First, we must make sure we are putting the same amount of resource into each use. We
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First, we must make sure we are putting the same amount of resource into each use. We need a common denominator: lives saved per $1 spent. We get this by dividing the lives saved in each facility by their respective operational costs. But we will use a common denominator of $100,000 instead of $1 to avoid tiny decimals.
Step 1: Take the total cost of each facility and divide by $100,000. That gives you total cost expressed as units of $100,000. Use that smaller number to divide into the lives saved.
Step 2: Divide the units of $100,000 into the lives saved by each facility. What are the lives saved per $100,000 spent for each facility? (Calculate to the third decimal place.)
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