In the context of implementing a program budgeting and marginal analysis (PBMA) exercise, the following information on two programs of care, A and B has been determined within the health care budget:   Programme A Program B Marginal cost £350 £400 Marginal benefits (Healthy Years) 12 18 Calculate MB/MC and explain the interpretation of these ratio.

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter13: Medicaid
Section: Chapter Questions
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In the context of implementing a program budgeting and marginal analysis (PBMA) exercise, the following information on two programs of care, A and B has been determined within the health care budget:

 

Programme A

Program B

Marginal cost

£350

£400

Marginal benefits (Healthy Years)

12

18

  1. Calculate MB/MC and explain the interpretation of these ratio.
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