IEC SRD 63234-1:2020 provides a descriptive framework and template for the economic evaluation of the implementation of technology-supported home healthcare, wellness or AAL services. IEC SRD 63234-2:2020 provides an example of the use of the framework, specifically analysis and economic evaluation of the implementation of technology-supported, remote, in-home monitoring of patients (AAL care recipients) with chronic diseases.
This analysis is completed from the point of view of the healthcare system/services funder (e.g. the government in a state-sponsored healthcare system or possibly a health management/health insurance company in a privately funded system).
This document is structured like IEC SRD 63234-1:2020, to provide a means of capturing data for the Reference Scenario (the current means of providing care, also known as 'usual care', to the target population of members of the population with one or more chronic diseases living at home), compared against an Alternate Scenario (the deployment of an AAL service which provides remote patient monitoring). Standard economic measures have been estimated (using an electronic spreadsheet) including Return on Investment (ROI), Net Present Value (NPV), and Payback Period of the investment.

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IEC SRD 63234-1:2020 provides a descriptive framework and template for the economic evaluation of the implementation of technology-supported home healthcare or wellness services, or AAL services that support communications, transportation, etc. as defined in a series of AAL use cases. The financial analysis is completed from the point of view of the healthcare services funder, aged care services funder, or similar governmental or non-governmental organization (e.g. the government in a state-sponsored system or possibly a health management/health insurance company in a privately funded system, a private or governmental organization financing delivery of home support or specialized transportation services).
This document is structured to provide a means of capturing data for a Reference Scenario (typically the current means of providing care, often known as 'usual care', to the target patient population) to compare against an Alternate Scenario (the service or technology intervention) for an economic comparison. Standard economic measures can be estimated (using an electronic spreadsheet or other analysis tool) such as Return on Investment (ROI), Net Present Value (NPV), and Payback Period of the investment.
This document is applicable to all potential AAL services and AAL systems that may be developed or the development and manufacture of any of the underlying components (whether hardware or software).

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SIGNIFICANCE AND USE
4.1 Use of this classification will improve communication among all the stakeholders involved with preparing, evaluating, and using cost estimates.  
4.2 The various parties that use cost estimates often misinterpret the quality and value of the information available to prepare cost estimates, the various methods employed during the estimating process, the accuracy level expected from estimates, and the level of risk associated with estimates.  
4.3 This classification applies the degree of project definition as the primary characteristic for determining an estimate’s classification.  
4.4 Using this classification will help those involved with project estimates to avoid misinterpretation of the various classes of cost estimates and to avoid their misapplication and misrepresentation. Improving communications about estimate classifications reduces business costs and project cycle times by avoiding inappropriate business and financial decisions, actions, delays, or disputes caused by misunderstandings of cost estimates and what they are expected to represent.  
4.5 This classification is intended to be generic and so provide a system for the classification of cost estimates in any industry. There are also references to specific industries, for cost estimate classification as applied in: AACE International, Process Industry 18R-97, and AACE International, Building/General Construction Industry 56R-08.  
4.6 Estimate classifications provide valuable additional reporting information when used as an adjunct to Practice E1804.
SCOPE
1.1 This classification provides a generic classification system for cost estimates and provides guidelines for applying the classification to cost estimates.  
1.2 This classification maps the phases and stages of cost estimating to a generic maturity and quality matrix, keyed to a degree of project definition, that can be applied across a wide variety of industries.  
1.3 The Cost Estimate Classification System has been developed in a way that:  
1.3.1 provides a common understanding of the concepts involved with classifying cost estimates;  
1.3.2 defines and correlates the major characteristics used in classifying cost estimates, and;  
1.3.3 uses the degree of project definition as the primary characteristic used to categorize estimate classes.  
1.4 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.

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