(PDF) Early onset dementia: Clinical and social aspects

Early Onset of Dementia
treatment clinic

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
1. Proposal for funding and financial risk analysis..........................................................................3
2. Breakdown of cost.......................................................................................................................6
3. Recommendations and performance measures used for business case ......................................6
CONCLUSION ...................................................................................................................................6
REFERENCES.....................................................................................................................................7

INTRODUCTION
Dementia is a progressive mental disease which affect memory, reasoning ability and
judgement and problem solving abilities, decision making and impairment in thinking and
communication. With the growing severity its treatment and regular assistance from the health care
service providers becomes mandatory. The identification of early onset of dementia (EOD) can help
to improve the quality of life of patient (DaDalt and et.al., 2016). In response to increasing number
of patients and expenses of dementia patients Gill county council and New life foundation are
planning a joint investment to support EOD treatment. The study will provide the financial analysis
of the proposed project so that dementia care of the patients can be improved and desired financial
outcomes can be achieved.
MAIN BODY
1. Proposal for funding and financial risk analysis
For EOD treatment, the New Life Foundation Trust and Gill Country Council Social
Services makes joint investment so as to support dementia patient in achieving full recovery with
minimum cost expenditure. Earlier for seeking medical assistance, dementia patient has to pay £55
each time they visited doctor. Both the foundation by coming together, decided to co – fund clinics
and incorporating of support centre thereby assisting 10 EOD patients per clinic.
The centre will be having two social workers, a senior doctor with two senior most practice
nurses and five ancillary staff for giving support facility. The amount of cost incurred on Equipment
is £20,000 for every two centre which is required to be renewed in every five year. The cost related
to consumable factor is considered as negligible.
With the help of feasibility study of new proposal as decided, it can be determined whether
investing in such project is viable or profitable or not. Feasibility study evaluated viability of idea
generated thereby ensuring worth of investing in such idea from the perspective of legal, technical,
economical as well as social phenomenon. In such case, by starting new clinic centre, it will
provides benefits to large number of patients as now they are not require to incur large amount of
cost every time on visiting to doctor.
Financial risk analysis is defined as study of all the uncertainty and risk as associated with
losses which can be arises due to financial instability, market fluctuation including movement in
stock price, interest rate, exchange rates, currency etc. (Jagadeesan, 2017). With the help of
analysis of risk factor, a company can determines factors which are causing variances and
fluctuation in returns, cash flow streams, viability and probability of success or failure of project in
which investment has been done by company. It covers two parts viz.

FINANCIAL ASPECTS
Investment appraisal is a method covering different techniques as used for assessing whether
investment done in a specific project will be attractive or not. It determines return, viability
associated from such investment. Techniques included in investment appraisal are as follows:
 Net Present Value – It refers to the term that is used for determining current value that will
be generated from all the future cash in the company. Company have to take many decisions
regarding its expansion and doing investment in the company for the future course of action.
It is used in capital budgeting for analysing profitability in business. There are variations
occur in NPV value depending upon consistency of cash flows. A rate of return is expected
for analysing different practices that will be helpful in determining cash inflow and outflow
in business.
Advantages Disadvantages
 Helps in creating value for the
company and helps in determining
either investment will create value
or investor.
 It is taking into cost of capital and
risk that are occurred in the future.
 This also help in taking decision
for companies that is related to
profitability or size of business.
 There are no guidelines set for
determining NPV value of the
company.
 It is not useful for comparing projects
that are of different size.
 It only taken into consideration inflow
and outflow of cash that will be needed
for completing project on time.
 Payback Period – It is the time period in which company will be able to recover its initial
outlay associated with the investment made in the project. With the help of payback period
calculation, it can be assessed that in how much amount of time, recovery of cost expenses
on investment will be recovered. Investment having short payback period is considered as
better one as within short time frame, cost associated with the investment process can be
recovered.
Advantages Disadvantages
 It is considered as one of the simplest
method for making comparison
among several projects.
 It don't considers time value of
money.
 It neglects cash flows which are
received after the payback period is

 Is best suitable for companies having
uncertainty, rapid changes in
technological terms, instability as it
doesn't permits projection of annual
cash inflows beyond a specified
period.
determined.
 It doesn't considers trend of cash
flow end at payback period and
ignores profitability aspect of project.
 This method doesn't takes into
account rate of return or return on
investment related to project.
NON FINANCIAL ASPECTS
In any feasibility study of a project, non financial factors are also important to be considered
for making better evaluation of return as well as risk associated with investment in a particular
project. In this case, both trusts are co-funding in clinic centre for providing medical assistance to
UK dementia patients at reasonable and affordable price with better quality feature. It includes
following aspects:
1. Availability of manpower – Before making investment in any of the new project, it is very
much important to ensure that enough skilled and experienced human resource or manpower
is available for operating and undertaking new projects effectively.
2. Competitors action and plans – Making deep analysis of market competition will be one
of the advantage for company as it will help in determining all the key policies and
strategies which competitive firms are using in making high profit and seeking competitive
advantages (Wang, Wang and He, 2016).
3. Government regulations – Before investing in any new project or making investment
decision, better understanding of applicable government rules, regulations and laws will be
helpful in formulation of strategies and plans.
4. Economic condition – Prior making investment decision, study of economic condition of
the operation place where company will undertake its business operations is essential. As it
can help in assessing whether such place is not having any economic crises or instability
affecting the business operations which can result in financial loss to the company.
2. Breakdown of cost
Cost associated with the clinic centre opening is related to Equipment installation i.e.
£20,000 per each two centres which is required to be renewed in every next five years. It has been
defined that consumable costs will be negligible for the clinic as well.
Cost in clinic covers Net present value as follows:
Example -

Year project A (£) project B(£) Disc. @ 5.88%
Discounted
Cash flows of
project A (£)
Discounted
Cash flows of
project B (£)
1 950000 870000 0.944 897242.16 821684.93
2 950000 1300000 0.892 847414.21 1159619.44
3 950000 250000 0.842 800353.42 210619.32
4 950000 790000 0.796 755906.14 628595.63
5 950000 1350000 0.752 713927.22 1014528.16
Total discounted cash flow 4014843.16 3835047.48
less: initial investment 20000.00 40000.00
Net present value 3994843 3790047
Interpretation – From the above calculation it can be evaluated that return given by Project
A is more as compared to Project B. Project A help in increasing profit as it is suitable for the
company in obtaining high return for the future purpose in company. Discounted value of project A
is more than project B. In Project A company is investing less amount while in Project B there is
more investment at initial stage of project. Therefore, it can be analysed from the study that
choosing Project A is providing different perspective and beneficial for it in the future.
3. Recommendations and performance measures used for business case.
For the success of project it is recommended that possible risks must be identified in prior so
that necessary improvements can be applied. Prior to the enrolment of patients the service providers
must ensure that the patients are in the EOD phase. Since in the early stages of dementia care
expenses are low and thus it will help trust to mange their operational expenses more effectively.
The admission of patients with advanced level of dementia can increase the cost spent on care. In
addition to this it has been observed that when medications are provided to the dementia patients
then it leads to additional expenses. On the other hand if instead of medications more therapies from
social workers are provided to EOD patients then their possible treatment expenses can be
minimised. In order to assure the quality of services and objectives of the project there must be
regular monitoring of both financial and non-financial parameters (Noel, Kaluzynski and
Templeton, 2017). The members of team such as nurses, doctors and social workers must be
properly trained so that they can utilise resources in suitable and cost effective way.
The financial aspects such as pay back period and net present value can be used for the
evaluation of the performance. The service providers must assure that their pay back period is as
low as possible. Its minimum duration can help to assess the performance on regular basis and how
each operational aspect can be improved. Another criteria which can be used for measuring the
performance and profitability is net present value of the service. The increasing net present value
demonstrate the successful execution of the activities in a way such that desirable profits can be

achieved. For evaluation of the service quality the feedback from the carers and service users can
also be taken into considerations. The carers of dementia patients can help to evaluate the health
status of the patients as well as the effectiveness of service provided.
CONCLUSION
From the above study it cam be summarised that for appropriate funding of the proposal
suitable risk analysis in terms of both financial as well as non financial aspects must be conducted.
For this purpose both financial and non financial factors must be taken into considerations. It has
been also analysed that cost breakdown and application of performance measurement technique can
help to support the project funding goals. It can be said that by making investment in project A,
both the trust will have maximum return and it will be profitable for them to make such joint
investment decision.

REFERENCES
Books and Journals
DaDalt, O. and et.al., 2016. Dementia and financial incapacity: a caregiver study. Working with
Older People. 20(2). pp.66-75.
Jagadeesan, S., 2017. A study on financial performance of tamilnadu newsprint and papers limited
tnpl Kagithapuram Karur district in tamilnadu.
Kim, K. B. and Kang, S. Y., 2016. Gearing to Make a Financial and Strategic Decisions:
Scandinavian Airlines System Group Case. 관관관관관관. 4(1). pp.33-44.
Noel, M.A., Kaluzynski, T.S. and Templeton, V.H., 2017. Quality dementia care: Integrating
caregivers into a chronic disease management model. Journal of Applied
Gerontology. 36(2). pp.195-212.
Wang, W. W., Wang, L. B. and He, Y. L., 2016. Parameter effect of a phase change thermal energy
storage unit with one shell and one finned tube on its energy efficiency ratio and heat storage
rate. Applied Thermal Engineering. 93. pp.50-60.
Online
Non financial factors affecting investment decision. 2019. [Online]. Available through:
<https://shodhganga.inflibnet.ac.in/bitstream/10603/43628/14/14_chapter%208.pdf>.