Cost Utility Analysis and Cost Effectiveness Analysis

Document Type:Essay

Subject Area:Analysis

Document 1

Cost is measured in monetary terms while benefit may not be necessarily measured in terms of money but is rather expressed in quality-adjusted life years (QALYs). Taking intervention A as an example, the costs and benefits of this intervention are juxtaposed to see which outweighs the other. If a patient is allowed by this intervention to live three more years than when the intervention is not undertaken, and with a weight of life of 0. then the QALYS that the intervention has conferred to the patient is 0. which equals to 1. If this intervention is compared to another than confers two more years to a patient, and has a life weight of 0. then the benefit conferred equals to 1. If the two interventions are compared, intervention A has a net benefit of 0. According to Muennig et al. in implementing any intervention, it is paramount that the cost benefit analysis be done as this will reveal the net output of the intervention in terms of the value that it adds to the people of Romania. It will require, therefore, that for any implementation to be done, the benefits of an intervention should be higher than the costs. Also, in comparing two alternatives, it is important to consider the net benefit or QALYs that it impacts to the people of Romania (Muennig et al. Allocation of public health resources in Romania will be no exception, I will look at the output they do have to the people and the cost of providing the same. On the other hand, cost effectiveness analysis is a type of analysis that compare in relative terms the costs and outcomes of a given course of action.

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Basically, it is expressed as a ratio denominator being the benefits or gain in health from certain measure for example the life expectancy and the numerator being the cost that is associated with these benefits. It’s distinctive from the cost-benefit analysis (the cost utility analysis) as the latter gives a monetary value to the measure of effect. Mainly, the analysis is used in health sector where monetizing health effect is impossible. According to Muennig et al. the analysis focuses on putting the level of the outcomes to the maximum while keeping the costs of the outcomes at minimum. In provision of health care services and products in Romania, I would use the two forms of analysis so as to ensure that allocation is done efficiently. These distortions have led to nothing but dissatisfaction of the people.

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Secondly, there is a poor medical care service which comes along with the discontentment of doctors with the poor working conditions, lack utilities and facilities not mentioning the sanitary materials. Thirdly, administration inefficiency in the funds that are released deteriorates the already bad situation. Further, the country lacks the autonomy in the financial and managerial fronts. This is due to the fact that the sector is co-funded by the private sector and the public sector and as such financial autonomy lacks. This unmet demand marginally rose in 2017 to 12. Secondly, there is underinvestment in expenditures that are related to preventive programs. In Romania, this expenditure that is associated with preventive care is about 0. which is the second lowest budget in the European Union countries. This is a gap that needs to be bridged.

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In investing in health care services and products, there are definitely some challenges that one would encounter. These include needed lack support from the government or lack of cooperation therein, lack of information by the members of public, and the challenge of meeting demand due to the growing population in the country among others. Furthermore, in improving the health system of Romania, I would enact information reform. This reform will aim at disseminating the relevant information to the member so the public to ensure that they are well equipped and can avoid some health care problems. This will be a way of empowering people to their environment and what concerns them and it will help bridge the gap of information that already exist between the people and the health care providers.

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Retrieved: 19 November 2017, from http://ec. europa. eu/eurostat/statisticsexplained/index. php/Healthcare- expenditure_statistics#Long-term_care_expenditure Oancea, R. Amariei, C. Rancic, N. Kovacevic, A. Dragojevic-Simic, V. Long-Term Health Expenditure Changes in Selected Balkan Countries.  Frontiers in public health, 3.

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