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Chapter 10 - Healthcare Decision-Making for Cost-Effectiveness

Published online by Cambridge University Press:  13 July 2023

Ramalingam Shanmugam
Ramalingam Shanmugam
Affiliation:
Texas State University, San Marcos
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Summary

Economic value and cost-effectiveness are integral parts of a sound healthcare operation. Cost-effectiveness focuses on quality-adjusted life years (QALY). A cost-effectiveness analysis (CEA) aims to attain maximum health benefits with limited consumption of resources. The cost is, of course, a value gained from the use of resources elsewhere.

The benefits that exist in one program if money is shifted to it from another program are the opportunity cost. The cost of drugs, medicines, staff salaries, equipment, and patients’ out-of-pocket expense are direct costs. Productivity costs include losses due to time. Indirect costs include pain, suffering, adverse outcomes, and so forth.

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Information
Data-Guided Healthcare Decision Making , pp. 244 - 285
Publisher: Cambridge University Press
Print publication year: 2023

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References

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