The economic value of an investment in physiotherapy education

A net present value analysis

Research output: Contribution to journalArticleResearchpeer-review

4 Citations (Scopus)

Abstract

Design: A cost-benefit analysis using a net present value (NPV) approach was conducted and reported in Australian dollars. In relation to physiotherapy education, the NPV represents future earnings as a physiotherapist minus the direct and indirect costs in obtaining the degree. Sensitivity analyses were conducted to consider varying levels of experience, public versus private sector, and domestic versus international student fees. Comparable calculations were made for educational investments in medicine and nursing/midwifery. Results: Assuming an expected discount rate of 9.675 , investment in education by domestic students with approximately 34 years of average work experience yields a NPV estimated at 784,000 for public sector physiotherapists and 815,000 for private sector therapists. In relation to international students, the NPV results for an investment and career as a physiotherapist is estimated at 705,000 in the public sector and 736,000 in the private sector. Conclusion: With an approximate payback period of 4 years, coupled with strong and positive NPV values, physiotherapy education in Australia is a financially attractive prospect and a viable value proposition for those considering a career in this field.
Original languageEnglish
Pages (from-to)148 - 154
Number of pages7
JournalJournal of Physiotherapy
Volume61
Issue number3
DOIs
Publication statusPublished - 2015

Cite this

@article{7749aec8f3c44dbf9cca72a6c3e439f1,
title = "The economic value of an investment in physiotherapy education: A net present value analysis",
abstract = "Design: A cost-benefit analysis using a net present value (NPV) approach was conducted and reported in Australian dollars. In relation to physiotherapy education, the NPV represents future earnings as a physiotherapist minus the direct and indirect costs in obtaining the degree. Sensitivity analyses were conducted to consider varying levels of experience, public versus private sector, and domestic versus international student fees. Comparable calculations were made for educational investments in medicine and nursing/midwifery. Results: Assuming an expected discount rate of 9.675 , investment in education by domestic students with approximately 34 years of average work experience yields a NPV estimated at 784,000 for public sector physiotherapists and 815,000 for private sector therapists. In relation to international students, the NPV results for an investment and career as a physiotherapist is estimated at 705,000 in the public sector and 736,000 in the private sector. Conclusion: With an approximate payback period of 4 years, coupled with strong and positive NPV values, physiotherapy education in Australia is a financially attractive prospect and a viable value proposition for those considering a career in this field.",
author = "Rivers, {George Simon} and Jon Foo and Dragan Ilic and Nicklen, {Peter David} and Scott Reeves and Kieran Walsh and Maloney, {Stephen Ryan}",
year = "2015",
doi = "10.1016/j.jphys.2015.05.015",
language = "English",
volume = "61",
pages = "148 -- 154",
journal = "Journal of Physiotherapy",
issn = "1836-9553",
publisher = "Elsevier",
number = "3",

}

The economic value of an investment in physiotherapy education : A net present value analysis. / Rivers, George Simon; Foo, Jon; Ilic, Dragan; Nicklen, Peter David; Reeves, Scott; Walsh, Kieran; Maloney, Stephen Ryan.

In: Journal of Physiotherapy, Vol. 61, No. 3, 2015, p. 148 - 154.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - The economic value of an investment in physiotherapy education

T2 - A net present value analysis

AU - Rivers, George Simon

AU - Foo, Jon

AU - Ilic, Dragan

AU - Nicklen, Peter David

AU - Reeves, Scott

AU - Walsh, Kieran

AU - Maloney, Stephen Ryan

PY - 2015

Y1 - 2015

N2 - Design: A cost-benefit analysis using a net present value (NPV) approach was conducted and reported in Australian dollars. In relation to physiotherapy education, the NPV represents future earnings as a physiotherapist minus the direct and indirect costs in obtaining the degree. Sensitivity analyses were conducted to consider varying levels of experience, public versus private sector, and domestic versus international student fees. Comparable calculations were made for educational investments in medicine and nursing/midwifery. Results: Assuming an expected discount rate of 9.675 , investment in education by domestic students with approximately 34 years of average work experience yields a NPV estimated at 784,000 for public sector physiotherapists and 815,000 for private sector therapists. In relation to international students, the NPV results for an investment and career as a physiotherapist is estimated at 705,000 in the public sector and 736,000 in the private sector. Conclusion: With an approximate payback period of 4 years, coupled with strong and positive NPV values, physiotherapy education in Australia is a financially attractive prospect and a viable value proposition for those considering a career in this field.

AB - Design: A cost-benefit analysis using a net present value (NPV) approach was conducted and reported in Australian dollars. In relation to physiotherapy education, the NPV represents future earnings as a physiotherapist minus the direct and indirect costs in obtaining the degree. Sensitivity analyses were conducted to consider varying levels of experience, public versus private sector, and domestic versus international student fees. Comparable calculations were made for educational investments in medicine and nursing/midwifery. Results: Assuming an expected discount rate of 9.675 , investment in education by domestic students with approximately 34 years of average work experience yields a NPV estimated at 784,000 for public sector physiotherapists and 815,000 for private sector therapists. In relation to international students, the NPV results for an investment and career as a physiotherapist is estimated at 705,000 in the public sector and 736,000 in the private sector. Conclusion: With an approximate payback period of 4 years, coupled with strong and positive NPV values, physiotherapy education in Australia is a financially attractive prospect and a viable value proposition for those considering a career in this field.

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SP - 148

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JO - Journal of Physiotherapy

JF - Journal of Physiotherapy

SN - 1836-9553

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ER -