The economic value of an investment in physiotherapy education: a net present value analysis

Rivers, George; Foo, Jonathan; Ilić, Dragan; Nicklen, Peter; Reeves, Scott; Walsh, Kieran; Maloney, Stephen

doi:10.1016/j.jphys.2015.05.015

Cited by 13 publications

(6 citation statements)

References 7 publications

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“…Cost and value research sits at the interface of educational design and workforce planning. Aside from its influence on quality health service provision and health outcomes, cost and value influences student debt, professional attrition, skills migration, and health workforce shortages (Foo, Storr, & Maloney, 2016;Rivers et al, 2015;Sá, 2014).…”

Section: Introductionmentioning

confidence: 99%

The Prato Statement on cost and value in professional and interprofessional education

Maloney

Reeves

Rivers

et al. 2016

Journal of Interprofessional Care

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Section: Introductionmentioning

confidence: 99%

The Prato Statement on cost and value in professional and interprofessional education

Maloney

Reeves

Rivers

et al. 2016

Journal of Interprofessional Care

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“…It is the basic indicator of the net present value method in project evaluation. NPV is widely used to analyze the ability of a project of making a profit in capital budgeting and investment decisions [8]. This also means NPV is a prediction of the future stream of payments based on present value calculation [9].…”

Section: Applicabilitymentioning

confidence: 99%

The Scenario Analysis for NPV and IRR in Mutually Exclusive Projects

Ren¹

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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In the real world, the project of business decision is relatively long and requires more capital investment, which leads to higher requirements for the feasibility of project investment and scientific decision-making. To improve the science of business decision-making, the application of a series of evaluation indicators and analysis methods to quantitatively analyze the feasibility of the project is a reliable measure. Among countless evaluation indexes, the dynamic indexes are usually more superior when it refers to help make comparisons and decisions between different business projects. The net present value (NPV) and internal rate of return (IRR) are the most used indexes due to their reliability, scientific and representativeness. Normally, the application of both indexes in evaluating the feasibility of an independent project leads to the same conclusion. However, in mutually exclusive projects, the use of these two indexes may result in contradictory results, this thesis aims to analyze the cause of this contradiction from the angle of theory and practice. Compare the advantages, disadvantages, and differences of both indexes. By giving the example of two mutually exclusive projects, analyze how NPV and IRR change under different discount rates, find out the connection among them. In the end, discuss the application of these indexes and ponder the defect of this finding, investigate the future development.

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“…The opposite is true for an option with negative net present value, which would represent a poor educational investment. applied the net present value approach to their exploration of the economic value of an investment in physiotherapy education in Australia (Rivers et al 2015). In this case, the net present value calculation represented future earnings as a physiotherapist minus the costs associated with obtaining the degree.…”

Section: Net Present Valuementioning

confidence: 99%

AMEE Guide No. 123 – How to read studies of educational costs

et al. 2019

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Healthcare and health professions education share many of the same problems in decision making. In both cases, there is a finite amount of resources, and so choices need to be made between alternatives. To navigate the options available requires effective decision making. Choosing one option requires consideration of its opportunity cost -the benefit forgone of the other competing options.The purpose of this guide is to introduce educational decision-makers to the economic concept of cost, and how to read studies about educational costs to inform effective cost-conscious decision-making.This guide leads with a brief review of study designs commonly utilised in this field of research, followed by an overview of how study findings are commonly presented. The tutorial will then offer a four-step model for appraising and considering the results of an economic evaluation. It asks the questions: 1) Can I trust the results? 2) What are the results telling me? 3) Could the results be transferred to my context? 4) Should I change my practice?Educational decision-makers are uniquely positioned to create change in teaching and learning practices. Data published from economic evaluations can be a powerful decision-making aide. As the number of studies that examine the cost and value of health professions education grows, education decision-makers will require increasing skill in understanding, appraising, and considering the study findings, to ensure that educational activities achieve optimal value for a given spend. PRACTICE POINTS1. The main reason to consider cost and value in health professions education is to ensure that teaching and assessment deliver optional educational value for a given spend.5. Appraising a study's reporting of costs can be assisted by asking 1) How were the interventions cost-items identified? 2) how were the cost items measured? And 3) how were the cost items priced?6. Uncertainty around point estimates of cost and value is evaluated through the sensitivity analysis, which considers the impact of varying assumptions and conditions. Decision-makers should consider the sensitivity scenario which best aligns with their own context, to better interpret study transferability.7. Value is highly context dependent, and decisions concerning the uptake or rejection of an educational innovation are ultimately affected by factors and forces beyond effectiveness and costs.

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The economic value of an investment in physiotherapy education: a net present value analysis

Abstract: With an approximate payback period of 4 years, coupled with strong and positive NPV values, physiotherapy education in Australia is a financially attractive prospect and a viable value proposition for those considering a career in this field.

Cited by 13 publications

References 7 publications

The Prato Statement on cost and value in professional and interprofessional education

The Prato Statement on cost and value in professional and interprofessional education

The Scenario Analysis for NPV and IRR in Mutually Exclusive Projects

AMEE Guide No. 123 – How to read studies of educational costs

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