Question

Contrast the differences between cost effectiveness and cost utility studies and give several examples of these.

Answer 1

Cost effectiveness is meant by how productive a product is yielding it's benefits in regards to its expense made to purchase them. For example: 1)the group of people in the hospital say doctors, nurses, researchers,administrators and other medical working people thereby ultimately offer results and care by reducing the costs and enhancing the effectiveness of the health care system.2) reducing the number of nurses like for example by assigning a nurse ratio of 1(nurse): 15(patients) in a medical ward for example a result of cost effectiveness thus reducing the turnover of nurses and the patient system outcomes!

Cost utilities is to point out the cost of various products in terms of quality and quantity for life. This is merely the mathematical calculation of the interventions which are been provided by the healthcare to its patients. For example when a good intervention or a product is given for free a customer increases his/her thinking to gain them until it provides him a positive utility. It is the position of the customers maximum satisfaction.