Cost-benefit analysis and the evaluation of psychiatric services

Abstract

Synopsis The paper sets out a method for evaluating changes in psychiatric services in a cost-benefit framework. The first section of the paper analyses some of the problems which arise with those elements which can be measured in monetary terms – the ‘hard’ costs and benefits. The second section looks at a method of presenting the less tangible effects – the ‘soft’ costs and benefits. Finally, it is suggested how these can be brought together to aid rational decision-making.