Cost Effectiveness

Introduction   –   KfH Impact Tools   –  What and for whom?   –   Definitions   –   Methods   –   Tools  –   References

One of the ways that a library may wish to demonstrate value is by providing evidence of economic impact or value for money.

An explanation of the different ways of measuring costs and economic impact is provided in Urquhart and Turner (2016) who suggest that economic impact is usually  measured by cost benefit analyses or Return on Investment studies.

A basic cost analysis of a clinical librarian service was conducted by Booth et al, 2002.

Cost Effective Analysis is a comparative analysis of the costs and effectiveness of alternative interventions or services. In the library environment this could be in areas as diverse as competing methods of providing training or the use of different databases for information retrieval. For a beginners guide to cost effectiveness analysis, which uses a case study of mediated searching v information skills training in health libraries as an example, check out (Hulme, 2006).

Willingness to Pay is a method that has been used as a proxy for determining the economic benefits of health library services (Urquhart et al. 2005, Urquhart et al. 2006, Urquhart et al. 2007)

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