Cost/benefit analysis and capital investment decisions in nuclear cardiology. |
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Authors: | E V Kotlyarov M J Schniederjans |
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Institution: | Department of Nuclear Medicine, George Washington University, Washington, DC 20010, U.S.A.;Department of Management, University of Nebraska-Lincoln, Lincoln, NE 68588, U.S.A. |
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Abstract: | This paper demonstrates an application of Cost-Benefit Analysis as an aid in capital investment medical decision making. Specifically, a cost-benefit analysis is used to compare three nuclear cardiology instruments (i.e. Nuclear Stethoscope, Mobile Camera/Computer and Fixed Cardiac Computer). The study examined both non-quantitative and quantitative comparative factors. Results of the study show: (1) Conversion of the non-quantitative factors into a numerical system (via medical opinion) greatly delineates the relative merits of each instrument. (2) Simulating the stochastic economic and equipment utilization factors reveals instrument selection to be a function of patient flow and amortization procedures. (3) Adjusting the quantitative assessment of each instrument by the non-quantitative assessment (via the numerical system) aids in the capital investment decision. |
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