Introduction
The United States spends a larger share of its gross domestic product (GDP) on health care than any other major industrialized country. Expenditures for health care represent nearly one-seventh of the Nation’s GDP, and they continue to be one of the fastest growing components of the Federal budget. In 1960, for example, health care expenditures accounted for about 5 percent of the GDP; by 2000, that figure had grown to more than 13 percent. Although the rate of growth in health care costs slowed somewhat in the mid-1990s, it has once again started to rise at a rate that exceeds other sectors of the economy. Thus, identifying ways to contain health care costs and obtain high value for our health care investments continues to be a priority for the Nation, particularly for policymakers and public and private payers.
About Book and Author
Principally a compilation of papers presented at a Stanford University Conference in 1991, this book goes beyond the health care arena to address cost-effectiveness in the arts, at universities and in human services. It is a compelling argument for the need to better quantify and compare, and it calls for nonprofit boards, funders and sector leaders to demand more meaningful and comparable forms of measurement. Each year society entrusts significant philanthropic dollars to nonprofits with the expectation that they will use those resources responsibly and ensure the generation of maximum benefit. In short, cost effective management.
To promote the concept, the book draws on a multitude of personal and organizational cases. As well, the book defines cost-effective analysis (CEA), presents five management priniciples and carefully illustrates the application of each. CEA is defined as "a rigorous system which tracks the costs of an activitu or programs and records the results, then compares the two in terms that.....
