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Cost analysis: concepts and application.

C A Brosnan1, J M Swint

  • 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
PubMed
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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.

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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.