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Naziim csalaan
CEA APPLLICATIONS
References
COST-EFFECTIVENESS ANALYSIS (CEA)
is a form of economic analysis that compares the
relative costs and outcomes (effects) of different
courses of action. Cost-effectiveness analysis is
distinct from cost–benefit analysis, which assigns a
monetary value to the measure of effect.
Cost-effectiveness analysis is often used in the
field of health services, where it may be
inappropriate to monetize health effect.
Cost-effectiveness analysis
has been defined by the National Institute
for Health and Clinical Excellence (NICE)
as an economic study design in which
consequences of different interventions
are measured using a single outcome,
usually in ‘natural’ units (for example,
life-years gained, deaths avoided, heart
attacks avoided or cases detected).
PURPOSE OF COST EFFECTIVENESS ANALYSIS
To identify exclude programe that is wasting
resources.
To provide general information on the relative costs
and health benefits of different alternatives.
To evalute the interventions in terms of efficacy
(cost effective ratio) absolute health gain and
affordability (absolute cost).
HOW IS CEA DIFFERENT FROM COST-
BENEFIT ANALYSIS?
Outcomes
• CBA: Ratio of costs of program to all identified
outcomes (benefits)
• CEA: Ratio of costs of program to one defined
outcome (benefit)
= 100,000 – 125,000
1,500 – 1,300
= –25,000
200
= –125
The negative ICER for P2 means that by
adopting P2 rather than P1 there is an
improvement in life-years gained and a
reduction in costs. The ICER for P3 works out
to be 120, which means that it costs £120 to
generate each additional life-year gained
compared with P2.
Alternatives that are more expensive and
CEA APPLLICATIONS
Planning and management .
Policy and decision making.
Resource allocation.