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Optimizing Budget Allocation for Digital Health Investments Using Metaheuristic Algorithms: A Cost-Impact Analysis
Faruk Dayi1, Aylin Erdogdu2, Yusuf Esmer3
1Faculty of Economics and Administrative Sciences, Kastamonu University, 37160 Kastamonu, Türkiye.
Optimizing digital health investments requires balancing costs and impacts. The Adaptive Impact-Cost Optimization Theory (AICOT) framework helps policymakers allocate resources effectively for improved public health outcomes and financial sustainability.
Area of Science:
- Health Informatics
- Public Health Policy
- Computational Health Science
Background:
- Public health systems are increasingly adopting digital technologies.
- Policymakers face challenges in resource allocation for digital health investments due to uncertainty and dynamic impacts.
- Effective investment strategies are crucial for improving accessibility, efficiency, and patient outcomes.
Purpose of the Study:
- To introduce the Adaptive Impact-Cost Optimization Theory (AICOT) framework for optimizing digital health investment portfolios.
- To enable structured evaluation of digital health investments under uncertainty using a hybrid approach.
- To identify optimal investment portfolios across different fiscal scenarios.
Main Methods:
- Developed the Adaptive Impact-Cost Optimization Theory (AICOT), integrating fuzzy logic and genetic algorithms.
- Defined the Investment Priority Score (IPS) based on cost, impact, and feasibility.
- Utilized a fuzzy inference system for qualitative-to-quantitative score conversion and optimization techniques for portfolio selection.
- Analyzed data from 15 OECD countries (2018-2024) and conducted sensitivity analyses.
Main Results:
- Blended investment strategies (routine digital health tools + pandemic infrastructures) showed the highest resilience-adjusted efficiency.
- Pandemic surveillance consistently emerged as a top priority, even under increased cost conditions.
- The AICOT model demonstrated adaptability to cross-country heterogeneity and varying digital maturity levels.
Conclusions:
- The AICOT framework offers a transparent, policy-relevant decision-support tool for efficient resource allocation in digital health.
- Implementation of AICOT can reduce unnecessary expenditures and enhance long-term financial sustainability.
- The framework supports global health objectives, including Universal Health Coverage and Sustainable Development Goal 3.
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