GOVERNMENT TOOLS
business
CONSULTING
Economic evaluation - Rural Clinical Health School, Victoria
Key highlights
The Client
Goulburn Valley Health
Challenge
Providing safe, effective and accessible health care services is important for the smooth functioning of the community and its economy. However, Australia has a shortage of healthcare professionals and the shortage is expected to get worse as the demand for healthcare services increases.
Our Method
.id conducted an economic appraisal of the proposed Rural Clinical Health School to support its development and grant applications by building a strong business case.
Highlights
The Benefit Cost Analysis estimated that the benefits to the Greater Shepparton community from the new school significantly outweigh the costs by a ratio of 4. That is, for every $1 million investment, the proposed school is expected to generate an additional $4 million of economic and community benefit.
Results
.id’s comprehensive economic evaluation helped provide independent evidence to support the preparation of a business case for Federal Government funding submissions. The new school has since been successful in receiving Federal Government funding.
About the project
In 2023, our consultants conducted an economic appraisal of the proposed Rural Clinical Health School to be built in Shepparton, Victoria. The new school is a collaboration between GV Health and La Trobe University and provides nursing, midwifery and allied health undergraduate and post-graduate education.
Our method
To evaluate the economic benefits of the project, our economics team undertook the following:
- Need analysis: We conducted a demographic and socio-economic analysis to determine the strategic need for the project.
- Employment forecasts: To understand the potential future shortage in Greater Shepparton, we undertook a demand and supply forecast analysis. The analysis showed that Greater Shepparton would face a worker shortage of around 420 Registered Nurses and Midwives by 2036.
- Cost-benefit analysis: We compared the cost of the project with benefits like future earnings of health workers through upskilling and qualifications provided by the Clinical Health School. This evaluation was undertaken in accordance with the guidelines prescribed by the Australian Government.
- Economic impact analysis: As part of the project we estimated the direct and indirect economic and employment impacts from the construction and operation phase. The ongoing operation of the new school is expected to support 45 FTE jobs and add $3.7 million to GRP to Greater Shepparton’s economy every year.
Results
.id’s comprehensive economic evaluation helped provide independent evidence to support the preparation of a business case for Federal Government funding submissions. Our work clearly showed the proposed Rural Clinical Health School would:
- Help alleviate the shortage of health care workers through an increase in supply and retention;
- Improve the health and wellbeing of local residents in the catchment;
- Provide local youth with a health care career pathway (e.g. from Personal Care Assistance, Enrolled Nurse to Registered Nurse);
- Helps diversify the Greater Shepparton economy by growing the education and health care industry;
- Deliver a substantial benefit to cost ratio.