title: An Economic Analysis and Approach for Health Care Preparedness in a Substate Region.
abstract: OBJECTIVE
  To demonstrate the application of economics to health care preparedness by estimating the financial return on investment in a substate regional emergency response team and to develop a financial model aimed at sustaining community-level disaster readiness.
  
  
  METHODS
  Economic evaluation methods were applied to the experience of a regional Pennsylvania response capability. A cost-benefit analysis was performed by using information on funding of the response team and 17 real-world events the team responded to between 2008 and 2013. By use of the results of the cost-benefit analysis as well as information on the response team's catchment area, a risk-based insurance-like membership model was built.
  
  
  RESULTS
  The cost-benefit analysis showed a positive return after 6 years of investment in the regional emergency response team. Financial modeling allowed for the calculation of premiums for 2 types of providers within the emergency response team's catchment area: hospitals and long-term care facilities.
  
  
  CONCLUSIONS
  The analysis indicated that preparedness activities have a positive return on their investment in this substate region. By applying economic principles, communities can estimate their return on investment to make better business decisions in an effort to increase the sustainability of emergency preparedness programs at the regional level.
authors.affiliation: 1GAP Solutions,Inc (Contractor) Supporting the US Department of Health and Human Services,Washington,DC.
authors.forename: Benoit
authors.initials: B
authors.lastname: Stryckman
authors.affiliation: 2Hospital and Health System Association of Pennsylvania,Wayne,Pennsylvania.
authors.forename: Thomas L
authors.initials: TL
authors.lastname: Grace
authors.affiliation: 3Abington Memorial Hospital,Abington,Pennsylvania.
authors.forename: Peter
authors.initials: P
authors.lastname: Schwarz
authors.affiliation: 4US Department of Health and Human Services,Washington,DC.
authors.forename: David
authors.initials: D
authors.lastname: Marcozzi
mesh_terms: D019058:Community Networks / Q000191:economics* / Q000706:statistics & numerical data; D003362:Cost-Benefit Analysis; D004189:Disaster Planning / Q000191:economics* / Q000379:methods; D004190:Disasters / Q000191:economics*; D019981:Health Care Sector / Q000191:economics*; D006268:Health Facilities / Q000706:statistics & numerical data*; D006801:Humans; D009111:Local Government; D010414:Pennsylvania
keywords: emergency preparedness; health policy; risk assessment