Principles of cost analysis.

In medicine, reimbursement changes that block cost shifting are rendering revenue-based strategies less productive. Under these conditions, cost-benefit and cost-effective analyses are being touted as more effective financial tools. The anesthesia literature reflects misunderstanding and misapplication of the terminology, and principles of cost analysis are reviewed in this essay. Current evidence suggests that anesthesia costs are a minor part of the problem of controlling health care expenditures. However, the ability to perform cost analysis is essential for anesthesia groups to secure their position in health care.