Application of cost-benefits analysis (CBA) in Hospital Setting

Introduction

“Cost-benefits analysis measures the benefits and costs of projects in money terms: this often requires that we place dollar values on years of life or improvements in health and well-being” (Folland, Goodman, & Stano, 2010 Pp 67). Studies related to the post-acute rehabilitation of the traumatically brain injured (TBI) have centered on quality-of-life issues. There has been little attention paid to cost/benefit relationships. The study showed a statistically important benefit and cost savings, over time, for those patients receiving post-acute rehabilitation. These benefits are in addition to improved quality-of-life benefits.
Another cost-benefits analysis in the hospital setting is the implementation of electronic medical record (EHR). Electronic medical record systems improve the quality of patient care and decrease medical errors, but their financial effects have not been as well documented. Electronic medical record systems have the potential to provide substantial benefits to physicians, clinic practices, and health care organizations. These systems can facilitate workflow and improve the quality of patient care and patient safety.

Cost and benefit of post-acute rehabilitation in hospital
“Post-acute rehabilitation services may be provided to some patients at the same or lesser cost when compared to the cost of the living status category prior to admission” (Ashley & Kirch, 1990). It may, therefore, be of little to no financial danger to provide these services. This study proposes that there is a huge likelihood of disability reduction and cost savings over the long term.

Cost of implementing Electronic medical records
There are two categories of costs associated with electronic medical record implementation: system costs and induced costs. “System costs include the