Running head: COST-BENEFIT ANALYSIS1Cost-Benefit AnalysisName:Course:Instructor:Date:COST-BENEFIT ANALYSIS2IntroductionCost-benefit analysis is a technique that is essential to compare the costs of acquiring andmaintaining a project to the benefits it brings to an organization or person. The common metricused is a monetary value. In this scenario, it enables the calculation of the net cost or benefitassociated with the purchase and maintenance of an MRI machine.Opportunity CostThe opportunity cost of an intervention is what is foregone as a result of adopting a newintervention. The analysis of an opportunity cost in health care is used in suggestions such ashow much good health would be lost if more money was allocated to a certain interventioninstead of another. it analyses the most and least productive current investment in terms of healthfor any new resources. The concept of opportunity cost in health care addresses these scenarioswithout losing the main purpose of improving health (Spiller, 2015).The opportunity costs of medical choices can be shown by cost-effectiveness studies and ratios.This is most commonly shown in dollars per year of life saved. Cost-effectiveness ratio can beused to directly focus on the alternative health benefits of various medical interventions,therefore, on opportunity cost. This is by calculating the number of life years that could beattained with a fixed amount of money (Spiller, 2015).Alignment of the Cost-Ben ...
To Order an Original Plagiarism Free Paper on the Same Topic Click Here
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.
