Cost-utility analysis is a type of cost-effectiveness analysis in which the (incremental) cost per quality-adjusted life year (QALY), or some other preference-based valuation of heath outcome, is estimated. Two alternative interventions are assessed by comparing how many additional QALYs are gained at what additional cost. The use of QALY as a measure of health outcome enables comparisons to be made across disease areas, particularly useful for broad-based resource allocation decision-making. Cost-utility analyses are frequently required by health technology assessment agencies, such as the National Institute for Health and Care Excellence (NICE) in the UK.
How to cite: Cost-Utility Analysis [online]. (2016). York; York Health Economics Consortium; 2016. https://yhec.co.uk/glossary/cost-utility-analysis/