Why Are Cost-Benefit Analyses of Health Care Often Problematic or Controversial

question 2

Multiple Choice

Why are cost-benefit analyses of health care often problematic or controversial from a human standpoint?

• A) They generate a ration of health-related units to dollars that is not easily applicable to real world situations.
• B) They are biased toward economic efficiency and fail to take costs like suffering and death into account.
• C) They compare only two alternatives for an option, often neglecting viable third and fourth options.
• D) They focus on disease trends to determine allocation of funds, often ignoring less common illnesses.

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Definitions:

Indirect Expenses

Costs not directly linked to the production of goods or services, such as administrative and marketing expenses.

Subjective

Based on personal opinions, interpretations, points of view, or emotions rather than objective facts.

Cost of Goods Sold

The expenses directly related to the manufacturing of products sold by a business, including the costs associated with materials and labor.

Departmental Accounting

An accounting method that tracks the income, expenses, and profitability of individual departments within a company.