When deciding on the best health intervention to implement, a cost-based analysis is done on the interventions. A cost-based analysis is a systematic approach for assessing the strengths and weaknesses of alternatives to establish the best alternative to achieve benefits (Hoomans & Severens, 2014). The four types of cost-based analysis include cost-consequences, cost-effectiveness, cost-utility, and cost-benefit analysis. A cost-consequence analysis is utilized in making decisions in strategies that have different outcomes (Hoomans & Severens, 2014). Cost-effectiveness analysis compares the costs with the natural health outcomes including a number of cases prevented and life-years saved. Used in making decisions on strategies which produce common outcomes (Hoomans & Severens, 2014). Cost-utility analysis entails expressing the costs and benefits as the cost per a standardized morbidity and mortality outcomes, for example, the quality-adjusted-life-year (measure of life quality and survival). Used in making decisions on interventions that produce different health outcomes. Cost-benefit analysis is the common cost-based analysis used in making decisions on interventions with different outcomes. All the costs and benefits are converted into a monetary unit (Hoomans & Severens, 2014).
An example of a program where cost-based analysis would be used is the Diabetes Prevention Program. In this program, the four types of cost-based analysis can be used in establishing the best interventions. The cots-consequences analysis can be used to establish the costs associated with each of the interventions in the Diabetes Prevention program and deciding on the intervention to implement (Rabarison et al., 2015). The cost-effectiveness analysis can be used in deciding on the interventions in the Diabetes Prevention program based on the number of diabetes cases prevented and life-years saved upon implementation of each of the interventions. Also, the cost-benefit analysis would be used in comparing the costs of the interventions in the program with the benefits in monetary units. As such, cost-benefit analysis would establish the best interventions in the program (Rabarison et al., 2015). In conclusion, cost-based analysis is important to determine the best interventions to pursue.
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