Question: VVH is considering a pharmacy-managed medication assistance program. This program would help patients who are unable to afford pharmaceuticals obtain free drugs from pharmaceutical manufacturers.
VVH is considering a pharmacy-managed medication assistance program.
This program would help patients who are unable to afford pharmaceuticals obtain free drugs from pharmaceutical manufacturers. VVH would save the cost of the drugs but incur costs to manage the program, and the organization would like to know if the program would be cost beneficial. VVH believes that between 60 and 120 patients will use this program, with equal probability over this range (a uniform distribution);
the average value of a patient’s drugs obtained per year will most likely be $200, but could be as low as $0 or as high as $1,000 (a triangular distribution). The time to administer the program is expected to follow a normal distribution, with a mean of four hours per week and a standard deviation of 0.5 hour per week (but never less than zero hours). VVH also believes that there is an 80 percent probability the program could be administered by pharmacy research fellows who receive wages and benefits of $30 per hour, but hospital pharmacists may need to administer the program ($60 per hour wages and benefits).
Analyze this situation using @Risk. What should VVH do? Why?
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