American International Journal of Social Science

Risk Cash-Flow Evaluation of the E-Health Implementation Project in the Slovak Republic
Stanislav Sendek

Abstract
SENDEK, S.: Risk cash-flow evaluation of the e-health implementation project in the Slovak Republic. 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. Introducing e-health tools, such as electronic health records or electronic prescription, is preceded by substantial initial investments as well as accompanied by operation costs during the duration of the project. 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. According to the type of an investment activity, especially in the healthcare sector, it is necessary to identify and evaluate potential financial impacts. One of the solutions, currently popular in business world, is applying the computer simulation, based on the Latin Hypercube sampling method. By applying the method, potential financial effects of events could be evaluated; events - which might occur in combining different inputs and outputs, predictable 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.e-Health, cost-benefit analysis, simulated evaluation, Latin Hypercube sampling method, net present value

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