The 2018 “Guide to Cost-Benefit Analysis of Health Capital Projects” developed by NSW Health provides a standardized framework for evaluating major health infrastructure investments in New South Wales, Australia. The guide supports decision-makers in assessing whether proposed health capital projects—such as hospitals or medical facilities—deliver value for money and improve healthcare outcomes. It outlines principles, concepts, and methodologies for conducting cost-benefit analysis (CBA), enabling analysts to identify, quantify, and compare the economic, social, and environmental costs and benefits of different project options. The framework emphasizes monetizing project impacts where possible and comparing alternatives using indicators such as Net Present Value (NPV) and Benefit-Cost Ratio (BCR). The guide also highlights challenges in valuing health benefits, since health improvements are often non-market outcomes. Overall, it promotes consistent, evidence-based decision-making in planning and prioritizing public health infrastructure investments.
