Cost/benefit analysis and capital investment decisions in nuclear cardiology

This paper demonstrates an application of Cost-Benefit Analysis as an aid in capital investment medical decision making. Specifically, a cost-benefit analysis is used to compare three nuclear cardiology instruments (i.e. Nuclear Stethoscope, Mobile Camera/Computer and Fixed Cardiac Computer). The study examined both non-quantitative and quantitative comparative factors. Results of the study show: (1) Conversion of the non-quantitative factors into a numerical system (via medical opinion) greatly delineates the relative merits of each instrument. (2) Simulating the stochastic economic and equipment utilization factors reveals instrument selection to be a function of patient flow and amortization procedures. (3) Adjusting the quantitative assessment of each instrument by the non-quantitative assessment (via the numerical system) aids in the capital investment decision.