Article 2

13.6 EVALUATIONS Evaluating the use of resources in healthcare organizations is an important task. There are never enough resources to go around, and it is important to use an objective process to evaluate which investments will be made by the organization. A uniform use of a chosen method of evaluating return on investment and/or payback period makes the evaluation process more manageable.

It is important to choose a method that is understood by the managers who will be using it. It is equally important to choose a method that can be readily calculated. If a multiple-page worksheet has to be constructed to set up the assumptions for a modestly priced piece of equipment, the evaluation method is probably too complex. This comment actually touches on the cost-benefit of performing the evaluation.

Sometimes a computer program is chosen that performs a uniform computation of investment returns and payback periods. Such a program is a suitable choice if the managers who use it understand the printouts it produces. Understanding both input and output is key for the managers. In summary, evaluations should be objective, the process should not be too cumbersome, and the responsible managers should understand how the computation was achieved.

1/2/20, 7:08 PM Page 1 of 1