ROI Analysis: Art or Science?
The post-2008 financial crisis led many governments worldwide to adopt austerity measures with profound impact on the public financing of services. This chapter argues that public health budgets should be a priority as whilst individuals may be less willing to pay for many public health interventions, consumption decisions (e.g. choosing not to breastfeed) often do not consider the full economic costs and benefits (externalities). Return on investment (ROI) analyses provide a single, simplified metric comparing the costs and benefits of an investment portfolio. ROI information can be useful in supporting resource allocation decisions; however, its use in decision making may be influenced by how this information is communicated to stakeholders.
KeywordsPublic financing Public health Return on investment ROI
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