Methodological issues linking costs and outcomes.

OBJECTIVES: The author examined issues in linking costs and outcomes in care delivery systems research.
METHODS: Literature regarding cost analyses and outcomes is discussed in light of the following methodological issues: what costs can be captured, how costs should be allocated, whose costs are being considered in relation to the choice of meaningful outcomes measures, and what magnitude of intervention is required to achieve the outcomes.
RESULTS: Although various methods are used to estimate the costs of providing health care, direct determination of cost is elusive, and measurement problems limit comparison across studies and institutions. Further, the linkage among outcomes, organizational variables, and the "intervention dose" needed to produce the desired outcomes is not well developed.
CONCLUSIONS: The methodological issues linking costs and outcomes pose challenging research opportunities: the choice of the most feasible measures for estimating costs of care across sites of care delivery, the examination of shifts in cost burden, the most meaningful measures of outcomes as relevant to different stakeholders, the magnitude of intervention needed to produce a change in outcome, and the cost of achieving that change.