Cost Effectiveness Analysis

  1. How to best use available resources in a world where desires, if not needs, always exceed the capacity to fulfill them.
    Concern of Economics
  2. Refers to the concept that use of resources one place precludes their use elsewhere.
    Opportunity Cost
  3. Opportunity cost is concerned with _____ _______ ______ rather than with mere ______ _______.
    real resource consumption, financial effects
  4. Thus, the _______ of a particular expenditure is the best alternative use of those funds.
    real cost
  5. The opportunity cost concept suggests that it is not enough to do something useful with the resources available. Action with a net positive effect is still wasteful if the foregone alternative would have had a _____ value.
  6. Where can the greatest benefit be obtained for a given expenditure? - is a question of
    resource allocation
  7. Cost effectiveness is purely ________.
  8. Cost-effectiveness is ________ regarding goal selection.,
    value neutral
  9. The measure of efficiency in cost-effectiveness analyses.
    Cost effectiveness ratio
  10. What is the cost effectiveness ratio?
    • Program Costs
    • health-related outcome (lives saved)

    • (Cost of program)-(medical and other costs saved)
    • Health benefits
  11. Equation for incremental analysis?
    • C1-C2
    • E2-E1

    Shows what each additional symptom free patient costs.
Card Set
Cost Effectiveness Analysis
cost effect