Interactive Cost-benefit Analysis: Providing Real-World Financial Context to Predictive Analytics

Objective: Clinical implementation of predictive analytics that assess risk of high-cost outcomes are presumed to save money because they help focus interventions designed to avert those outcomes on a subset patients who are most likely to benefit from the intervention. This premise may not always be true. A cost-benefit analysis is necessary to show if a strategy of applying the predictive algorithm is truly favorable to alternative strategies