COST EFFECTIVENESS

 GENERAL OBJECTIVES
At the end of the topic students will able to understand the knowledge
about cost effectiveness.
 SPECIFIC OBJECTIVES
1. Define the cost.
2. Discuss the types of cost.
3. Illustrate the theory of cost.
4. Define the cost effectiveness.
5. Explain the stages of cost effectiveness.
6. Explain the nursing action for cost effectiveness nursing care.
7. Explain about cost effectiveness analysis.
8. Discuss the importance of cost effectiveness analysis.
9. Discuss the formula of cost effectiveness analysis.
10. Discuss the role of nirses in cost effectiveness.
 INTRODUCTION
The cost of health care delivery is growing at an
outstanding rate as a result of application of expensive new
technology in the care domain.
These changes in the health care delivery imposes a
financial pressure on hospital services specially nursing
services.
Consequently health care facilities are now compelledto
reexamine their methods of care delivery and develop creative
approaches to contain cost while providing the expected high
level of quality.

 DEFINITION OF COST
The cost is the money expended for all resources used,
including personnel , supplies and equipment.

 TYPES OF COST
A. Direct nursing cost
B. In-Direct nursing cost
A. DIRECT NURSING COST
It is the cost used by the hospital to provide service to
patient. The cost of nurse employment and the supplies that
they use are examples of direct costs.

B. IN-DIRECT NURSING COST

It is the cost used by the hospital to provide service to the
patient .These cost include: building and equipment use
,occupancy services ,and central administration , library
operation and technical services .
  THEORY OF COST
1. DEMAND-PULL THEORY OF COST
This theory suggest that increases in the cost of health
occurs from excess demand and spending on health care
services to accommodate the demand.

2. COST-PUSH THEORY OF INFLATION

This theory suggests that higher prices result from the
rising cost within the health care business .

 DEFINITION OF COST EFFECTIVENESS

Cost effectiveness is the extent to which an organization or
programme produced particular output (which are concrete and
measurable) or outcomes (which may not be measurable

 STAGES OF COST EFFECTIVENESS

1. Cost awareness
2. Cost monitoring
3. Cost management
4. Cost avoidance
5. Cost incentives

 COST AWARENESS :
 It focuses the employee attention on costs. It increase the
organizational awareness of cost are ,how they can be
managed and by whom.
 COST MONITORING:
It focuses on how much will be spent where , when and why .

 COST MANAGEMENT :
It includes conceptual and physical acts to limit unnessesary
spending through planned and practical use of personal ,
material a d physical resources for maximum productivity .it
focuses on what can be done by whom to contain costs .

 COST AVOIDANCE :
It means not buying supplies , technology or services , the
cost of them should be analyzed carefully and the most
expencive and less effective items avoided .

 COST INCENTIVES:
It motivate cost containment and reward desired behavior .

COST EFFECTIVE ANALYSIS

 DEFINITON OF COST EFFECTIVE ANALYSIS

Cost effective analysis has been defined by the National
Institute for Health and Clinical Excellence (NICE) as an
economic study design in which consequences of different
interventions are measured using a single outcome , usually in
 ‘natural’ units ( for example , life years gained , deaths avoided
,heart attacks avoided or cases detected). Alternative
interventions are compared in terms of cost per unit of
effectiveness .

 FORMULA FOR ANALYSIS

Cost of interventions
Cost effectiveness analysis = -------------------------------
Health effects of produced
( eg. Life years gained)

 IMPORTANCE OF COST EFFECTIVENESS ANALYSIS

 Useful technique for assisting in the decision making process .

 It can indicate which one of a number of alternative interventions
represents the best value for money.
 It encourages to collect for quality of effectiveness data , which we
need for cost effectiveness analysis.
 It may be the criteria for determining wheather interventions are
effective or priority the decision making .

NURSES ROLE ON COST EFFECTIVENESS NURSING CARE:

 Improving prenatal care.
 Preventive and wellness care.
 Psychiatric / behavioral health care.
 Effective chronic conditioned care.
 Preventing hospital acquired conditions like pressure ulcers ,
infections ,etc.
NURSING ACTIONS FOR COST EFFECTIVENSS NURSING CARE
 Keeping well nourished of patients.
 Ensuring rest and sleep of patient .
 Safety environment to the patients.
 Protection from acquired infections.
 Conscious about skin matter : ensure no avoidable
pressure ulcers.
 Make right and priority choices when times comes .
 Be fit and well do care.
 Promote health by preventive measures.
 SUMMARY
My topic is cost effectiveness in administration and content is
introduction of cost effectiveness , definition of cost , types of
nursing cost , theory of nursing cost , definition of cost effectiveness,
stages of cost effectiveness ,definition of cost effective analysis,
nurses roles ,and nursing actions explain in seminar. All about cost
effectiveness explain in seminar to all students with guidance
teacher.

CONCLUSION
My topic is cost effectiveness in nursing dministration , explain all
detailed knowledge and information to all student and provided
knowledge to all group. They understood about all concept of cost
effectivenss and given response to all quetionaries on topic.
 BIBLIOGRAPHY
 Basvanthappa B T, Nursing administration . 2nd edition. Jaypee
brothers medical publishers; St Louis USA; 2009
