Healthcare Policy and Financing

Healthcare Policy & Financing

Obesity Prevention and Control Program -- Weight Watcher / Walking Group

ONE (a): Define the problem that will be addressed in this paper

A significant proportion of the American public is becoming obese. According to the Centers for Disease Control and Prevention "…more than a third (34.9%) of adults was obese in 2011-2012" (CDC). That is approximately 78 million Americans that have put themselves at risk of diabetes, deteriorating heart conditions, cancer, and other diseases related to obesity. In particular, men between the age of 40 and 59 years have a higher rate of obesity (39.4%) than other sectors of the population. A healthy program for weight loss for men in the 40-59 age bracket is being promoted by a local clinic, thanks to grants totaling $344,000 from local foundations and from the federal government.

TWO (b): Provide basic budget data that reflects the cost of the health promotion

Three Fixed Expenses -- One Year

Salaries for staff: 3 RNs for one year @ $54,000 annual salary

$162,000

Fees for space and necessary equipment

$35,600

Marketing consultant -- one year

$77,000

Three Variable Expenses -- One Year

Publicity materials to advertise the program through media and door-to-door: brochures, flyers, printing for newsletters, photocopying

$2,880.00

Budget necessary to buy the following: water bottles; T-shirts; welcome cards; sweat bands; pedometers for measuring walking distance

$5,339.00

Necessary program materials for participants: rewards cards, educational bulletins; passages from peer-reviewed empirical studies on weight issues; incentive materials; collateral marketing costs

$3,860.00

Three Controllable Expenses

Needs Assessment: personal interviews, telephone interviews, surveys conducted online; writing instruments for questionnaires; staff to conduct research and interview prospective participants

$11,000.00

Healthy foods for nutritional practices (serving 60 participants): water, fresh fruits and vegetables; safe supplements; rental of silverware, dishes; part time nutritionist services

$2,300.00

Measuring technologies for weight loss accountability: cholesterol checks, scales

$887.00

Three Unrecoverable Expenses if the Program is not Implemented

Independent marketing consultant costs

$77,000

Program publicity materials

$3,860.00

Water bottles, etc.

$5,339.00

THREE (c): Compare costs (fixed, variable, controllable costs) with benefits (cost-benefit analysis)

The total projected cost of this program is $300,266, which is less than the grants that have been made available. The program is designed to serve 92 male participants. In the twelve months that the program is projected to run, those 92 male participants are expected to be able to lose 4 to 5 pounds per month. If all 92 finish the program, the cost for each individual participant will be $3,263.76. Each participant will have lost an estimated 48 pounds over the twelve month program. Some will lose more, some will lose less. A total of over 4,416 pounds will have been shed by the participants. That adds up to an investment of $67.99 per pound lost.

FOUR (d): Does the cost-benefit analysis show that the program was worth it?