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Cost analysis: concepts and application
1School of Nursing, University of Texas Health Science Center, Houston, Texas 77030, USA. cbronson@son1.nur.uth.tmc.edu
Public Health Nursing (Boston, Mass.)
|March 17, 2001
Summary
Public health nurses need to understand cost-effectiveness analysis for program planning. This guide explains health economics terms and cost analysis methods, using neonatal screening as an example.
Area of Science:
- Health Economics
- Public Health Nursing
- Healthcare Management
Background:
- Public health nurses face increasing demands for cost justification of care.
- Evaluating the cost-effectiveness of health programs is crucial for community health impact.
- Nurses require foundational knowledge in health economics for effective program management.
Purpose of the Study:
- To define key health economics terms for nurses.
- To discuss standard cost analysis methodologies.
- To illustrate cost analysis with a neonatal screening program example.
Main Methods:
- Definition of fundamental health economics terminology.
- Explanation of standard cost analysis techniques.
- Application of cost analysis principles to a neonatal screening case study.
Main Results:
- Understanding cost analysis empowers nurses in program planning and evaluation.
- Provides a framework for describing, measuring, and valuing cost items in healthcare.
- Demonstrates practical application through a neonatal screening example.
Conclusions:
- Basic knowledge of cost analysis is essential for public health nurses.
- Nurses can actively participate in cost-effective program development and implementation.
- This understanding enhances the impact of community health programs.
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