What are some examples of cost-effectiveness analysis?

What are some examples of cost-effectiveness analysis?

Cost-effectiveness analysis (CEA) compares the relative costs and outcomes of different interventions. For example, in healthcare, it might compare the cost of a new drug versus an existing one in terms of quality-adjusted life years (QALYs).

Can you give me a specific example in healthcare?

Sure! One example is the analysis of a new cancer treatment. Researchers might evaluate its cost per QALY gained compared to standard treatment, helping to determine if it's worth the investment.

What about examples outside of healthcare?

In education, a CEA might compare the costs of different teaching methods, assessing which method yields better student performance per dollar spent.

How do you conduct a cost-effectiveness analysis?

You start by defining the interventions, measuring costs and outcomes, and then calculating the cost-effectiveness ratio to compare them.