This paper explains marginal analysis is the
quantification of the time taken to serve the patient as the basis of cost,
and any additional incurring dollars in this time frame are considered the marginal cost. The author stresses that, in health care
organizations, there is no standardized service; therefore, quantifying health care service has become a great issue, and the marginal analysis method has become one of the keys for detecting the overall outcome of servicing each patient. The paper stresses that health care organizations run the risk of high costs and investments when they do not monitor operational costs through marginal analysis, which detects unnecessary costs associated with the patient care. Table of Content Introduction Marginal Analysis Purpose Statement Discussion / Literature Review Conclusion