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HomeHomework Helphealth-economicsCost-Effectiveness of Health Technologies

Cost-Effectiveness of Health Technologies

Cost-effectiveness of health technologies refers to the evaluation of the economic efficiency of medical interventions by comparing the costs of these technologies to their health outcomes, typically measured in terms of quality-adjusted life years (QALYs) or other relevant health metrics. This analysis helps determine whether the benefits of a health technology justify its costs, aiding in resource allocation decisions in healthcare.

intermediate
3 hours
Health Economics
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Overview

Cost-effectiveness of health technologies is a vital aspect of health economics that helps determine the best use of limited healthcare resources. By evaluating the costs and health outcomes of various interventions, stakeholders can make informed decisions that maximize health benefits while minimi...

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Key Terms

Cost-Effectiveness Analysis
A method to compare the relative costs and outcomes of different health interventions.

Example: Comparing a new drug to an existing treatment.

Quality-Adjusted Life Year (QALY)
A measure that combines the quantity and quality of life.

Example: One QALY equates to one year in perfect health.

Incremental Cost-Effectiveness Ratio (ICER)
The ratio of the change in costs to the change in health outcomes.

Example: ICER = (Cost of new treatment - Cost of standard treatment) / (QALYs gained from new treatment - QALYs from standard treatment).

Budget Impact Analysis
An analysis that estimates the financial impact of adopting a new health technology.

Example: Assessing the cost implications of a new vaccine.

Health Technology Assessment (HTA)
A systematic evaluation of properties and effects of health technology.

Example: Evaluating the effectiveness of a new surgical procedure.

Utility
A measure of the satisfaction or value derived from a health outcome.

Example: A utility score of 0.8 indicates a health state valued at 80% of perfect health.

Related Topics

Health Economics
The study of how healthcare resources are allocated and utilized.
intermediate
Pharmacoeconomics
The branch of health economics that evaluates the cost and value of pharmaceuticals.
intermediate
Health Policy
The decisions and actions taken to achieve specific healthcare goals.
advanced

Key Concepts

Cost-Effectiveness AnalysisQuality-Adjusted Life Years (QALY)Incremental Cost-Effectiveness Ratio (ICER)Budget Impact Analysis