmet price

€ 10,763

€ 21,026

€ 31,288

Mid helmet price

€ 15,763

€ 31,026

€ 46,288

High helmet price

€ 25,763

€ 51,026

€ 76,288

or Nurses

Low helmet price

€ 10,578

€ 20,741

€ 30,903

Mid helmet price

€ 15,578

€ 30,741

€ 45,903

High helmet price

€ 25,578

€ 50,741

€ 75,903

a. Fixed or 'sunk' costs are costs of training and administration invested independently of the number of helmets that actually hit the street. There will be a cost in the central health authority writing the procedures for purchase, distribution and fitting for the helmets in individual doctors' offices and clinics. Likewise training materials for the doctors and nurses will have to be published and distributed so health practitioners can educate families as to the helmets' appropriate use, which is critical to achieving the potential savings (Blake, Velikonja, Pepper, Jilderda and Georgiou, 2008, p. 502). These sunk costs will be effectively the same because economies of scale means enough training literature will be purchased to last a three-year trial period from the outset. Fixed costs to write the policy and educational materials for this program are not determined by the number of helmets issued but would be the same if one helmet were issued, as they would be for a thousand helmets.

b. Variable expenses depend on a number of factors that can be controlled or not. Distributing helmets through the health care sector can be done either by the doctors themselves, or by the nurses after the doctor's recommendation. These costs will be different because of the difference in doctors' and nurses' earnings. While it only takes maybe half a minute for a doctor's verbal recommendation, it takes perhaps fifteen minutes maximum for a nurse or doctor to educate the consumer in the helmet's proper use. In order to do that, the practitioner must therefore be trained first, and the cost of this training will also be different because of the earnings differential. Finally the price of helmets on the market will change over time, and while the state can likely achieve volume discounts compared to each family purchasing helmets on the market themselves (which they likely would not if they cannot afford private medical insurance, it is assumed), even those contract prices will fluctuate from supply and demand forces affecting the entire marketplace. These volume purchases will require storage and shipping that will vary depending on the volume of inventory.

c. The first controllable expense is how many helmets to purchase, even if their market price is set by macroeconomic supply, demand, inflation and exchange rates. This budget explores costs for high, low and mid-range helmet price, for one, two or three-thousand helmets distributed per year. The second controllable cost is whether the doctors themselves or the nurses should educate families in the helmet's proper use. While doctors earn more than nurses and we have more nurses on staff than we do doctors, doctors may in fact cost less if they can educate consumers within the context of an existing visit, but nurses have to stop performing other work in order to train families in the helmets' proper application. This budget perhaps overestimates these nurse costs on purpose, so that the result will be a savings rather than a cost overrun. Since every ER is different, all of these costs are estimated averages at this point and real results will be empirical. The choice of program scale and doctor vs. nurse administration determine labor… [END OF PREVIEW] . . . READ MORE

Two Ordering Options:

Which Option Should I Choose?
1.  Download full paper (5 pages)Download Microsoft Word File

Download the perfectly formatted MS Word file!

- or -

2.  Write a NEW paper for me!✍🏻

We'll follow your exact instructions!
Chat with the writer 24/7.

Implementation of the Affordable Health Care Act in State of Kansas Term Paper

Health Care System Evolution Organizational Analysis and Continuum Essay

Healthcare System in the Netherlands Term Paper

Healthcare Reforms From 1990s Till Present Time Term Paper

Majec Health Care Marketing Plan Business Plan

View 200+ other related papers  >>

How to Cite "Health Care Promotion Budget" Essay in a Bibliography:

APA Style

Health Care Promotion Budget.  (2011, June 16).  Retrieved August 3, 2021, from

MLA Format

"Health Care Promotion Budget."  16 June 2011.  Web.  3 August 2021. <>.

Chicago Style

"Health Care Promotion Budget."  June 16, 2011.  Accessed August 3, 2021.