C. Cost-Benefit Analysis
Cost-Benefit Analysis is a tool used to evaluate the economic feasibility of a project or investment by comparing the costs involved with the expected benefits or returns. It involves quantifying the costs and benefits in monetary terms and then comparing them to determine whether the benefits outweigh the costs. In the context of a healthcare provider deciding on capital projects, a cost-benefit analysis would consider the costs of implementing a project, such as construction and equipment expenses, and compare them to the potential benefits, such as increased revenue from attracting more patients or gaining a marketing edge. This analysis helps the provider make informed decisions about which projects offer the best return on investment and are worth pursuing.