The concern with using costs per patient-year as the rule to allocate resources among its programs is that it emphasizes “input” to the exclusion of “outputs” or effectiveness of the programs. After-all, Yu’s goal is to cure patients while controlling costs, not minimize costs per-patient year. The problem, of course, is measuring outputs. Unlike many manufacturing companies, where the outputs are obvious because they are tangible and measurable, the outputs of service organizations are more difficult to measure. Examples are “cured” patients as distinguished from “processed” or “discharged” patients, “educated” as distinguished from “partially educated” students, and so on.