Explain the concept of cost-effectiveness analysis in program planning.

• A. Assesses legal compliance.
• B. Measures participant satisfaction.
• C. Compares costs to outcomes to determine value per unit of health benefit, guiding resource allocation.
• D. Only considers costs with no outcomes.

Answer: (C)

Cost-effectiveness analysis in program planning focuses on comparing what a program costs with the health outcomes it achieves. It puts a value on health benefit by looking at the cost per unit of impact—such as cost per case prevented, cost per life-year gained, or cost per quality-adjusted life year gained. This approach helps decide which interventions give the most health benefit for the money, guiding resource allocation when budgets are limited. It’s not about legal compliance or simply measuring participant satisfaction, and it doesn’t make sense to consider costs without any information on outcomes, because the goal is to assess value for money rather than just spending. In practice, programs with favorable cost-effectiveness ratios are prioritized to maximize overall health impact within available resources.