Cost is not a four-letter word: focus on what you can change

In this second article in a series on health economics, we focus on cost concepts that are important for leaders who must decide how to spend scarce organizational resources like time and money. Building on the first article’s focus on efficiency, this article delves into the important ideas of expected, fixed, variable, and marginal costs. Knowledge of these types of costs can help leaders successfully identify optimal courses of action. An understanding of these concepts can also help leaders communicate.