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Cost-benefit analyses are routinely included in evaluations of acute care programs. In the case of long-term care, it is frequently alleged that cost-benefit analysis cannot be fruitfully applied. This article demonstrates the utility of applying cost-benefit analysis to evaluations of long-term care programs. A case study is presented in which cost-benefit analysis is used to evaluate an emergency alarm and response system developed to monitor the safety of vulnerable and disabled persons in their home environment.