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Questions and Answers
What type of expenditure includes costs related to staff and consumables?
What type of expenditure includes costs related to staff and consumables?
Which of the following best defines cost effective analysis (CEA)?
Which of the following best defines cost effective analysis (CEA)?
Which of the following is NOT a type of capital expenditure?
Which of the following is NOT a type of capital expenditure?
When should you use cost effective analysis?
When should you use cost effective analysis?
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What is one advantage of cost effective analysis?
What is one advantage of cost effective analysis?
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What is a key drawback of cost effective analysis?
What is a key drawback of cost effective analysis?
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Which aspect is considered a capital expenditure?
Which aspect is considered a capital expenditure?
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In cost effective analysis, what unit is typically used to measure outcomes?
In cost effective analysis, what unit is typically used to measure outcomes?
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What is a characteristic of recurrent expenditure?
What is a characteristic of recurrent expenditure?
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Study Notes
Types of Healthcare Expenditure
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Capital Expenditure: Investment aimed at acquiring or enhancing assets that have value.
- Examples include buildings and medical equipment.
- Assets can be sold to meet financial commitments or debts.
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Recurrent Expenditure: Ongoing costs that do not contribute to asset acquisition or enhancement.
- Examples include staff salaries, pharmaceuticals, and consumables.
Cost-Effectiveness Analysis (CEA)
- CEA compares the costs of health interventions with their effectiveness, measured in health units.
- Costs are evaluated in monetary terms.
- Outcomes are reflected in natural health units, such as cases prevented or years of life saved.
- It is particularly useful for decision-makers working with limited budgets in specific fields.
Decision Making
- CEA is used to assess the value for money of digital products against alternatives using the same effect metric related to particular diseases.
- Ideal when the benefits are primarily health-related and clinical measures effectively capture the health improvements from the product.
Pros and Cons of CEA
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Advantages:
- Clinical outcomes are generally easier to measure, especially when linked to clinical trials.
- Provides a comparison of alternative options based on disease-specific health effect measures.
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Drawbacks:
- Limited in informing broader resource allocation decisions across different diseases due to varying health benefit measurements (different clinical outcomes).
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Description
Explore the different types of healthcare expenditure, focusing on capital and recurrent costs. This quiz will help you understand how these expenditures impact healthcare services and the importance of cost-effective analysis in healthcare decision-making.
