Cost analysis: Concepts and application

Public health nurses are increasingly called upon to justify the cost of ca re or to decide which of two alternative programs is more cost-effective. C ost studies can be complex and difficult to conduct, but an understanding o f the basic techniques allows nurses to fully participate in planning, impl ementing, and evaluating programs that greatly impact the health of the com munity. This article defines some of the basic terms used in health economi cs, discusses standard methods of cost analysis, and provides an example of neonatal screening to illustrate methods of describing, measuring, and ass igning a value to cost items.