Which analysis assigns a dollar value to outcomes such as length of stay?

• A. Cost Minimization Analysis
• B. Cost Effectiveness Analysis
• C. Time Series Analysis
• D. Cost Benefit Analysis

Answer: (D)

Monetizing outcomes is the key idea. Cost-Benefit Analysis converts all costs and benefits into monetary terms, so you can compare different options on a single dollar value. This lets you assign a dollar amount to outcomes like length of stay, incorporating factors such as resource use, avoided costs, and willingness-to-pay for shorter stays. The other approaches don’t monetize outcomes: Cost-Minimization assumes identical outcomes and compares costs only; Cost-Effectiveness Analysis links costs to a non-monetary outcome (for example, days of hospitalization avoided) without putting a dollar value on that outcome; Time Series Analysis is a statistical method for examining data over time, not an economic evaluation framework. Therefore, to assign a dollar value to outcomes such as length of stay, the appropriate framework is Cost-Benefit Analysis.