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NursingDiscussion postHealth economics

DNP 835 Topic 2 DQ 1: cost-based analysis

Cost-benefit, cost-effectiveness and cost-utility are different analyses answering different questions. Using the terms interchangeably is the error that shows immediately.

Editorial process

Last reviewed · August 15, 2026

01

Cost-based analysis, and which of its several meanings

Be precise about which analysis you mean, because the family has distinct members and they answer different questions. Cost-benefit analysis converts both costs and outcomes into money, which forces you to put a monetary value on a health outcome and is why it is used less in clinical settings than people assume. Cost-effectiveness analysis leaves the outcome in natural units — cost per readmission avoided, cost per case detected — and is usually what a practice-improvement project actually needs. Cost-utility analysis expresses outcomes in quality-adjusted life years so that programmes with unlike outcomes can be compared. Cost-minimisation applies only where outcomes are already known to be equivalent, which is a stronger precondition than it sounds. Naming the one you mean, and saying why it fits, is most of a strong post. Return on investment sits alongside these rather than inside them: it is a financial calculation from one organisation's perspective, and treating it as an economic evaluation is a common conflation.

The example is where the thinking shows. Pick a programme with a countable outcome and be honest about the cost side, which is where these analyses go wrong in practice. Direct costs — staff time, supplies, software — are easy. The ones routinely omitted are the opportunity costs: the nurse running the education session is not doing something else, and a programme that appears free because it uses existing staff has hidden its largest input. Say whose perspective you are costing from as well, because a fall-prevention programme looks entirely different from the hospital's books, the payer's and the patient's, and an unstated perspective makes the numbers unreadable. Then show the outcome link explicitly: cost per fall avoided means you need the counterfactual fall rate, and where that comes from is a question worth answering out loud. Include the cost of the analysis where it is material: evaluating a small programme rigorously can cost more than the programme.

Likely learning objectives

Inferred from the brief — check these against your own rubric.

  • 01
    Distinguish cost-benefit, cost-effectiveness, cost-utility and cost-minimisation analysis.
  • 02
    Select the analysis that fits the outcome being measured.
  • 03
    Account for opportunity costs, not only direct costs.
  • 04
    State the perspective from which costs are counted.
Assignment instructionsQuoted verbatim

Read the full question

Review every instruction before using the planning guidance that follows.

Discuss the concept of cost-based analysis. Provide an example of a program where it could be used to show outcomes.
Course-wide instructions that accompany this question

Important information for writing discussion questions and participation Hi Class, Please read through the following information on writing a Discussion question response and participation posts. Contact me if you have any questions. Important information on Writing a Discussion Question Your response needs to be a minimum of 150 words (not including your list of references) There needs to be at least TWO references with ONE being a peer reviewed professional journal article. Include in-text citations in your response Do not include quotes—instead summarize and paraphrase the information Follow APA-7th edition Points will be deducted if the above is not followed Participation –replies to your classmates or instructor A minimum of 6 responses per week, on at least 3 days of the week. Each response needs at least ONE reference with citations—best if it is a peer reviewed journal article Each response needs to be at least 75 words in length (does not include your list of references) Responses need to be substantive by bringing information to the discussion or further enhance the discussion. Responses of “I agree” or “great post” does not count for the word count. Follow APA 7th edition Points will be deducted if the above is not followed Remember to use and follow APA-7th edition for all weekly assignments, discussion questions, and participation points. Here are some helpful links Student paper example Citing Sources The Writing Center is a great resource Welcome to class Hello class and welcome to the class and I will be your instructor for this course. This is a -week course and requires a lot of time commitment, organization, and a high level of dedication. Please use the class syllabus to guide you through all the assignments required for the course. I have also attached the classroom policies to this announcement to know your expectations for this course. Please review this document carefully and ask me any questions if you do. You could email me at any time or send me a message via the “message” icon in halo if you need to contact me. I check my email regularly, so you should get a response within 24 hours. If you have not heard from me within 24 hours and need to contact me urgently, please send a follow up text to. DNP 835 Topic 2 DQ 1 Discuss the concept of cost-based analysis. I strongly encourage that you do not wait until the very last minute to complete your assignments. Your assignments in weeks 4 and 5 require early planning as you would need to present a teaching plan and interview a community health provider. I advise you look at the requirements for these assignments at the beginning of the course and plan accordingly. I have posted the YouTube link that explains all the class assignments in detail. It is required that you watch this 32-minute video as the assignments from week 3 through 5 require that you follow the instructions to the letter to succeed. Failure to complete these assignments according to instructions might lead to a zero. After watching the video, please schedule a one-on-one with me to discuss your topic for your project by the second week of class. Use this link to schedule a 15-minute session. Please, call me at the time of your appointment on my number. Please note that I will NOT call you. Please, be advised I do NOT accept any assignments by email. If you are having technical issues with uploading an assignment, contact the technical department and inform me of the issue. If you have any issues that would prevent you from getting your assignments to me by the deadline, please inform me to request a possible extension. Note that working fulltime or overtime is no excuse for late assignments. There is a 5%-point deduction for every day your assignment is late. This only applies to approved extensions. Late assignments will not be accepted. If you think you would be needing accommodations due to any reasons, please contact the appropriate department to request accommodations. Plagiarism is highly prohibited. Please ensure you are citing your sources correctly using APA 7th edition. All assignments including discussion posts should be formatted in APA with the appropriate spacing, font, margin, and indents. Any papers not well formatted would be returned back to you, hence, I advise you review APA formatting style. I have attached a sample paper in APA format and will also post sample discussion responses in subsequent announcements. Your initial discussion post should be a minimum of 200 words and response posts should be a minimum of 150 words. Be advised that I grade based on quality and not necessarily the number of words you post. A minimum of TWO references should be used for your initial post. For your response post, you do not need references as personal experiences would count as response posts. If you however cite anything from the literature for your response post, it is required that you cite your reference. You should include a minimum of THREE references for papers in this course. Please note that references should be no more than 5 years old except recommended as a resource for the class. Furthermore, for each discussion board question, you need ONE initial substantive response and TWO substantive responses to either your classmates or your instructor for a total of THREE responses. There are TWO discussion questions each week, hence, you need a total minimum of SIX discussion posts for each week. I usually post a discussion question each week. You could also respond to these as it would count towards your required SIX discussion posts for the week. I understand this is a lot of information to cover in 5 weeks, however, the Bible says in Philippians 4:13 that we can do all things through Christ that strengthens us. Even in times like this, we are encouraged by God’s word that we have that ability in us to succeed with His strength. I pray that each and every one of you receives strength for this course and life generally as we navigate through this pandemic that is shaking our world today. Relax and enjoy the course! Name: Discussion Rubric Grid View List View Excellent 90–100 Good 80–89 Fair 70–79 Poor 0–69 Main Posting: Response to the Discussion question is reflective with critical analysis and synthesis representative of knowledge gained from the course readings for the module and current credible sources. 40 (40%) – 44 (44%) Thoroughly responds to the Discussion question(s). Is reflective with critical analysis and synthesis representative of knowledge gained from the course readings for the module and current credible sources. No less than 75% of post has exceptional depth and breadth. Supported by at least three current credible sources. 35 (35%) – 39 (39%) Responds to most of the Discussion question(s). Is somewhat reflective with critical analysis and synthesis representative of knowledge gained from the course readings for the module. 50% of the post has exceptional depth and breadth. Supported by at least three credible references. 31 (31%) – 34 (34%) Responds to some of the Discussion question(s). One to two criteria are not addressed or are superficially addressed. Is somewhat lacking reflection and critical analysis and synthesis. Somewhat represents knowledge gained from the course readings for the module. Cited with fewer than two credible references. 0 (0%) – 30 (30%) Does not respond to the Discussion question(s). Lacks depth or superficially addresses criteria. Lacks reflection and critical analysis and synthesis. Does not represent knowledge gained from the course readings for the module. Contains only one or no credible references. Main Posting: Writing 6 (6%) – 6 (6%) Written clearly and concisely. Contains no grammatical or spelling errors. Adheres to current APA manual writing rules and style. 5 (5%) – 5 (5%) Written concisely. May contain one to two grammatical or spelling errors. Adheres to current APA manual writing rules and style. 4 (4%) – 4 (4%) Written somewhat concisely. May contain more than two spelling or grammatical errors. Contains some APA formatting errors. 0 (0%) – 3 (3%) Not written clearly or concisely. Contains more than two spelling or grammatical errors. Does not adhere to current APA manual writing rules and style. Main Posting: Timely and full participation 9 (9%) – 10 (10%) Meets requirements for timely, full, and active participation. Posts main Discussion by due date. 8 (8%) – 8 (8%) Meets requirements for full participation. Posts main Discussion by due date. 7 (7%) – 7 (7%) Posts main Discussion by due date. 0 (0%) – 6 (6%) Does not meet requirements for full participation. Does not post main Discussion by due date. First Response: Post to colleague’s main post that is reflective and justified with credible sources. 9 (9%) – 9 (9%) Response exhibits critical thinking and application to practice settings. Responds to questions posed by faculty. The use of scholarly sources to support ideas demonstrates synthesis and understanding of learning objectives. 8 (8%) – 8 (8%) Response has some depth and may exhibit critical thinking or application to practice setting. 7 (7%) – 7 (7%) Response is on topic and may have some depth. 0 (0%) – 6 (6%) Response may not be on topic and lacks depth. First Response: Writing 6 (6%) – 6 (6%) Communication is professional and respectful to colleagues. Response to faculty questions are fully answered, if posed. Provides clear, concise opinions and ideas that are supported by two or more credible sources. Response is effectively written in standard, edited English. 5 (5%) – 5 (5%) Communication is mostly professional and respectful to colleagues. Response to faculty questions are mostly answered, if posed. Provides opinions and ideas that are supported by few credible sources. Response is written in standard, edited English. 4 (4%) – 4 (4%) Response posed in the Discussion may lack effective professional communication. Response to faculty questions are somewhat answered, if posed. Few or no credible sources are cited. 0 (0%) – 3 (3%) Responses posted in the Discussion lack effective communication. Response to faculty questions are missing. No credible sources are cited. First Response: Timely and full participation 5 (5%) – 5 (5%) Meets requirements for timely, full, and active participation. Posts by due date. 4 (4%) – 4 (4%) Meets requirements for full participation. Posts by due date. 3 (3%) – 3 (3%) Posts by due date. 0 (0%) – 2 (2%) Does not meet requirements for full participation. Does not post by due date. Second Response: Post to colleague’s main post that is reflective and justified with credible sources. 9 (9%) – 9 (9%) Response exhibits critical thinking and application to practice settings. Responds to questions posed by faculty. The use of scholarly sources to support ideas demonstrates synthesis and understanding of learning objectives. 8 (8%) – 8 (8%) Response has some depth and may exhibit critical thinking or application to practice setting. 7 (7%) – 7 (7%) Response is on topic and may have some depth. 0 (0%) – 6 (6%) Response may not be on topic and lacks depth. Second Response: Writing 6 (6%) – 6 (6%) Communication is professional and respectful to colleagues. Response to faculty questions are fully answered, if posed. Provides clear, concise opinions and ideas that are supported by two or more credible sources. Response is effectively written in standard, edited English. 5 (5%) – 5 (5%) Communication is mostly professional and respectful to colleagues. Response to faculty questions are mostly answered, if posed. Provides opinions and ideas that are supported by few credible sources. Response is written in standard, edited English. 4 (4%) – 4 (4%) Response posed in the Discussion may lack effective professional communication. Response to faculty questions are somewhat answered, if posed. Few or no credible sources are cited. 0 (0%) – 3 (3%) Responses posted in the Discussion lack effective communication. Response to faculty questions are missing. No credible sources are cited. Second Response: Timely and full participation 5 (5%) – 5 (5%) Meets requirements for timely, full, and active participation. Posts by due date. 4 (4%) – 4 (4%) Meets requirements for full participation. Posts by due date. 3 (3%) – 3 (3%) Posts by due date. 0 (0%) – 2 (2%) Does not meet requirements for full participation. Does not post by due date. Total Points: 100 Name: Discussion Rubric

02

Turn the brief into deliverables

  1. 01
    A precise definition of the specific analysis you mean.
  2. 02
    A programme with a countable outcome.
  3. 03
    A cost inventory including opportunity costs.
  4. 04
    A stated costing perspective.
  5. 05
    An explicit link from cost to outcome, including the counterfactual.
03

Define the method, then run it on a real programme

01

The family of analyses

Distinguish the main cost analyses by the question each answers.

02

Choosing one for your programme

Select the analysis that fits the outcome available.

03

Costing the programme

Build the cost inventory including opportunity and hidden costs.

04

Linking cost to outcome

Show how the ratio is produced and where the counterfactual comes from.

04

Where the cost figures come from

Recommended databases

  • KFF health costs
  • AHRQ
  • PubMed Central
  • Your finance department's cost data

Search sequence

  1. 1.
    Confirm the formal definition of the analysis you intend to name.
  2. 2.
    Find a published economic evaluation of a comparable programme.
  3. 3.
    Ask what your organisation counts as a fully loaded staff hour.
  4. 4.
    Establish the baseline rate your counterfactual will need.
05

Reference shortlist

These are authoritative starting points, not a ready-made bibliography. A qualified reviewer must confirm that each source fits the assignment and supports the claim beside which it is cited.

Nothing here is cleared for citation until you have read it.

  1. 01

    Health Costs - Research and Data from KFF

    KFF · 2024

    Cost and spending data at a level that lets a programme's numbers be placed in context.

  2. 02

    Reducing Hospital Readmissions

    StatPearls, NCBI Bookshelf · 2024

    A worked improvement target with countable outcomes, which is what a cost-effectiveness ratio needs.

  3. 03

    Quality Improvement Methods (LEAN, PDSA, SIX SIGMA)

    StatPearls, NCBI Bookshelf · 2024

    Covers improvement methods and their resource requirements, which is where the opportunity costs sit.

  4. 04

    Hospital Readmissions Reduction Program

    Centers for Medicare & Medicaid Services · 2025

    A payment programme that makes the costing perspective concrete: the same outcome has different financial meaning to hospital and payer.

06

Review before submission

Common mistakes

  • Using cost-benefit and cost-effectiveness as synonyms.
  • Counting only direct costs, so a staff-delivered programme appears free.
  • Leaving the costing perspective unstated.
  • Choosing a programme whose outcome cannot be counted.

Submission checklist

  • Have you named which analysis in the family you mean?
  • Is the outcome in your example genuinely countable?
  • Did you include opportunity cost?
  • Is the perspective stated, and consistent throughout?

Use this guide to plan and review your own work. Follow your institution's rules and read our academic-integrity policy.

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Aaron Bishop

MA, Education

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Aaron leads the EssayCrackers editorial desk. He works on how assignment briefs are read — what a rubric is actually asking for, and where students most often answer a different question than the one set.

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Dr. Nathan Cole

PhD, Rhetoric & Composition

Argumentation and thesis development

Nathan teaches first-year composition and directs a university writing center. He reviews EssayCrackers guides for argumentative soundness and citation accuracy.

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