Which statement correctly distinguishes cost-saving from cost-effective?

• A. Cost-saving means more favorable outcomes for the same or lower cost.
• B. Cost-saving means less total cost with the same or worse outcome.
• C. Cost-saving means less total cost with at least the same outcome; cost-effective means more favorable outcome for the same or additional cost.
• D. Cost-saving and cost-effective are identical.

Answer: (C)

Value in healthcare hinges on what you get for what you pay. Cost-saving means you spend less money while achieving the same health outcome, or an outcome that's at least as good. In other words, you lower costs without sacrificing effectiveness. Cost-effective focuses on the balance between cost and outcome: you’re getting a more favorable health result for the same or for an additional amount of money. So the statement captures the distinction: cost-saving is less total cost with the same or better outcome, while cost-effective means paying for an improvement in outcomes that may justify the expense. A quick takeaway: save money without losing benefit equals cost-saving; paying for greater benefit and judging whether that extra cost is worth it equals cost-effectiveness.