What is the purpose of "cost-effectiveness analysis" in healthcare?

Cost-effectiveness analysis plays a crucial role in healthcare decision-making by evaluating the costs and outcomes associated with different interventions or treatments. Its primary purpose is to provide a systematic approach to compare the relative costs and health outcomes of various healthcare options, thereby assisting policymakers and healthcare providers in making informed choices.

This type of analysis focuses on determining the most efficient use of resources by assessing both the financial implications and the health benefits obtained from each intervention. The results can guide healthcare organizations in prioritizing spending, optimizing resource allocation, and ultimately improving patient care. By quantifying the value gained from expenditures in terms of health outcomes—often measured in terms of quality-adjusted life years (QALYs) or similar metrics—cost-effectiveness analysis becomes an indispensable tool for enhancing efficiency and effectiveness in healthcare systems.

Other options, while relevant to healthcare, do not align with the primary aim of cost-effectiveness analysis. For instance, analyzing patient satisfaction focuses more on subjective measures of healthcare quality rather than involving costs or outcomes of interventions directly. Assessing healthcare professional wages and hospital infrastructure needs are critical areas, but they do not contribute to evaluating the cost-effectiveness of healthcare interventions directly. Thus, understanding the purpose of cost-effectiveness analysis is vital for optimizing healthcare practices and ensuring the