1. 1. COST EFFECTIVE ANALYSIS Presented By Mr. Naveena. J H Asst. Professor Subharti Nursing College SVSU , Meerut, UP
2. 2. Direct Nursing Cost Indirect Nursing Cost
3. 3. Scope Cost effectiveness analysis (CEA) used heavily in social programs and projects where identification and quantification of benefits in money terms is not straightforward but, at the same time, the desirability of the activity is not in question. For example, in the case of health care: - What is the best way to prevent heart attacks? - What drugs are most cost effective in the treatment of illness? - What is the least cost way of providing nutrition to poor children? - Which of the programs is most cost effective for AIDS prevention?
4. 4. Formula for Analysis Cost - effectiveness analysis seeks to identify and place currency on the costs of a program. It then relates these costs to specific measures of program effectiveness. Analysts can obtain a program s cost - effectiveness (CE) ratio by dividing costs by what we term units of effectiveness : Cost-Effectiveness Ratio = Total Cost Units of Effectiveness
5. 5. 30 Scale Problem in CEA Lets say there are two mutually exclusive options in the choice of medical diagnostic equipment for a clinic. The first type of machine (A) costs R 50,000 and it can diagnose 200 patients a month. The second option involves more expensive equipment (B), which will cost R 300,000 but could serve up to 1,150 people a month. The CEA results in the selection of the least costly alternative, option A, which costs R 250 per diagnosis. Option B allows to process almost a six-fold higher number of medical tests a month, at cost of R 261 per patient. Unless there is a severe budget constraint for implementation of alternative B, this alternative could be justified even if its average costs are higher than costs of alternative A. This is because the total benefits that alternative B generates are very much larger than the benefits of alternative A. Method Effectiveness (Patients a Month) Cost (Rand) CE Ratio Ranking Alternative A 200 50,000 250 1 Alternative B 1,150 300,000 261 2
6. 6. ACTIVITY: 1: Cost effective Analysis On wound Care FIGURE -1
7. 7. FIGURE -2
8. 8. Cost Comparison: Previous Management vs. Best Practice Previous Care Cost Present Care Cost Nursing labour $9,600.00 Duplex scan $161.30 ($40.00 x 240 visits ) Nursing labour $240.00 Fucidic acid cream $ 240.00 ($40.00 x 6 visits) Gauze bandages $ 360.00 Multi-layer bandage x 4 $100.00 Gloves $ 48.00 Nanocrystalline silver 4x4dressings (x2) $26.00 Dressing trays $6.00 Gloves $1.20 Total $10,248.00 Total (best practice) $534.50 Outcome No healing Outcome Closed wounds Difference in cost: $9,713.50
9. 9. ACTIVITY:2 Cost effective Analysis on Antenatal Visits
10. 10. CONCLUSION A costeffectiveness analysis (CEA) seeks to find the best alternative activity, process, or intervention that minimises resource use to achieve a desired result. Like CostBenefit Analysis, CostEffectiveness Analysis can be used either to assess the expected impacts of alternative policy measures before they are implemented , or to assess the effectiveness of a policy measure that is already in place .