FINANCIAL EXERCISE 4
This exercise provides you experience and application with the cost benefit analysis and cost effectiveness analysis. You will complete each question and type a narrative and, if appropriate, a numerical response to each question. You may use a calculator or Microsoft Excel to complete this assignment. The assignment must be submitted in Word format.
1. What is benchmarking?
2. What are the primary benchmarking approaches?
3. What are the 10 steps in the benchmarking process?
4. According to the text, what is the most common measure of productivity?
5. How can productivity be measured if an industry standard cannot be found?
6. Can productivity be assessed in absolute terms?
7. What proposed change has been suggested for health care productivity measurement?
8. If unit costing is used to assess productivity, can we still employ productivity benchmarks or standards?
9. What is the difference between cost benefit analysis (CBA) and cost-effectiveness analysis (CEA)?
10. What are the key elements in performing a cost-benefit analysis?