14. Maximizing Health Benefits: A Healthcare Business’s Uncertainty and Assumptions
Cost-Effectiveness Analysis (CEA) evaluates diverse interventions to maximize health benefits by comparing costs and outcomes, helping policymakers allocate scarce resources. Cost-Utility Analysis (CUA) assesses interventions using quality-adjusted life years (QALYs), useful when budgets are constrained. Discounting adjusts future costs and benefits to present values, reflecting society’s preference for immediate rewards. Cost-Benefit Analysis (CBA) compares policies or projects by quantifying their costs and benefits in monetary terms, though it's challenging for intangible programs. CEA is widely used in health policy, but its reliability depends on data quality and sensitivity analyses to address variations and uncertainties.