Hello Grant Good insights and descriptions provided about CEA. Why do you think it is critical for us as healthcare managers to be full aware of the benefits and drawbacks of the CEA process? Can we be a change agent when this tool is needed to improve health outcomes?

<<< Replied to post below >>> Authored on: Jun 6, 2022 5:51 AM Subject: Discussion 5 Cost-effectiveness Cost-effectiveness analysis is a strategy used to examine the costs and health outcomes of one or more interventions by estimating how much it costs to gain a unit of an outcome with that of losing a unit. Cost-effectiveness analysis is often used in different contexts when making decisions in an organization. Although Cost-effectiveness analysis is essential when used to make a decision, it is essential to note that it has pros and cons. Understanding the pros and cons is crucial in ensuring that its application is beneficial. This discussion post intends to discuss the pros and cons of Cost-effectiveness analysis. Further, it will also explore and determine the most influential metrics for evaluating the effectiveness. Pros of Cost-effectiveness Cost-effective can be highly beneficial when comparing different interventions for the same disease. It is often valuable for researchers who intend to compare different programs to solve the same problem, compare a particular program for a specific people, and compare different interventions for varying diseases (Shields et al., 2018). The cost-effective analysis is beneficial, especially when comparing different programs that focus on the same health condition or goal. The method is also considered beneficial when seeking interventions that address different health conditions and the associated risk factors. When resources are insufficient in a healthcare organization, it is often crucial that the resources available are utilized in the most cost-effective interventions possible (Shields et al., 2018). For instance, assuming a healthcare organization has two million dollars and two options for spending the money. The first option is investing the money to maximize the Hib vaccination for children to help save 20-900 lives. The second option is to invest the same amount of money to increase vaccinations for measles for children and help save 900-70000 lives. According to the cost-effective analysis, the best option will be the second option as it is the most beneficial way of resource allocation. The measure of healthcare gain or benefit is the total number of lives saved. It is the best intervention because it mitigates a high number of deaths. The incremental cost-effectiveness ratio (ICER) is the most influential metric that can help determine the cost-effective analysis (Kim et al., 2020). This metric is used to evaluate the change in relative costs and health units as the effects of a particular health care intervention change. Cons of Cost-effectiveness Although Cost-effectiveness analysis is significant or crucial when used in a healthcare organization, it is essential to note that it is associated with the following cons. First, healthcare organizations often differ in how they carry out their calculations. For instance, some studies value lives on the same scale regardless of age. The adult, middle-aged, and the infant are weighted equally. Other healthcare organizations consider the number of years an individual has to live (Jayasundera et al., 2022). For example, helping stop diarrhea among infants is considered more beneficial than helping an older individual recover from a stroke. Cost-effectiveness analysis is also influenced by prices which often differ substantially. Additionally, the method also relies on the scope of the costs, among other additional costs the researcher may have chosen to consider. In summary, cost-effective analysis is a powerful instrument for helping to compare different interventions as well as ensuring valuable resources are well allocated appropriately. However, because limitations and flaws can increase, it is crucial to carefully review every factor included in the calculation and consider other possibly influential factors.