Estimating costs from an operator’s perspective
Econ
317
assignment
3
1.
Set
the
decision
problem
a.
Perspective:
We
estimate
costs
from
an
operator’s
perspective.
For
customers,
the
service
can
be
called
by
phone,
and
the
cost
is
negligible.
b.
Time
horizon:3
years
c.
Target
population:17155,
half
of
the
elderly
people
aged
over
75
in
Victoria
of
BC
,
because
the
public
health
care
coverage
rate
is
around
50%.
d.
Setting:
The
services
will
be
done
in
users’
own
residences
in
the
City
of
Victoria.
They
can
search
and
find
the
specific
care
they
need
in
the
community
centers
within
the
region.
2.
Identify
all
relevant
resources
a.
Capital
:
a
room
in
the
community
centers
b.
Labor:
nurse
time,
volunteer
time,
educator
time,
and
house
worker
time
c.
Energy:
electricity
for
lighting
and
office
machines,
natural
gas
for
heating
d.
Material:
nursing
material,
computer,
phones
e.
Service:
transportation
to
the
clients
’
home
3.
Measure
resources
Table
1
Parameter
Resource
Volum
e
Source
home
nursing
care
nursing
time
797760
home
care
reporting
system
transportation
540
Literature/Product
Monograph
nursing
material
2190
nursing
education
resource
study
guide
nursing
care
nursing
time
930384
senior
statistics
by
Canada
government
transportation
8307
Literature/Product
Monograph
nursing
material
15506
nursing
education
resource
study
guide
office
support
volunteen
time
4380
Literature/Product
Monograph
educator
time
32
Literature/Product
Monograph
electricity
365
Literature/Product
Monograph
gas
90
Literature/Product
Monograph
computer
1
Literature/Product
Monograph
phone
2
Literature/Product
Monograph
room
1
Literature/Product
Monograph
a.
Home
care:
According
to
the
home
care
reporting
system,
there
are
26612
people
in
BC
needing
long-term
home
care
every
year.
Assuming
the
home
care
rate
(home
care
population
/
total
population),
there
are
2217
people
in
Victoria
needing
long-term
home
care.
Assuming
half
of
them
are
covered
by
public
health
care
(the
public
health
care
coverage
rate
is
nearly
50%),
and
half
of
the
rest
will
hire
home
care
service
(home
care