The process of conducting a CBA involves several steps:
Identify the Objective: Clearly define what the analysis aims to achieve. List Alternatives: Enumerate all possible approaches or interventions. Determine Costs: Calculate all direct and indirect costs associated with each alternative. Estimate Benefits: Quantify the benefits, which can be in terms of improved patient outcomes, reduced hospital stays, etc. Compare Costs and Benefits: Use metrics such as net present value (NPV) or benefit-cost ratio (BCR) to compare options. Make a Decision: Choose the alternative with the most favorable balance of costs and benefits.
