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With the growing importance of health economics the discipline of psychology has become increasingly aware of the need to monitor and analyse costs, and of the impact of these priorities on services , practioners and users.
Even the richest economies do not have unlimited money to fund psychological research and practice. With economic pressures accentuated it is important to manage health care costs and resource allocation and to budget effectively and to achieve cost containment.
Different aspects of cost analysis
- Cost-minimization analysis
- Cost-benefit analysis,
- Cost-effectiveness analysis
- Cost-utility analysis
- Sunk costs