What are the methods of cost-effectiveness analysis?

What are the methods of cost-effectiveness analysis?

Cost-effectiveness analysis (CEA) evaluates the relative costs and outcomes of different interventions. Common methods include: 1. Incremental Cost-Effectiveness Ratio (ICER) 2. Cost-Utility Analysis (CUA) 3. Cost-Benefit Analysis (CBA) 4. Markov Models. Would you like to know more about any specific method?

Can you explain the Incremental Cost-Effectiveness Ratio?

Sure! The Incremental Cost-Effectiveness Ratio (ICER) measures the additional cost per additional unit of effect (like a year of life gained) of one intervention compared to another. It's calculated by taking the difference in costs between two interventions and dividing it by the difference in their effectiveness.

What is the difference between Cost-Utility Analysis and Cost-Benefit Analysis?

Cost-Utility Analysis (CUA) focuses on the cost per quality-adjusted life year (QALY) gained, while Cost-Benefit Analysis (CBA) translates outcomes into monetary values, allowing for a direct comparison of costs and benefits. CUA is often used in healthcare, whereas CBA can be applied in various sectors.

How do you choose which method to use?

Choosing a method depends on the context of the analysis, the type of interventions being compared, and the available data. If health outcomes are a priority, CUA might be best. For broader economic evaluations, CBA could be more appropriate. It's essential to consider the goals of the analysis.