A Cost-Effective Analyses (CEA) is an example of one of the established processes used by finance managers in healthcare. By using a set of tools related to different types of program costs, managers can evaluate and/or compare programs so that informed choices can be made. CEAs assist managers in determining which program will provide quality outcomes when compared to the costs the organization would incur. Although this sounds like a simple process, there are many variables to consider.
Step 1: Research and discuss the following terms in a 1- to 2-page document:
Opportunity cost
Initial costs
Continuing costs
Induced costs
Averted costs
Fixed costs
Variable costs
Step 2: Using one of the studies listed below, research the topics and then formulate two processes to achieve positive outcomes. Then, compare the costs of the two processes by conducting a CEA. You may have to create control and outcome numbers, as well as estimate the costs of each component of the CEA. Use of a comparison table is encouraged. See an example below:
How to do a basic cost-effectiveness analysis. (n.d.). Retrieved from http://www.tools4dev.org/resources/how-to-do-a-basic-cost-effectiveness-analysis/
Increase the number of children receiving an annual flu vaccine in a pediatric clinic.
Decrease the number of “no-show” patients with appointments in a physician’s office practice.
Decrease resident falls in a 100-bed nursing home.
Decrease medication errors in a 500-bed acute care hospital.
Decrease wait time in a hospital emergency department (ED).
Step 3: Finally, from research, how can the program’s quality outcomes be measured? No calculations are necessary.
To support your work, use your course and textbook readings, credible Internet sources, and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.
Submission Details:
Your assignment should be addressed in a 4–5-page document, not including your title and reference page. Much depth and discussion from thorough research is needed to complete this heavily weighted assignment.
