Increasing role of economic analysis in the health care industry

As the health care industry continues to absorb an ever-larger portion of society's resources, increasing pressure is being placed on the industry to justify its decisions about the outcomes of the services it renders relative to their costs. Emphasis is being shifted from accessibility to and availability of health care to the cost-effective delivery of those services. This focus on cost effectiveness is creating intense pressure on the various segments of the industry to justify their existence as cost-effective providers of services. To demonstrate cost effectiveness, the various segments are searching for tools to assist them. In this article, an outline of a mechanism for evaluating the cost effectiveness of providing physical therapy services is presented.