ABSTRACT
Healthcare information technology has value in decision-making for purchases and informed decisions in general. The magnitude of cost evaluation could vary based on the technology and implementation goals. Cost evaluation information will also advantageously position technology proponents to obtain stakeholders' support. Several main types of cost analysis can be applied to HIT: Cost-benefit analysis (CBA), Cost-effectiveness analysis, Cost-minimization analysis and Return on investment. The total cost of technology can be divided into two parts: fixed cost (“hard” dollars) and variable cost (“soft” dollars). CBA is an economic evaluation in which all costs and consequences of a program are expressed in the same units, usually money. The traditional financial definition of ROI is simply earnings divided by investment. The Consolidated Health Economic Evaluation Reporting Standards statement consolidates previous health economic evaluation guidelines efforts into one current, useful reporting guide.
