COST EFFECTIVENESS ANALYSIS
A simple return on investment, ROI, calculation will not
provide needed nor valid insights. However, the use of cost-effectiveness
analysis (CEA) would provide quite useful, valid and actionable information.
CEA uses decision tree models to compare not only cost outcomes but
effectiveness outcomes of various treatments on patient health and even on
future healthcare usage based on various current actions. It can further be used to determine how
effective a set amount of money spent on a particular treatment or method will
impact outcomes (i.e. willingness to pay calculation). CEA models are flexible
and can incorporate a wide variety of scenarios. As opposed to Big Data, CEA
makes use of Broad Data so that comparisons of treatment modalities can be
evaluated using real life outcomes. It can compare effects on a discrete
problem such as a cancer tumor, or on chronic ongoing diseases such as COPD or
CHF.
As the delivery of effective yet profitable, or at least
cost effective, healthcare becomes more challenging, methods for evaluating
treatments and programs become more necessary if not essential. Methods must be
implemented to evaluate these new treatments and programs once they are in
place so adjustments can be made. CEA enable organizations to both initially
evaluate and subsequently monitor new methods and programs in a meaningful way.
CEA can be used in revenue cycle decisions, health information technology,
capital equipment acquisition, new treatment evaluation, disease management
evaluation, utilization management, etc.
If your objective is to provide the best decision-making for
your organization and take a global view of your business, expanding your
sights beyond ROI, and educating other decision-makers, Cost Effectiveness
Analysis can make your organization more competitive and more profitable.
William Matzner, MD. is a recognized expert in Healthcare
and Neuro Economics. With a Ph.D. in Economics, MBA and Medical Doctor degree,
Dr. William Matzner will provide you with expert analysis on health and
wellness programming, populations health management, disease management, new
program development, facility development, equipment acquisitions, and other
healthcare programs, acquisitions and initiatives. For more information about
cost effectiveness analysis and improved financial accountability for your
organization, visit Dr. Matzner at http://healthcareanalytics.biz
***
About William L.
Matzner, M.D., PhD, FACP
Dr.
William Matzner works in the area of healthcare economics consulting at
Healthcare Analytics, LLC, in California. He graduated Phi Beta Kappa from
Stanford University. He received his M.D. with Honors from Baylor College of
Medicine. In 1988, he was the Solomon Scholar for Resident Research at Cedar
Sinai Medical Center. Dr. Matzner subsequently was awarded a PhD in Neuro
Economics from Claremont Graduate University. He is board certified in Internal
Medicine and Palliative Medicine. He has researched and published extensively
on the issue of reproduction and immunology in medical literature. He has been
in private practice since 1989, specializing in Reproductive Immunology and
Internal medicine.
Website: https://drwilliammatzner.com
Consulting Website: http://healthcareanalytics.biz
William Matzner, MD (Simi Valley, California), has been practicing medicine since 1989, Internal Medicine and Reproductive Immunology. M.D. with Honors from Baylor College of Medicine.
