Business Case on Diabetes

This business proposal aims to reduce the number of new cases of diabetes and manage the current ones effectively. It focuses on the indigenous community in Queensland, Australia.

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Running head: HEALTH AND ECONOMICS
Business Case on Diabetes
Name
Institution

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HEALTH AND ECONOMICS
Abstract
Australia is categorized as the 7th country worldwide that is affected with type 1 diabetes
in children between the ages of 1-14 years. Approximately one million of its citizens have been
diagnosed with diabetes. the type 1 diabetes is mostly found with the young age though it has
started being diagnosed with the adults too. The type 2 diabetes has been found to increase with
increase in age and prevails more in men than in women. One of the many reasons found to
cause diabetes in Australia is unhealthy lifestyle. A funding has been released by the government,
it promises to offer 47 billion dollars for the new ways that will be thought of to manage diabetes
like for the care givers program who will do a door to door management and prevention of
diabetes. SimHealth an organization dedicated to reduce the rate of diabetes among the
indigenous Australians are coming up with new ways to achieve their objective. This business
proposal will help in reducing the number of new cases of diabetes and manage the current ones
effectively.
Keywords: indigenous Australians, diabetes type 1, diabetes type 2, lifestyle

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HEALTH AND ECONOMICS
Summary
In Queensland Australia there has been a rise of type two diabetes. This rise of type 2
diabetes includes kids and the teenagers who are mostly affected by the type 1 diabetes.
Unhealthy lifestyle, luck of exercise, obese and hereditary genes have been found as the main
causes of diabetes in Queensland most especially to the indigenous community. It is projected
that up to 3 million Australian people beyond 25 years by 2025 will be having diabetes if
diabetes will continue rising at the current rate. In light of these revelations, simHealth is coming
up with new ways and the use on new resources to customize treatment and the management of
diabetes specifically for the indigenous community. The Australian government spends a lot of
money in the prevention and management of diabetes; One person who has diabetes type two
costs $10, 000 a year and This has affected the productivity of the state with $1.1 billion a year.
In relation to the funding that has been tabled, simHealth is going to employ more care givers,
purchase equipped vehicles with diabetes products and create more awareness concerning
diabetes.

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HEALTH AND ECONOMICS
Business Case on Diabetes
1.0 Introduction
Diabetes- the disease where the body is unable to produce or respond to insulin resulting
to abnormal rise of sugar in the blood stream- can only be managed and prevented but not cured
(Saudek, 2009). Though it cannot be completely cured, it can get to a point of remission. This is
mostly termed as the “honeymoon period”. This is when the glucose level of the blood goes back
to normality which normally lasts at least a year without the requirement of medication (Buse et
al., 2009). Two kinds of diabetes; the mode one and mode two diabetes. Category 1 diabetes also
referred to insulin- reliant diabetes is a fatal disease where the pancreas is damaged and cannot
produce insulin or produces in little amounts that the body cannot operate on. Type two diabetes
on the other hand is where the body itself causes the rise of blood sugar level than the normal
required amount (Nathan et al., 2009). Normally, one has to be under medication if he has the
type two diabetes for the rest of his life. It is known as the common of the two. Its causes are
mainly bad lifestyle and genetics. Here the body becomes insulin resistance and fails to use it as
it should and therefore the glucose levels pile up in the blood (Surwit, 2013).
192,000 Queenslanders have been identified with type 2 diabetes (Baker IDI Heart and
Diabetes Institute, 2012). Every single day new diagnosis of 60 people is made. This is such a
high number that has troubled the government and the health organizations in Queensland. The
indigenous people are three times more likely to be identified with diabetes than the non-
indigenous (Burrow & Ride 2016). Moreover, the indigenous women are twice more likely to
have gestational diabetes than their counterparts. More hurting is the fact that the indigenous kids
are utmost 8 times likely to be analyzed with diabetes and the indigenous people are 6 times
more likely to die with diabetes than the non-indigenous people (Burrow & Ride 2016).

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HEALTH AND ECONOMICS
A lot has been done both by the government and health organizations. The
Pharmaceutical Benefits Scheme that offers subsidies in the purchase of drugs, the National
Diabetes Service provides subsidies tot hose registered under the scheme when they get products
and services of diabetes, programs that support healthy livings and many more organizations
have been part of those fighting diabetes in Australia. With all these stakeholders and many more
joining against diabetes there is still rise in diabetes and this needs to be dealt with.
Setting the scene for the business case
In order to help its citizens, the Queensland government has allocated funding for
research and coming up of different ways on how diabetes can be reduced and managed in
Queensland. The amount set aside is $47 billion and this will be offered for over four years. This
funding is geared towards coming up with new services or using of new resources in order to
manage the increase of diabetes affecting the indigenous people. I propose to come up with a
program that is going to have care givers as the central part of it, they will offer medication at
home, will sensitize the communities and report new cases of diabetes for early management.
They will mostly work with the dieticians and diabetic physicians.
Why change is needed
In Queensland there has been a rise in the amount of people hurting from type two
diabetes especially those of indigenous origin. The main cause is not yet known but obese has
been termed as one of the reasons why the rate of diabetes has been increasing. It is projected
that up to 3 million Australian people beyond the stage of 25 years by 2025 will be having
diabetes if diabetes will continue rising at the current rate. Having a lot of people with diabetes
means that a lot of money is spent in treating them which could have been spent elsewhere
productively. One person who has diabetes type two costs $10, 000 a year. A study done by
NDSS in February 2016 believe that there could be more than 500,000 Queenslanders with

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undiagnosed diabetes or are pre-diabetic or are at a very great danger of getting diabetes. That is
why curbing this menace is also going to help the country be more productive.
2.0 Assessment of the problem
2.1 Problem statement
Identifying the cause of problem
Here in Australia studies show that obesity, bad lifestyle, change in diet and the ageing
population has contributed to the rise of diabetes. Managing and preventing of type two diabetes
can easily be done by eating a healthy meal and exercising.
More people are obese in Queensland than any area in Australia which is equivalent to 29
percent of the whole population (Page-Carruth et al., 2014). This is mainly because they do not
exercise, do not watch on what they eat, are so dependent on cars, are highly disadvantaged, they
come from remote and regional areas where going for checkups and following up on their health
has become a challenge (McDermott & Campbell., 2010). Another reason is being employed,
they go to work and after work they go back to their houses and therefore are seated the whole
day, they do not get to move around. Diabetes has been increasing at a very high rate since 1995
when the first data was taken by simHealth (McDermott & Campbell., 2010). Smoking and
alcohol consumption are very high with the younger population and those working aged between
25 to 54 years tend to take in less fruits and vegetables. All these things have contributed to the
rise of obesity in Queensland.
Effects of the problem to patients, organization and population
As type two diabetes is caused mainly by obesity, lifestyle and a diet that is not so healthy
it leads to a lot of issues (Lee, 2013). It can cause a kidney failure which will require to treat for
the same and even get a transplant which is more expensive. In the remote areas where many
people are not so well-off transplants are but a dream (Grace et al., 2013). They are forced to rely
on therapies offers to manage the kidney failure. Sometimes they are successful, other times the

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HEALTH AND ECONOMICS
loved ones end up perishing. They also are disabled at early ages. These disabilities are like
blindness, diabetic foot, bladder dysfunction and impotence (Gomes & Negrato, 2015). Some of
these effects though can be prevented if detected at early stages of diabetics but most people wait
until it is too late then they come for treatment. The patients are the ones who normally lose so
much because diabetes can cost them their sight, heart disease, lower limb amputation and
kidney failure (Reidy et al., 2014). They get strained financially due to the many trips that are
made to the dialysis center and the other challenges that come with diabetes like the diabetic foot
(Brownrigg et al., 2012). They also are required to eat a good diet which sometimes for them can
be expensive (Sav et al., 2013). This expensive medication is what may be causing a low turnout
of indigenous Australians from accessing medical services (Mirzaei et al., 2013).
2.2 Evidence of the problem
The rise in diabetes type two for the indigenous people has been contributed mostly by
them coming from remote areas, therefore they may not have means of getting good food with a
diet that can help them, also it may be that good fresh food may take a long time to get to them.
Therefore, going forward, there needs to be changes on how the management and prevention of
diabetes growth rates are curbed.
 Demand forecasts with assumptions: Most of the indigenous people were found to
eat high energy food that were nutrient deficient and this led to them being
dragonized with diabetes (McDermott et al., 2009). This has caused a rise in
obesity.
 Report or published paper: According to the records at simHealth, non-
indigenous people attending medication is 297 yearly compared to 16 of the
indigenous people. Studies show that if one person was to be healed completely

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HEALTH AND ECONOMICS
and the person stops going for dialysis then an approximate of over $65,000
yearly of the state money will be saved.
 Key performance indicators on current performance level: with this business
proposal and in line with the objectives of the organization I seek to offer free
screening services to all the indigenous people especially living in the remote
areas. They will also receive frequent check-ups on a subsidized fee but most
importantly their treatment cost will be amazingly cut down. With the dieticians,
diabetic doctors, care givers and the various stakeholders I plan to reduce the
number of children contracting diabetes. Lastly, I plan to do a door to door
cognizance of prevention and management of diabetes.
 Examples of the problem: it is expected that the number of those with normal
weight is going to decrease by 2025 from 40.6% to 28.1%. This implies that the
number of people who are obese is going to grow from 20.5% to 33.9%. this has
been cited mainly because they eat foods high in energy but are nutrient deficient
(Callaway et al., 2002). This led to the rise in diabetes.
As of now the Australian government spends $6 billion of its economy annually to
manage and prevent diabetes growth. There should be more investments to fight diabetes. It has
been noted that if obese were to be eliminated then diabetes type two would not continue
affecting a lot of people. Diabetes type two would decrease by 38% in males and 47.4% in
females (Cameron et al., 2009). Compared to normal weight people, obese people are three times
greater at a higher risk in getting diabetes (Australian Institute of Health. 2012). Further, it is
expected that the number of those with normal weight is going to decrease by 2025 from 40.6%
to 28.1%. This implies that the number of people who are obese is going to grow from 20.5% to

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33.9%. Intra-uterine conditions like the gestational diabetes can also cause diabetes for the new
born. The baby may develop diabetes type two later in life (Reece, 2010). This demands for strict
trail on the maternal health if the growth of diabetes has to be reduced which can be done by care
givers (Schmidt et al., 2012).
3.0 Benefits of the proposal
3.1 Benefits to be delivered
 Financial-If this problem were to be solved there would be a lot of benefits both
for the community and the State. One of the benefits would be the state will be
able to save a lot of money that can go into other areas of development. The
frequent visits to the hospital and emergency room will reduce therefore reducing
the amount used in these places. The number of people having diabetes will also
reduce.
 Non-financial-acquisition of the information from the various homes will help in
future research.
3.2 Measuring the outcomes
Quantity Description Baseline Degree
What is the present
condition?
Measure of the
aim
(Include interim
targets. Consider $,
FTE, rates, target
budget, etc.)
When will measurement take
place?
What is the portion? Start
Date
Frequenc
y
End
Date
Purchase of vehicles We are currently in
the process of
identifying where
good vehicles to be
used in remote areas
can be found
affordably.
$984,335 17th
April
3 times
monthly
17th
October
Employment of new
staff
We have currently
sent out the
1 million dollars 17th
April
4 times
monthly
17th
October

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HEALTH AND ECONOMICS
advertisements for
the same positions
Solutions
If we are able to get this funding, we will be able to roll out a programme where a lot of
people are employed to go into the remote where indigenous people are and get the state of their
health. All those who have should be noted down. All those whose families have had a history of
the same should also be noted down. The organization will then take the opportunity to follow up
on these people. The organization will also purchase certain vehicles to go to these remote areas.
These vehicles can be equipped with hospital equipment’s especially those related with diabetes.
These will be doing rounds in these remote areas, administering medication, advising on the
meals required, and helping in any other way to make comfortable those affected with diabetes.
These responses are going to be patient based. Having patient-based services is going to have a
great impact in achieving Queensland main objectives of having a reduced-diabetes population
(Webster, 2017). This would require the staff employed to be patient friendly, get to understand
their level of understanding of diabetes and be in a position to convince them to get treated and
live a lifestyle that is healthy just as American Diabetes Association 2016 recommends (Ross,
2013). It is in this rounds that those expectants can also be taken care of if they cannot afford to
get to the city for the same. These services will require funding so that either the indigenous
citizens pay less or completely do not pay. This will avoid the challenge of finances. With these
preventive and management strategies the number of diabetes patient will reduce therefore
reducing the amount spent for treatment and managing it when the disease has advanced. The
organization will be in a better position to actually point out more about diabetes in the area and
how to curb it. This will give them good information that will enable them to research more.
Screening of the indigenous people will also take place more frequently while in these vehicles.

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HEALTH AND ECONOMICS
No one will have to go to the main hospital. Companies where the indigenous work can also be
approached and requested to set up standing desks for their employees just so the sitting time
may be reduced.
Description of options
 Options 1: In the current situation we are trying to encourage the indigenous
people to come for checkups when they are still young so that prevention and
management can be done early too.
 Option 2: In the preferred option the organization is looking forward to go to the
remote areas and carry the necessary awareness, management through issuing of
drugs and monitoring the kids whose families have a history of diabetics from the
vehicles to be purchased.
Comparison of options
Criteria Option 1 Option 2
Benefits
 Community or patients
 Staff
 Organization
The number of patients
attending the hospital will
remain the same.
The staff will also remain the
same there will be no need to
employ more.
The organization will not spend
more.
The number of patients being
attended to will increase thus
diabetes will reduce.
The number of Staff will also
have to increase but more
patients will be reached.
The organization will be able to
help the indigenous citizens.
Risk
 Community or patients
 Staff
 Organization
The number of patients will
grow overall including those
who do not come for treatment.
The organization will not be able
to curb with the rising number of
diabetic patients.
Patients will have to accept to
allow someone like a care giver
to walk with them.
There will be more work for the
staff.
The organization may not be
able to reach everyone.
Costs:
 Project
 Recurrent
 Savings/Revenue
$0
$1.1 billion
$1.1 billion
$2 million
$500000
$10.5 million
Time to implement Continuous 3 months

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HEALTH AND ECONOMICS
Recommendations
 Benefits to patients, organization and staff: there will be a cooperative effort
between the three and therefore there will be enough information on how to
prevent and manage the same. This will then reduce the cases of diabetes and the
money used yearly.
 Risk to patients, organization and staff: there is no risk known as of now.
 Estimate of the set-up costs: non as of now.
 Estimate of the ongoing costs: is at 40 million dollars.
 Time taken to implement: three months is required for getting the information
required, sourcing the vehicles and employment of new staff.
Estimated costs
Non-recurrent
(set up costs)
Recurrent
(ongoing running costs)
Estimated expenditure
 Labor Costs
 Non-labor Costs
 Capital Acquisitions
$15,665
$1 million
$984,335
$332,034
$1.066 million
$980,000
Estimated revenue / cost savings (if
any)
$98.1 million $40 million
Estimated net cost to simHealth $40 million $40 million

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