Health care innovations in the United States have taken on various services about the population in the United States. The United States has added more than 27 million of its population, which did not have any access to health care before. The administrative innovations have thus increased in costs since as more people are added more services and tasks are added to both the staff and the different technologies in the market (May, 2013). The affordable care act has brought about an influx of people into the health sector. Therefore, more administrative innovation about the increasing numbers of people who can access healthcare is important.
Cost benefit analysis focuses on the how beneficial the service regardless with the cost and has monetary measures. Cost effective analysis further focusses on the ways that the patients are treated especially where treatment is cheap or can be carried out cheaply using the equipment in place together with the medication in the provision of healthcare services. As such, more people are able to obtain the service more cheaply since it is cost effective which a benefit to the health care facility is. The various incentives help greatly in improving on cost benefit analyses as they provide more options for patients to undertake costly treatments. For the cost effective health services the economic challenges will be to provide enough services to cater for the whole population as more people have access to healthcare. Therefore, more health practitioners especially doctors are needed and thus more money needs to be spend to build up hospitals and other health facilities. Therefore, in considering cost benefit and cost effectiveness it is important to look at the cost of adding more people to the health care system.