Cost Benefit Analysis and Cost Effective Analysis, Coursework Example

Sommer’s article points out that scientific evidence provide a strong foundation for healthcare policies especially in terms of developing a sense of control on the emerging health situations in the community. In helping out regarding the creation of such policies, the administration usually chooses between Cost Benefit Analysis and Cost Effective Analysis as means of deciding what would be best to take into account especially in determining the practical resolutions to the current issues on healthcare that the community faces.

Relatively, it could be realized that with Cost Benefit Analysis, the administrators would have to measure how much would be used for the creation or production of the medications or services that are needed to respond to the issue. The amount of the monetary resource to be used for the matter shall be measured in par with the benefit that the resolutions would have on the problems being dealt with. On the other hand, Cost Effective Analysis shall provide a better sense of understanding how the allotted budget would be better managed and allocated towards the support needed for each process of developmental resolution that is to be proposed to answer to the situation being observed. As mentioned by Sommer, “health policy is made in the public arena… and that…the process is subject to a complex array of considerations and influences” (S4); from this line, it could be realized how Sommer understands the basic process of healthcare policy making and how it is supposed to affect the overall healthcare status of a community.

Basically, public policy development with regards healthcare operations are undergone conscientiously through the measurement of cost versus the benefits that the resolutions impose on the situation that the public aims to give attention to. The administrators strongly use effective measurements of such elements to make sure that the budget allotted for healthcare would be used efficiently thus benefiting a greater number of individuals in the public; especially in relation to resolving healthcare issues that might affect a huge number of the community’s population.

References

Sommer, A. (2001). How public health policy is created: scientific process and political reality. American Journal of Epidemiology, 154(12), S4-S6. doi: 10.1093/aje/154.12.54.

Bond J. & Bond S. (1994). Sociology and Health Care. Churchill Livingstone.