Is It Worth It?
A cost-benefit analysis (CBA) and cost-effective analysis (CEA) provide valuable information for individuals responsible for financial planning. These tools are also helpful in health care organizations. The principles of CBA and CEA can also be applied to your personal financial decisions.
To prepare for this Discussion, complete the readings in your Learning Resources. Think of a project or program (e.g. creating a new geriatric health center, purchasing a piece of expensive diagnostic equipment, or adding an employee benefit) in a health care setting. Identify all of the primary and secondary benefits of the program. Also identify the direct and indirect costs.
By Day 4, post a comprehensive response to the following:
Provide a brief description of the project or program you selected.
Highlight the primary and secondary benefits of this project. Briefly explain the direct and indirect costs. Are there costs that cannot be quantified? Are there any benefits that cannot be quantified? Why?
As a decision maker, how would you use the CBA and CEA for this project?
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