SimHealth Hospital: Business Case Analysis of Diabetes Management

This business case analysis focuses on diabetes management within the SimHealth context, particularly addressing the high incidence of diabetes among indigenous Queenslanders. The analysis identifies factors contributing to the problem, such as sedentary lifestyles, poor diets, and genetic predispositions. SimHealth proposes a comprehensive plan involving various stakeholders, including diabeticians, medical sociologists, health social workers, and nutritionists, to deliver timely and safe services. The initiative seeks $47 million in funding from the Australian government to subsidize healthcare benefits, purchase insulin, and implement awareness programs through door-to-door campaigns and street plays. The desired outcomes include improved healthcare access, enhanced community awareness, and ultimately, the amelioration of diabetic conditions within the indigenous community, measured through surveys and feedback mechanisms to continuously improve service delivery.

BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
Name of the student

1BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT

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Abstract
Diabetes is considered to be the fifth largest cause for mortality in Australia.
Although, people from all strata of the society are affected by diabetes, the incidence of
diabetes among the indigenous Australians is quite high. The identified reasons for diabetes
are a sedentary lifestyle, smoking, genetic factor and consumption of fast food. To alleviate
the problems of the indigenous Queenslanders, simHealth will involve the various
stakeholders and the indigenous community in alleviating diabetes. The 47 billion dollar that
have been proposed by the Australian government will be utilized by the organization in the
purchase of insulin and the creation of doo-to-door campaign as well as organizing street
play. The outcome of the business plan is that it will ameliorate the diabetic condition of the
indigenous community.

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Summary statement
According to McDermott et al, (2015), the indigenous population in Australia living
in the remote areas are affected with diabetes. It also reported that the rate of
unemployment, education and awareness about health is also poor among the indigenous
community. According to the NDSS data, 45 children in Queensland have been diagnosed
with diabetes and 60 per cent of the cases are of Type 2 diabetes. simHealth is worried
about the situation and is going to implement innovation in the service delivery that will
cater to timely and safe service to the indigenous community. In this drive, the aim of the
organization is to promote empowerment, keep an open-mind and strive for safety
and excellence. Since a person with type 2 diabetes have to spend $10, 000 annually on
their diabetes expenditure that exerts an economic burden. Therefore, simHealth would
request for 47 billion $ from the Australian government to provide subsidized healthcare
benefits to the indigenous Queenslanders.

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Introduction
Brief description of the problem of what has happened in the past and the
current position
Diabetes is considered to be the most growing disease in the world and especially in
Australia it has created a huge challenge for the public health system. It is found that the
indigenous communities in Australia are three times more likely to experience to Diabetes
than the non-indigenous population (Burrow & Ride, 2016). It was reported that indigenous
women are two times more likely to acquire gestational diabetes as compared to their non-
indigenous counterparts. Once again there is a stratification witnessed among children as they
are eight times likely to be affected by Type 2 disease (NCD Risk Factor Collaboration,
2016). On the front of mortality rates, the indigenous people are more likely to be die from
diabetes compared to the non-indigenous Australians. There have been robust efforts from
the Australian government to make changes in the healthcare system and alleviate the lives of
people. National Health and Hospitals Reform Commission was established in 2009 that
made important recommendations (Chamberlain et al., 2015). The improved federal
structures of the government aims to intervene on the issues of workforce planning,
preventive health, registration of the practitioner and the issues of pricing and funding of the
service related to healthcare. It is felt that there is a need to address the health care issues
through the customer value proposition related to private health insurance.
Setting the scene for the business case
A review of literature and pilot study on the diabetes management in Queensland it
was found the healthcare services for the indigenous population is in a deplorable state. The
public sector initiatives alone are not enough to address the rise of diabetes in Queensland.
Community-based healthcare units have come up to look after the needs of the indigenous

5BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
Queenslanders and create awareness for them (McDermott et al., 2015). Since, a community
health-worker model has found to be more effective, I purport to set up an entrepreneurial
venture that work in collaboration with social workers specializing in diabetic doctors or
diabeticians, dietician and diabetic educators.
Why is a change required?
Since diabetes has been recognized as the 12th largest disease in Australia, there is an
urgent need to look into the problem. The Australian government has been relentlessly
committed towards the prevention and seeking of pertinent solution for diabetes. According
to Thomas et al., (2014), 5 per cent of the adults residing in Queensland are reported to have
diabetes according to th2 1011-2012 report. According to Kelaher (2014), 7 per cent of the
adults residing in Queensland are found to have diabetes based on GTT (blood measurement).
This kind of a situation makes it compelling to initiate a business venture that can tap the key
issues of diabetes. The prevalence of Type 1 diabetes among adults in Queensland is 21, 870.
The number of registered case of Type 2 diabetes among adults in Queensland is 1, 40, 276.
2 Assessment of the Situation
2.1 Problem Statement
Identification of the cause of the problem
According to Grantham et al., (2013), the NDDS (National Diabetes Scheme) has
recognized that there is a growing trend of diabetes among the 20 to 30 year olds (Type II
diabetes strikes younger, 2018). Regarding the cause of the development of Type 1 diabetes
not much data is available. However, in case of Type 2 diabetes the identified reasons
obesity, sedentary lifestyle, consumption of fast food, genetic reasons-situations when there is

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a family history of the person diagnosed with diabetes (Chamberlain et al., 2013). Highland
blood can also lead to diabetes. According to Hodge et al., (2013), persons who have PCOS
(Polycystic Ovary Syndrome) also have the tendency to develop diabetes.
Effect on the population, patients, and organization
The symptoms of diabetes are an increased thirst, a feeling of exhaustion or fatigue,
blurred vision and the continuous urge to urinate. Diabetes has the potential to pose long-term
damage to the diabetes patients, this is known as diabetic complications. It affects the nerves
and blood vessels of the body and leads to more damage of certain parts of the body than the
other parts. Another malaise brought by diabetes is the effect on the heart. It can propel
coronary heart disease and is connected with cholesterol. It is cholesterol that intensifies the
possibility of cardiovascular disease and heart attacks. Another problem concomitant with
diabetes is diabetic retinopathy which is an outcome of diabetes in uncontrolled and
controlled conditions (HealthInfoNet, 2014). Diabetes can also damage the kidney and the
nerves. The condition of nerve damage can be witnessed in the form of numbness of nerves,
abnormal sweating and the issue of delay in the emptying of stomach (Garcia-Garcia & Jha,
2015). Diabetic nephropathy is n outcome of damage in the kidney. This occurs over a
protracted period of time.
2.2 Evidence of the problem
There is a correlation between the complications of diabetes, educational level, age
group, status associated with the occupation, relation with the family members. More
number of indigenous Queenslanders are getting checked for diabetes. It is predicted
the problem that a large number of youth are in serious danger. The indigenous
patients had to bear an obnoxious amount of $306 billion that is more than 1 of 5

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dollars spent for medical care in Australia. The occurrence of diabetes is not limited
to the individual biography but the broader social and historical context.
 Demand forecasts with assumptions- The biomedical and behavioral risk factors
associated with diabetes can heighten the risk of acquiring diabetes. Indigenous
Queenslanders have the greater tendency to develop diabetes than the non-indigenous
population in Australia (Bartlett, Haines & Butler, 2018). They are reported to have
multiple risk factors and associated health issues.
 Report or published paper- Reeve et al (2014), in their study of diabetes among the
indigenous population, In Australia, Diabetes mellitus is known for being a National
Health Priority Area for Australia. There has been a paucity of research of diabetes
among the indigenous population. The high occurrence of diabetes among the
indigenous population is due to the difference in education and in BMI that is
widening the gap between the incidence of diabetes between the indigenous and the
non-indigenous population.
 key performance indicators (KPIs) on current performance levels- My desired
outcome with my entrepreneurial venture is that I want subsidized healthcare benefits
to reach the indigenous Queenslanders through consultation of the experts in the
fields. The stakeholders of the organization (diabeticians, medical sociologists, health
social workers and nutritionists) will play an equal role in the success of the
organization. I will conduct a survey among the persons affected with diabetes to
assess whether they have received the healthcare service. I will continuously seek
their feedback to keep a tab on their health outcome. These feedback will enable me
to improve the service of the organization. I will create awareness programs among
the indigenous Queenslanders through door-to-door campaigns, street play and stage
shows.

8BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
 Examples of the problem- It is found that the change in the nutrition and
transformation in the physical activity has played a key role in the development of
diabetes. In 2010, a study in Australia found that women who have not breastfeed
their children are more likely to develop diabetes compared to women who did not
have a child.
3 Benefits of this proposal
3.1 Benefits to be delivered
 Financial- The pilot study that would be conducted will provide an insight into the
incidence, number and problems among indigenous Queenslanders because of
diabetes (since a large-scale pilot survey requires money).
 Financial- Diabetes awareness programs can be conducted and purchase of insulin
that is to be distributed at a low cost.
 Non-financial- simHealth believes that the involvement of the different stakeholders
will alleviate the magnitude and burden of diabetes
3.2 Measuring the outcomes
Summarize how you will measure the outcomes using the table below. Include around 4 or 5
key outcome measures.
Measurement Baseline Target Measure When will measurement

9BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
Description Measure
What is the current
state?
(Include interim
targets. Consider $,
FTE, rates, target
budget, etc.)
occur?
What is the measure?
Start
Date
Frequency
End
Date
 Purchase of
insulin
 Awareness
programs
among the
community
through street
play
 Awareness
program
though stage
show and
street play
Currently we are
in the stage of
sourcing the
materials.
Currently we are
in the stage of
planning the
themes and
scripting.
Currently we are
looking for the
appropriate
venue and
scripting the play
FTE 30 $
20 $
35 $
10th
April
15th
April
15th
April
6
5
4
10th
June
10th
June
3rd
June

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4 Solution/s
4.1 Description of Option
Option 1 - Current situation – Currently we are trying to collect data about the
indigenous population in Queenslanders and working with the different stakeholders to help
with the problem.
Option 2 - The preferred option - The organization is interested to involve the
indigenous community in raising the awareness.
4.2 Comparison of Options
Criteria Option 1 Option 2
Benefits
 Community or patients
 Staff
 Organisation
This will be helpful as the
different stakeholders are
involved.
The engagement of the
indigenous community in the
diagnosis, prevention and
identification of the problem
will have long-term effects.
Risk
 Community or patients
 Staff
 Organisation
No possible risks as the
experts will look into the
incidence of diabetes.
There would not be risks as
the community members
will be involved in driving
change for their won

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awareness and prevention.
Costs:
 Project
 Recurrent
 Savings/Revenue
47 Australian
AUD (According
to the patronage
offered by the
Australian
government)
35 AUD
20 AUD
47 AUD
30 AUD
25 AUD
Time to implement 2 month 2 month
5 Recommendation/s
State your recommendation/s and briefly explain your reasoning. Your reasons might include
Involving the community and different stakeholders will prove beneficial for alleviating
diabetes. The people who are affected by diabetes should be made active participants in
driving change of their condition. It will create a sustainable community that will involved in
be creating awareness among the indigenous community and alleviate their problem.
 Benefits to patients, staff and organization- The collaborative effort will create a
strong network of informed experts as well the parties who are affected by diabetes.
 Risks to patients, staff and organization - In context to the present business case,
there are no identifiable risks.
 Costs

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o Estimate of the set up costs (if any) – non recurrent costs- Right now there
are no possible costs
o Estimate of the ongoing costs – recurrent costs- It would be of 30 USD
 Time it would take to implement the option- Since the project involves doing a
pilot study, survey, evaluation of the situation followed by implementation, a two
months period will be required.
6 Estimated Costs
Non-recurrent
(set up costs)
Recurrent
(ongoing running costs)
Estimated expenditure Labour Costs Non-labour Costs
 Capital Acquisitions
26 AUD
20 AUD
25 AUD
35 AUD
32 AUD
28 AUD
Estimated revenue / cost savings (if any) 32 AUD 30 AUD
Estimated net cost to simHealth 47 AUD 47 AUD

13BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
Reference and bibliography
Bartlett, C., Haines, L., & Butler, S. (2018). Reimagining health reform in Australia: Taking
a systems approach to health and wellness. Strategyand.pwc.com. Retrieved 5 April
2018, from https://www.strategyand.pwc.com/reports/health-reform-australia
Burrow, S., & Ride, K. (2016). Review of diabetes among Aboriginal and Torres Strait
Islander people.
Chamberlain, C., McNamara, B., Williams, E. D., Yore, D., Oldenburg, B., Oats, J., & Eades,
S. (2013). Diabetes in pregnancy among indigenous women in Australia, Canada,
New Zealand and the United States: a systematic review of the evidence for screening
in early pregnancy. Diabetes/metabolism research and reviews, 29(4), 241-256.
Chamberlain, C., McLean, A., Oats, J., Oldenburg, B., Eades, S., Sinha, A., & Wolfe, R.
(2015). Low rates of postpartum glucose screening among Indigenous and non-
Indigenous women in Australia with gestational diabetes. Maternal and child health
journal, 19(3), 651-663.
Garcia-Garcia, G., & Jha, V. (2015). CKD in disadvantaged populations.
Grantham, N. M., Magliano, D. J., Hodge, A., Jowett, J., Meikle, P., & Shaw, J. E. (2013).
The association between dairy food intake and the incidence of diabetes in Australia:
the Australian Diabetes Obesity and Lifestyle Study (AusDiab). Public health
nutrition, 16(2), 339-345.
HealthInfoNet, A. I. (2014). Overview of Australian Indigenous health status. Perth: Edith
Cowan University.

14BUSSINESS CASE ANALYSIS OF DIABETES MANAGEMENT
Hodge, A. M., Flicker, L., O’Dea, K., English, D. R., & Giles, G. G. (2013). Diabetes and
ageing in the Melbourne collaborative cohort study (MCCS). Diabetes research and
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(2015). Community health workers improve diabetes care in remote Australian
Indigenous communities: results of a pragmatic cluster randomized controlled
trial. BMC health services research, 15(1), 68.micro and mac.
NCD Risk Factor Collaboration. (2016). Worldwide trends in diabetes since 1980: a pooled
analysis of 751 population-based studies with 4· 4 million participants. The
Lancet, 387(10027), 1513-1530.
Reeve, R., Church, J., Haas, M., Bradford, W., & Viney, R. (2014). Factors that drive the gap
in diabetes rates between Aboriginal and non‐Aboriginal people in non‐remote
NSW. Australian and New Zealand journal of public health, 38(5), 459-465.
Thomas, S. L., Zhao, Y., Guthridge, S. L., & Wakerman, J. (2014). The cost-effectiveness of
primary care for Indigenous Australians with diabetes living in remote Northern
Territory communities. The Medical Journal of Australia, 200(11), 658-662.
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http://www.couriermail.com.au/news/queensland/more-queenslanders-under-40-
being-diagnosed-with-type-ii-diabetes/news-story/
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