1 / 10

Cost-Benefit Analysis

Cost-Benefit Analysis. Research Methods DIE 4564. Cost-Benefit Analysis. Simple ways of defining cost-benefit analysis – All inputs and outcomes of a proposed alternative can be reduced to a common unit of impact (namely dollars), data can be aggregated and compared.

drea
Download Presentation

Cost-Benefit Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Cost-Benefit Analysis Research Methods DIE 4564

  2. Cost-Benefit Analysis Simple ways of defining cost-benefit analysis – All inputs and outcomes of a proposed alternative can be reduced to a common unit of impact (namely dollars), data can be aggregated and compared. • People willing to pay dollars for something – benefit • Pay to avoid – cost

  3. Cost-Benefit Analysis What can analyses can tell you: • Cost analyses can provide estimates of what a program’s costs and benefits are likely to be, before it is implemented • Cost analyses may improve understanding of program operation, and tell what levels of intervention are most cost-effective. • Cost analyses may reveal unexpected cost.

  4. Cost-Benefit Analysis What cost analyses cannot tell you: • Whether or not the program is having a significant net effect on the desired outcomes. (analyses may be considered an extension of an impact or outcome evaluation) • Whether the least expensive alternative is always the best alternative. (one factor to consider – need to have some other way of deciding which factors take priority)

  5. Cost-Benefit Analysis Comparative Assessment – benefits anticipated from project • Decide whether to undertake a project or decide of several projects to undertake • Frame appropriate project objectives • Develop appropriate before and after measures of project success • Prepare estimates of the resources required to perform the project work

  6. Cost-Benefit Analysis Consider costs for all phases of the projects • Potential cost of not doing the project • Potential cost if the project fails • Opportunity costs (potential benefits if funds are spent successfully performing a different project) Weigh future values • How far into the future you look to identify benefits • On which assumptions you base your analysis

  7. Cost-Benefit Analysis Asking – Your project is to improve staff moral • Associated benefits • Reduce employee turnover rate • Increase employee productivity • Fewer employee absences • Decrease or lessen formal grievances

  8. Cost-Benefit Analysis Asking – Your project is to improve Food Service Operations • Associated benefits • Improve patient/customer satisfaction scores • Improve the quality of food quality • Reduce operational costs • Reduce labor cost • Improve employee moral

  9. Cost-Benefit Analysis Asking – Your project is to improve Clinical Services • Associated benefits • Expand outpatient clinical counseling services • Increase clinical staffing by one FTE • Supporting needs of the community • Improve patient satisfaction scores

  10. Cost-Benefit Analysis Cost-Benefit Analysis • Also called Economic Evaluation Cost Allocation Efficiency Assessment Cost =Effectiveness Analysis

More Related