Health sector Cost–Benefit Analysis (CBA) evaluates whether a health intervention’s economic and social benefits outweigh its costs. The process begins by defining the intervention, target population, location, and time horizon, and identifying a suitable comparator. Analysts then estimate all relevant costs, including direct medical costs (medications, staff, facilities), direct non-medical costs (transportation, administration), and indirect costs such as productivity losses. Benefits are measured through improved health outcomes, reduced healthcare spending, and productivity gains. Health impacts may be assessed using measures like Quality-Adjusted Life Year or Disability-Adjusted Life Year and converted into monetary values. Future costs and benefits are discounted to calculate indicators such as Net Present Value and Benefit–Cost Ratio. Sensitivity analysis and equity considerations ensure robust, policy-relevant results for decision-makers in health planning.
