Cost-Effectiveness Analysis and the Value for Money of Health Technologies

Cost-Effectiveness Analysis and the Value for Money of Health Technologies

Steven Simoens (Katholieke Universiteit Leuven, Belgium)
DOI: 10.4018/978-1-4666-0309-7.ch007

Abstract

Cost-effectiveness analysis serves as a tool to assess the value for money of a health technology. This chapter aims to review different approaches to assessing value for money of health technologies. First, the chapter discusses the methodological basis of the incremental cost-effectiveness ratio approach. Second, the chapter reviews alternative approaches such as the replacement approach, program budgeting and marginal analysis, the generalised optimisation framework, and multi-criteria decision analysis. This information will aid health care decision makers and researchers to interpret cost-effectiveness analyses and their results for the purpose of decision making.
Chapter Preview
Top

Background

Figure 1 portrays the components of a cost-effectiveness analysis of a new health technology vis-à-vis a comparator. The comparator is generally chosen to reflect common clinical practice in the setting where the cost-effectiveness analysis is undertaken. In the case of a new health technology, the comparator can be a drug or a surgical intervention. If the new health technology represents the first technology that is available to treat a specific disease, the relevant comparator may be no active therapy.

Figure 1.

Components of a cost-effectiveness analysis

Complete Chapter List

Search this Book:
Reset