Cost-effectiveness analysis

A cost-effectiveness analysis (CEA) is a type of economic evaluation that evaluates the effectiveness of two or more interventions relative to their cost. These evaluations can be used by decision-makers to maximise health outcomes while minimising opportunity costs. In a CEA, health outcomes are measured in a natural, non-monetary unit. These outcomes can be a specific clinical outcome (e.g. cost per event avoided or cost per life-year gained), or it can be a broader measure (e.g. the quality-adjusted life year (QALY) or disability-adjusted life year). CEAs with QALYs as the outcome can also be called cost-utility analyses.
If a CEA identifies that an intervention is more effective at producing health benefits and is associated with net cost savings, the intervention is considered dominant. If a CEA shows that an intervention is more effective but also most costly, decision-makers must weigh the additional costs against the additional health outcomes.