Cost-Benefit Analysis Essay Example | Topics and Well Written Essays - 500 words

Cost-Benefit Analysis - Essay Example strategy differs from enhancing energy efficiency when constructing new hospital buildings and, as a result, it is critical that the hospital weighs up the costs and benefits of the strategy exactly. In this case, amortization time or the time needed for this strategic investment to be paid off averaged at approximately twenty years, while the new fittings should be paid off within fifteen years. The specific challenge in undertaking this strategic investment is to increase the hospital’s energy efficiency, while also taking care not to incur high financial costs because the hospital is running at a $1,809,618 loss (ahd.com, 2015). The budget for this strategic investment to enhance energy efficiency is shown below; Well-executed and planned retrofits as identified above can lead to significantly more value in comparison to the savings on energy costs. Indeed, not only does this strategic investment enhance the efficiency of some expensive equipment at Ashe Memorial Hospital, but it also increases the life-time of these equipments (Pagliarini et al., 2012). Retrofits that introduce daylight into rooms used by the patients through roof renovations, as well as those that improve the hospital’s air quality and reduce the need for air conditioning will deliver increased value in quality of patient care and in terms of costs. For instance, improved air quality by redesigning the windows could reduce airborne illness transmission at Ashe Memorial Hospital, in turn reducing hospital costs. Moreover, Pagliarini et al. (2012) notes that patients in rooms with daylight have lower length of stay at hospitals than those with artificial lighting. A well-ventilated and attractively day-lit Ashe Memorial Hospital that advertises its lower-carbon footprint could also work to attract skilled nurses and doctors who want a more productive and comfortable workplace (Pagliarini et al., 2012), which is important for a rural hospital that has trouble attracting enough healthcare