FPGEE for National Association of Boards of Pharmacy (NABP) Practice Exam

In Cost-Benefit Analysis (CBA), what is the main challenge regarding outcomes?

1. Outcomes cannot be compared

2. Assigning a dollar value to quality of life can be difficult

3. All outcomes are measured in monetary units

4. It only focuses on direct costs

The correct answer is: Assigning a dollar value to quality of life can be difficult

In Cost-Benefit Analysis (CBA), one of the main challenges is assigning a dollar value to quality of life. This process is complex because quality of life encompasses subjective experiences and intangible benefits that are difficult to quantify in monetary terms. Researchers often rely on various methodologies, such as willingness-to-pay surveys or the use of quality-adjusted life years (QALYs), to derive a monetary representation of quality-adjusted life. However, these methods can present limitations and uncertainties, leading to challenges in accurately reflecting the true value of health outcomes or improvements in well-being in a format suitable for economic evaluation. This challenge highlights why CBA is particularly valuable: it aims to balance the costs of interventions against the benefits they provide, which include improvements in health and quality of life. Being able to express these diverse outcomes in a common monetary format is critical for making informed decisions regarding resource allocation in healthcare and other sectors.