What is defined as comparing the costs of a specific treatment with the dollar value of the benefits received?

What is defined as comparing the costs of a specific treatment with the dollar value of the benefits received?

• A. Cost-minimization analysis
• B. Cost-effectiveness analysis
• C. Cost-benefit analysis
• D. Cost-utility analysis

Answer: (C)

The correct answer is cost-benefit analysis. This method is specifically focused on comparing the costs associated with a treatment to the monetary value of the benefits that the treatment provides. Essentially, it allows for a straightforward financial comparison, determining whether the benefits outweigh the costs, which is crucial for decision-making in healthcare management and policy. Cost-minimization analysis assesses the least costly option when the outcomes of the treatments are demonstrated to be equivalent, thus it does not focus on qualitative benefits. Cost-effectiveness analysis, on the other hand, weighs the costs of a treatment against the health outcomes it produces, usually measured in natural units like years of life saved or improvement in health status, rather than monetary terms. Cost-utility analysis extends cost-effectiveness by incorporating quality-adjusted life years (QALYs) to frame outcomes in terms of both cost and utility, which does not align with just dollar value comparisons. Each of these methods serves a distinct purpose, but cost-benefit analysis remains unique in its monetary focus.

The correct answer is cost-benefit analysis. This method is specifically focused on comparing the costs associated with a treatment to the monetary value of the benefits that the treatment provides. Essentially, it allows for a straightforward financial comparison, determining whether the benefits outweigh the costs, which is crucial for decision-making in healthcare management and policy.

Cost-minimization analysis assesses the least costly option when the outcomes of the treatments are demonstrated to be equivalent, thus it does not focus on qualitative benefits. Cost-effectiveness analysis, on the other hand, weighs the costs of a treatment against the health outcomes it produces, usually measured in natural units like years of life saved or improvement in health status, rather than monetary terms. Cost-utility analysis extends cost-effectiveness by incorporating quality-adjusted life years (QALYs) to frame outcomes in terms of both cost and utility, which does not align with just dollar value comparisons. Each of these methods serves a distinct purpose, but cost-benefit analysis remains unique in its monetary focus.