Risk - Cash-flow Evaluation of the E-Health Implementation Project in the Slovak Republic

• Published in: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis Vol. 62; no. 4; pp. 707 - 718
• Main Author: Sendek, Stanislav
• Format: Journal Article
• Language: English
• Published: Mendel University Press 2014
• Subjects: Cost-Benefit Analysis; e-health; Latin Hypercube sampling method; net present value; simulated evaluation
• ISSN: 1211-8516; 2464-8310
• DOI: 10.11118/actaun201462040707

The aim of this paper is to present a risk-cash flow evaluation of the E-Health/Health-IT implementation project in the Slovak Republic. The paper is focused on the economic modelling in the E-Health environment. The costs of E-Health implementation in Slovakia, as demonstrated by foreign examples and studies, are expected to be overrun by cumulated benefits in medium to long term.The processes in the investment activities are characterized by different alternative cost and/or benefit entries in terms of financial inputs and outputs. Four computer simulations based on the Latin Hypercube sampling method are applied to evaluate potential financial effects of events with a respective likelihood of occurrence. Based on the E-Health cost-benefit analysis (CBA), the probability distributions of the Net Present Value (NPV), as one of the basic indicators of measuring the investment efficiency, will be simulated, calculated and discussed. A successful development and implementation of electronic healthcare services are subject to an effective application of robust investments which cover these activities. The paper proves the idea of a seamless project implementation as a precondition for ensuring the health IT projects sustainability and profitability in the long term.