Evaluation methods are used as guidance and support for HIT decisions. When facing these decisions, individuals must consider how the investment will improve or harm the organization. The eight significant steps are listed below.
1. Identify study objectives: This step focuses on the needs of the organization (Glandon & Smaltz, 2014). Identifying the needs will help propose a HIT application to achieve the desired outcomes to provide benefits for the organization.
2. Specify the alternatives: In this step, all alternatives must be listed to make a final decision relevant to the organization. Focusing on the best option will help ensure the maximum benefit; if not, choices can create risk in achieving the desired outcomes (Glandon & Smaltz, 2014).
3. Develop a framework for analysis: The theoretical framework organizes the technology and puts it into context based on the systems’ inputs and their relation to the system’s outcomes (Glandon & Smaltz, 2014). This development process helps understand how technology affects the system’s delivery, such as direct and indirect costs and benefits (Glandon & Smaltz, 2014).
4. Measure Costs: This step focuses primarily on identifying and measuring costs. The cost-benefit analysis includes the process of direct labor, equipment, and supplies (Glandon & Smaltz, 2014).
5. Measure Benefits: This process focuses on the framework, such as identifying the organization, financial, and clinical benefits. If there is no identification, it can lead to underestimating the net effect of technology (Glandon & Smaltz, 2014).
6. Factor in Lifecycle and Discounting: The step focuses on understanding the cycle of cost and benefits of the technology to make relevant comparisons. A comparison that is taken into consideration includes the alternatives, net cost, and benefits (Glandon & Smaltz, 2014).
7. Deal with Uncertainty: This method focuses on how the changes will affect the workplace. During this stage, the organization will develop the best case scenario and worst case to prepare. This process is referred to as a sensitivity analysis Preparation will help the organization get a head start and ready to work. This provides a significant advantage during the worst-case scenario since there is already an idea of tackling the situation.
8. Consider Equity: This final step includes equity considerations requiring examination of the organization’s costs and benefits and who receives those benefits and costs (Glandon & Smaltz, 2014).
Nov 16 at 3:27pm
Manage Discussion Entry
Cost evaluations “assess the gains and the costs of carrying out a set of activities” (WHO 2000). There are 8 major steps used in cost evaluation; (1) identifying study objectives, (2) specifying alternatives, (3) developing an analysis framework, (4) measuring costs, (5) measuring benefits, (6) factoring-in lifecycle and discounting, (7) dealing with uncertainty, and (8) considering equity. Step 1 is one of the most important steps. To have an accurate analysis, they must clearly identify all the study objectives if they want a truthful outcome of the evaluation. Step 2 focuses on alternatives. The alternative must be clearly expressed because without these a straight decision cannot be made. Not having good alternatives can invite the risk of those participating to lose faith in the outcome. Step 3 is about the analysis framework which is also known as the theoretical framework. Sometimes this step is ignored but it shouldn’t be because developing the framework is very important. The framework “puts the technology into the broader systems context” (Glandon et al. 2014) and shows the inputs are related. Step 4 is about the cost assessment. This is usually straightforward for items like direct labor, equipment, and supplies. Indirect/opportunity costs usually will take more time. This makes sure that the total costs are pertinent to the organization. Step 5 measures organizational, clinical, and financial organizations. The framework makes identifying the benefits easier. Step 6 factors in the lifecycle and discounting by recognizing when the costs and benefits occur in the lifecycle of the product. Step 7 deals with the uncertainty of the HIT investments. All HIT investments have risks which are why organizations have to consider these risks. The last step is focused on considering equity. This step “has its origins in the federal government’s use of benefit-cost analysis” (Glandon et al. 2014). Equity considerations may necessitate an evaluation of the costs and benefits for the organizations and for those who receive the benefits and costs.