Application of CBA and CEA in Healthcare Organization



A cost-benefit analysis (CBA) and cost-effective analysis (CEA) provide valuable information for individuals

responsible for financial planning. These tools are also helpful in health care organizations. The principles of

CBA and CEA can also be applied to your personal financial decisions.

To prepare for this Discussion, complete the readings in your Learning Resources. Think of a project or

program (e.g. creating a new geriatric health center, purchasing a piece of expensive diagnostic equipment, or

adding an employee benefit) in a health care setting. Identify all of the primary and secondary benefits of the

program. Also, identify the direct and indirect costs.

By Day 4, post a comprehensive response to the following:

 Provide a brief description of the project or program you selected.

 Highlight the primary and secondary benefits of this project. Briefly explain the direct and indirect

costs. Are there costs that cannot be quantified? Are there any benefits that cannot be quantified?


 As a decision-maker, how would you use the CBA and CEA for this project?

Be sure to support your work with specific citations from this week’s Learning Resources and/or additional

scholarly sources as appropriate. Your citations must be in APA format. Refer to the Essential Guide to APA

Style for Walden Students to ensure your in-text citations and reference list are correct.

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