Investment Appraisal examines the impact of major investment with a view to obtaining specific long term benefits. The task is to weigh the costs against the perceived and anticipated benefits.

e.g. A Hospital rebuilding programme

Capital Costs versus Increased efficiency of a modern building, opportunity to perform to a higher standard, more effective use of staff time, patient access, staff morale etc. etc.

Option Appraisal examines 3 or 4 possible solutions to a problem and scores each against key weighted factors like

Value for Money

Health Gain

Professional acceptability

Politics etc.

A scoring system enables a global score to be produced for each option and then for them to be placed in priority order according to that scoring.

It also provides a transparent system of decision making and a decision trail which can be retraced and re-examined if conditions change.