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For Expert Researcher ONLY Assessment 2-4

Wellness
March 17, 2018
Evidence-Based Practice Project—Paper On Diabetes
March 17, 2018

COST-BENEFIT ANALYSIS TEMPLATE
Step 1: Enter cost amounts as future value (FV) expectations. The future value will be automatically converted to present value (PV). Step 2: Enter benefit amounts as FV expectations. The FV will automatically be converted to PV. Step 3: Subtract the total PV benefits from the total PV costs to get the net benefit.
Costs Current Year (CY) CY +1 CY +2 CY +3 CY +4 CY +5 Total Costs
Total Costs (Future Value) $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
Total Costs (Present Value) $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
blank row
Benefits Current Year (CY) CY +1 CY +2 CY +3 CY +4 CY +5 Total Benefits
Total Benefits (Future Value) $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
Total Benefits (Present Value) $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
blank row
Present Value Discount Rate 2%
PV Denominator 1.00 1.02 1.04 1.06 1.08 1.10
Net Benefit $ – 0
End of worksheet
Guiding Questions
Business Case for a New Economic Opportunity
This document is designed to give you questions to consider and additional guidance to help you successfully complete the Business Case for a New Economic Opportunity assignment. You may find it useful to use this document as a pre-writing exercise or as a final check to ensure that you have sufficiently addressed all the grading criteria for this assignment. This document is a resource to help you complete the assignment. Do not turn in this document as your assignment submission.

Part 1: Risk and Mitigation Analysis
Analyze the opportunities and risks relevant to your proposed economic initiative.
· What are the opportunities that will be created by your proposed economic initiative?

· How will these opportunities be beneficial to your care setting?

· What are the risks associated with your proposed economic initiative?

· How could these risks pose a threat to the financial security of your care setting?

· How do the potential economic opportunities compare to the potential economic risks?

Propose ethical and culturally sensitive solutions to address the risks associated with your economic initiative to ensure the future security of your care setting.
· Which risks that you identified are potentially the most problematic for your care setting?

· How could each risk be mitigated?

· How could you modify your proposed economic initiative?

· How have other care settings and experts in the field dealt with similar risks?

· What other alternatives could you pursue to reduce the risks associated with your proposed initiative?

· How have ethics and equality factored into your proposed solutions (are your solutions not unfairly burdening or disadvantaging any specific groups)?

· How will this proposal affect community health care delivery outcomes?

· What makes this a great opportunity for economic growth?

· What might be potential issues to consider?

Part 2: Cost-Benefit Analysis
Analyze the costs and benefits of your proposed economic initiative over a five-year strategic outlook.
· Did you complete the Cost-Benefit Analysis Template?

· Include the template as an appendix item, which you will reference during your narrative analysis of your findings.

· How does your completed spreadsheet support or warn against specific aspects of your proposed economic initiative?

· How would you recommend the findings of the cost-benefit analysis be incorporated into the decision-making process regarding the feasibility of your proposed economic initiative?

Propose potential ways to keep costs under control while maximizing the benefits of your economic initiative and ensuring that it remains ethical and culturally equitable.
· What are the costs that you are most likely able to control or reduce?

· How would you go about ensuring this?

· How would manipulating these costs potentially affect the benefits of your proposed initiative?

· What are some strategies to maintain or maximize these benefits while making your proposed adjustments in costs?

· How do you plan to ensure that any adjustments to the costs or benefits of your proposed initiative are done ethically and in an equitable way?

Address Generally Throughout Business Case
Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence you used to support your recommendations throughout your report.
Note: This criterion will be addressed throughout your report. You should be using evidence that is relevant and persuasive to support your findings, proposals, and recommendations. You should be illustrating one or more of the following when citing support evidence to the senior management:

· How is the evidence relevant to your care setting?

· How is the evidence relevant to your proposed economic initiative?

· How does the evidence illustrate a solution that has been successful in the past?

· How does the evidence illustrate that an initiative or solution is likely to be a net benefit to the care setting?

Communicate your business case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.
· Is your report logically structured?

· Is your report 3–5 double-spaced pages?

· Is your writing clear and free from errors?

· Does your report also include both a title page and reference list?

Effectively support your report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.
· Did you cite 4–5 sources that provided economic, environmental, or scholarly support of your proposal and analysis?

· Did you use a combination of quantitative and qualitative evidence?

· Did you format your citations according to current APA style?

1

3
Business Case for a New Economic Opportunity Scoring Guide

CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED

Analyze the opportunities and risks relevant to a proposed economic initiative.

Does not identify opportunities and risks relevant to a proposed economic initiative.

Fails to analyze some relevant opportunities or risks, or fails to compare opportunities to risks.

Analyzes the opportunities and risks relevant to a proposed economic initiative.

Analyzes the opportunities and risks relevant to a proposed economic initiative, and impartially considers conflicting data and other perspectives.

Propose ethical and culturally sensitive solutions to address the risks associated with an economic initiative to ensure the future security of a care setting.

Does not propose solutions to address the risks associated with an economic initiative to ensure the future security of a care setting.

Proposed solutions are not ethical, not culturally sensitive, not equitable, or fail to sufficiently mitigate identified risks.

Proposes ethical and culturally sensitive solutions to address the risks associated with an economic initiative to ensure the future security of a care setting.

Proposes ethical and culturally sensitive solutions to address the risks associated with an economic initiative to ensure the future security of a care setting, and identifies related assumptions.

Analyze the costs and benefits of a proposed economic initiative over a five- year time horizon.

Does not analyze the costs and benefits of a proposed economic initiative over a five- year time horizon.

Attempts analysis, but misinterprets or fails to complete the template, or fails to create recommendations related to the cost- benefit analysis.

Analyzes the costs and benefits of a proposed economic initiative over a five- year time horizon.

Analyzes the costs and benefits of a proposed economic initiative over a five-year time horizon; identifies knowledge gaps, unknowns, missing information, unanswered questions, or areas of uncertainty (where further information could improve the analysis).

Propose potential ways to keep costs under control while maximizing the benefits of an economic initiative and ensuring that it remains ethical and culturally equitable.

Does not propose potential ways to keep costs under control while maximizing the benefits of an economic initiative and ensuring that it remains ethical and culturally equitable.

Cost control proposal is impractical or fails to consider relevant effects on benefits, ethics, or equity.

Proposes potential ways to keep costs under control while maximizing the benefits of an economic initiative and ensuring that it remains ethical and culturally equitable.

Proposes potential ways to keep costs under control while maximizing the benefits of an economic initiative and ensuring that it remains ethical and culturally equitable; impartially evaluates pros and cons of cost containment.

Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a report.

Does not attempt to justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a report.

Attempts to justify the relevance and value of evidence used to support recommendations, but justification lacks logic or clarity.

Justifies the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a report.

Justifies the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a report; suggests criteria that could be used to evaluate the evidence.

Communicate a business case in a

Does not communicate a

Communication is not consistently clear,

Communicates a business case in a

Communicates a business case in a

©1998-2017 HealthWyse LLC 1 of 2 Business Case for a New Economic…

CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED

logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.

business case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.

logically structured, or concise; errors in grammar, punctuation, or spelling distract from the message.

logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.

logically structured, clear, concise, and persuasive manner; grammar, punctuation, and spelling are without errors.

Effectively support a report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Does not effectively support a report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Data or sources lack relevance, or citations or references are incorrectly formatted.

Effectively supports a report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Effectively supports a report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style. Citations are free from all errors.

©1998-2017 HealthWyse LLC 2 of 2 Business Case for a New Economic…
The Market for Health Insurance

Production Function

Identifies how various inputs can be combined and transformed into a final output.

Diseconomies of Scale

An increase in all inputs results in a less than proportionate increase in output. A state which occurs when long-run average costs increase to the point where inefficiency results.

Increasing Returns

Occurs when an increase in all inputs results in a more than proportionate increase in output.

Cost Function

A relationship that measures the total costs of a particular provision of services.

Community Rating

Applies when each member of an insurance pool pays the same premium per person or per family for the same coverage.

Adverse Selection

Exists when people with high risk health-related characteristics increase the total cost of health insurance provided.

Experience Rating

Occurs when insurance companies base premiums on past levels of payouts, which is often done for car or homeowners insurance.

Private Insurance

Usually supplied by providers for profit, although it can also be offered by public bodies or by nonprofit organizations.

Moral Hazard

Refers to the risk of an individual’s behavior being influenced by potential financial gain.

Managed Care Organizations

Groups providing coordination and delivery of services to improve quality and outcomes while containing costs. These types of plans typically involve contractual arrangements with providers, and enrollment on behalf of consumers.

Social Insurance

A plan in which taxpayers (either individual or corporate) fund health care services which are distributed by the government.

The Market for Health Insurance

Production Function

Identifies how various inputs can be combined and transformed into a final output.

Diseconomies of Scale

An increase in all inputs results in a less than proportionate increase in output. A state which occurs when

long

run average costs increase to the poi

nt where inefficiency results.

Increasing Returns

Occurs when an increase in all inputs results in a more than proportionate increase in output.

Cost Function

A relationship that measures the total costs of a particular provision of services.

Community Rat

ing

Applies when each member of an insurance pool pays the same premium per person or per family for the

same coverage.

Adverse Selection

Exists when people with high risk health

related characteristics increase the total cost of health insurance

provided.

Experience Rating

Occurs when insurance companies base premiums on past levels of payouts, which is often done for car or

homeowners insurance.

Private Insurance

Usually supplied by providers for profit, although it can also be offered by public bodies or by nonprofit

organizations.

Moral Hazard

Refers to the risk of an individual’s behavior being influenced by potential financial gain.

Managed Care Organizations

G

roups providing coordination and delivery of services to improve quality and outcomes while containing

costs. These types of plans typically involve contractual arrangements with providers, and enrollment on

behalf of consumers.

Social Insurance

A plan in

which taxpayers (either individual or corporate) fund health care services which are distributed

by the government.

The Market for Health Insurance

Production Function

Identifies how various inputs can be combined and transformed into a final output.

Diseconomies of Scale

An increase in all inputs results in a less than proportionate increase in output. A state which occurs when

long-run average costs increase to the point where inefficiency results.

Increasing Returns

Occurs when an increase in all inputs results in a more than proportionate increase in output.

Cost Function

A relationship that measures the total costs of a particular provision of services.

Community Rating

Applies when each member of an insurance pool pays the same premium per person or per family for the

same coverage.

Adverse Selection

Exists when people with high risk health-related characteristics increase the total cost of health insurance

provided.

Experience Rating

Occurs when insurance companies base premiums on past levels of payouts, which is often done for car or

homeowners insurance.

Private Insurance

Usually supplied by providers for profit, although it can also be offered by public bodies or by nonprofit

organizations.

Moral Hazard

Refers to the risk of an individual’s behavior being influenced by potential financial gain.

Managed Care Organizations

Groups providing coordination and delivery of services to improve quality and outcomes while containing

costs. These types of plans typically involve contractual arrangements with providers, and enrollment on

behalf of consumers.

Social Insurance

A plan in which taxpayers (either individual or corporate) fund health care services which are distributed

by the government.
THE MARKET FOR HEALTH INSURANCE

Production Function

Identifies how various inputs can be combined and transformed into a final output.

Diseconomies of Scale

An increase in all inputs results in a less than proportionate increase in output. A state which occurs

when long-run average costs increase to the point where inefficiency results.

Increasing Returns

Occurs when an increase in all inputs results in a more than proportionate increase in output.

Cost Function

A relationship that measures the total costs of a particular provision of services.

Community Rating

Applies when each member of an insurance pool pays the same premium per person or per family for

the same coverage.

Adverse Selection

Exists when people with high risk health-related characteristics increase the total cost of health insurance

provided.

Experience Rating

Occurs when insurance companies base premiums on past levels of payouts, which is often done for car

or homeowners insurance.

Private Insurance

Usually supplied by providers for profit, although it can also be offered by public bodies or by nonprofit

organizations.

Moral Hazard

Refers to the risk of an individual’s behavior being influenced by potential financial gain.

Managed Care Organizations

Groups providing coordination and delivery of services to improve quality and outcomes while containing

costs. These types of plans typically involve contractual arrangements with providers, and enrollment on

behalf of consumers.

Social Insurance

A plan in which taxpayers (either individual or corporate) fund health care services which are distributed

by the government.

CREDITS Subject Matter Expert:

Interactive Design:

Darleen Barnard

Tara Schiller

©1998-2017 HealthWyse LLC 1 of 2 The Market for Health Insurance…

Instructional Designer:

Project Manager:

Sherryl Stern

Julie Greunke

L icensed under a Crea t ive Commons Att r ibut ion 3 .0 L icense .

©1998-2017 HealthWyse LLC 2 of 2 The Market for Health Insurance…
Overview

In this assessment, you will report on risk and mitigation, and the costs and benefits of a proposed initiative.

As a master’s-level health care practitioner, you are expected to consider a number of factors when analyzing the feasibility of a new initiative. For example, you need to keep in mind the various types of risk (such as patient safety, physical plant, financial, or reputation), as well as the present and future value of the service line or economic opportunity into which you are investing resources. You also must balance the competing considerations of your ethical and moral responsibility to provide quality care to patients and populations, while also protecting your care setting’s assets and economic viability in the near and long terms.

Note: Complete the assessments in this course in the order in which they are presented.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

· Competency 1: Analyze the effects of financial and economic factors (such as cost-benefit, supply and demand, return on investment, and risks) in a health care system on patient care, services offered, and organizational structures and operation.

1. Analyze the opportunities and risks relevant to a proposed economic initiative.

1. Analyze the costs and benefits of a proposed economic initiative over a five-year time horizon.

. Competency 2: Develop ethical and culturally equitable solutions to economic problems within a health care organization in an effort to improve the quality of care and services offered.

2. Propose potential ways to keep costs under control while maximizing the benefits of an economic initiative and ensuring that it remains ethical and culturally equitable.

. Competency 3: Justify the qualitative and quantitative information used to guide economic decision making to stakeholders and colleagues.

3. Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence used to support recommendations throughout a report.

. Competency 4: Develop ethical and culturally equitable economic strategies to address dynamic environmental forces and ensure the future security of an organization’s resources and its ability to provide quality care.

4. Propose ethical and culturally sensitive solutions to address the risks associated with an economic initiative to ensure the future security of a care setting.

. Competency 5: Apply various communication methods in order to clearly, effectively, and efficiently relate information to stakeholders and colleagues related to economic data, findings, and strategies.

5. Communicate a business case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.

5. Effectively support a report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Context

To support your work on this assessment, take time to read the contents of Assessment 2 Context [DOC]. Attached

Questions to Consider

As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as part of your assessment.

. What kinds of quantitative data can support proposals for change in a health care setting? What kinds of qualitative data can do so?

. What are the five different types of comparative economic analysis?

. What are some realistic and feasible recommended alternatives for health care issues and problems that currently impact your work? What would be the costs of pursuing those alternatives? What would be the benefits?

. When and how are the following methods for valuation best used?

9. Human capital.

9. Risk preference.

9. Contingent valuation.

9. Cost-benefit ratio.

Suggested Resources

The resources provided here are optional. You may use other resources of your choice to prepare for this assessment; however, you will need to ensure that they are appropriate, credible, and valid.

. Guiding Questions: Business Case for a New Economic Opportunity [DOC]. Attached

. Cost-Benefit Analysis Template [XLSX]. Attached

Capella Multimedia

This interactive exercise provides an overview of the health insurance market:

. Transcript attached .

Library Resources

This resource addresses the cost and benefits of medical interventions:

. Hauber, A. B., Fairchild, A. O., & Johnson, F. R. (2013). Quantifying benefit-risk preferences for medical interventions: An overview of a growing empirical literature. Applied Health Economics and Health Policy, 11(4), 319–329.

Internet Resources

These resources provide data that will help you complete your assessment:

. Centers for Disease Control and Prevention. (n.d.). Part III: Programmatic cost analysis [PDF]. Retrieved from www.cdc.gov/dhdsp/programs/spha/economic_evaluation/docs/podcast_iii.pdf

. Centers for Disease Control and Prevention. (n.d.). Part IV: Benefit-cost analysis [PDF]. Retrieved from http://www.cdc.gov/dhdsp/programs/spha/economic_evaluation/docs/podcast_iv.pdf

. Centers for Disease Control and Prevention. (n.d.). Part V: Cost-effectiveness analysis [PDF]. Retrieved from http://www.cdc.gov/dhdsp/programs/spha/economic_evaluation/docs/podcast_v.pdf

This resource provides valuable insight into writing a cost benefit analysis:

. Plowman, N. (2014). Writing a cost benefit analysis [Blog post]. Retrieved from http://www.brighthubpm.com/project-planning/58181-writing-a-cost-benefit-analysis/

· https://courserooma.capella.edu/images/ci/icons/generic_updown.gifAssessment Instructions

In this assessment, you will conduct a risk and mitigation analysis and cost-benefit analysis and report on your findings.

Scenario

The senior management of your care setting has reviewed your Executive Brief: Proposal of a New Economic Opportunity and has decided that is has merit. As a result, you have been asked to take a more detailed look at the feasibility and cost-benefit considerations of implementing your proposed economic initiative over the next five years. The senior management is looking for a 3–5 page report that builds a business case for your economic initiative by analyzing ways to mitigate the risks associated with your original proposal and a completed cost-benefit analysis using the Cost-Benefit Analysis Template included in the Resources.

Directions

You have been asked to ensure that your report addresses the following. Note: The bullet points below correspond to grading criteria in the scoring guide. Be sure your work is, at minimum, addressing each of the bullets below. You may also want to read the scoring guide and the Guiding Questions: Business Case for a New Economic Opportunity document to better understand the performance levels that relate to each grading criterion:

Part 1: Risk and Mitigation Analysis

. Analyze the opportunities and risks relevant to your proposed economic initiative.

. Propose ethical and culturally sensitive solutions to address the risks associated with your economic initiative to ensure the future security of your care setting.

Part 2: Cost-Benefit Analysis

. Analyze the costs and benefits of your proposed economic initiative over a five-year time horizon.

. Propose potential ways to keep costs under control while maximizing the benefits of your economic initiative and ensuring that it remains ethical and culturally equitable.

Address Generally Throughout Business Case

. Justify the relevance and value of the quantitative and qualitative economic, financial, and scholarly evidence you used to support your recommendations throughout your report.

. Communicate your business case in a logically structured and concise manner, writing content clearly with correct use of grammar, punctuation, and spelling.

. Effectively support your report with relevant economic data and scholarly sources, correctly formatting citations and references using current APA style.

Additional Requirements

. Length: 3–5 double-spaced, typed pages. Your paper should be succinct yet substantive.

8. Be sure to include a title page and reference list.

8. Your completed Cost-Benefit Analysis Template should be included as an appendix within your final business case submission.

. APA formatting: Resources and citations are formatted according to current APA style.

. Resources: Cite a minimum of 4–5 authoritative and scholarly resources. Be sure to include specific economic data and support as part of your cited resources

Overview

In this assessment, you will report on risk and mitigation, and the costs and

benefits of a proposed initiative.

As a master’s

level health care practitioner, you are expected to consider a number

of factors when analyzing the feasibility of a

new initiative. For example, you

need to keep in mind the various types of risk (such as patient safety, physical

plant, financial, or reputation), as well as the present and future value of the

service line or economic opportunity into which you are inves

ting resources. You

also must balance the competing considerations of your ethical and moral

responsibility to provide quality care to patients and populations, while also

protecting your care setting’s assets and economic viability in the near and long

te

rms.

Note

: Complete the assessments in this course in the order in which they are

presented.

By successfully completing this assessment, you will demonstrate your

proficiency in the following course competencies and assessment criteria:

·

Competency 1

: Analy

ze the effects of financial and economic factors (such as

cost

benefit, supply and demand, return on investment, and risks) in a health care

system on patient care, services offered, and organizational structures and

operation.

o

Analyze the opportunities a

nd risks relevant to a proposed economic initiative.

o

Analyze the costs and benefits of a proposed economic initiative over a five

year

time horizon.

·

Competency 2

: Develop ethical and culturally equitable solutions to economic

problems within a health care

organization in an effort to improve the quality of

care and services offered.

o

Propose potential ways to keep costs under control while maximizing the benefits

of an economic initiative and ensuring that it remains ethical and culturally

equitable.

·

Compet

ency 3

: Justify the qualitative and quantitative information used to guide

economic decision making to stakeholders and colleagues.

o

Justify the relevance and value of the quantitative and qualitative economic,

financial, and scholarly evidence used to sup

port recommendations throughout a

report.

·

Competency 4

: Develop ethical and culturally equitable economic strategies to

address dynamic environmental forces and ensure the future security of an

organization’s resources and its ability to provide quality care.

o

Propose ethical and culturally sensitive solution

s to address the risks associated

with an economic initiative to ensure the future security of a care setting.

Overview

In this assessment, you will report on risk and mitigation, and the costs and

benefits of a proposed initiative.

As a master’s-level health care practitioner, you are expected to consider a number

of factors when analyzing the feasibility of a new initiative. For example, you

need to keep in mind the various types of risk (such as patient safety, physical

plant, financial, or reputation), as well as the present and future value of the

service line or economic opportunity into which you are investing resources. You

also must balance the competing considerations of your ethical and moral

responsibility to provide quality care to patients and populations, while also

protecting your care setting’s assets and economic viability in the near and long

terms.

Note: Complete the assessments in this course in the order in which they are

presented.

By successfully completing this assessment, you will demonstrate your

proficiency in the following course competencies and assessment criteria:

 Competency 1: Analyze the effects of financial and economic factors (such as

cost-benefit, supply and demand, return on investment, and risks) in a health care

system on patient care, services offered, and organizational structures and

operation.

o Analyze the opportunities and risks relevant to a proposed economic initiative.

o Analyze the costs and benefits of a proposed economic initiative over a five-year

time horizon.

 Competency 2: Develop ethical and culturally equitable solutions to economic

problems within a health care organization in an effort to improve the quality of

care and services offered.

o Propose potential ways to keep costs under control while maximizing the benefits

of an economic initiative and ensuring that it remains ethical and culturally

equitable.

 Competency 3: Justify the qualitative and quantitative information used to guide

economic decision making to stakeholders and colleagues.

o Justify the relevance and value of the quantitative and qualitative economic,

financial, and scholarly evidence used to support recommendations throughout a

report.

 Competency 4: Develop ethical and culturally equitable economic strategies to

address dynamic environmental forces and ensure the future security of an

organization’s resources and its ability to provide quality care.

o Propose ethical and culturally sensitive solutions to address the risks associated

with an economic initiative to ensure the future security of a care setting.

 
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