Net monetary benefit (NMB) is a summary statistic that represents the value of an intervention in monetary terms when a willingness to pay threshold for a unit of benefit (for example a measure of health outcome or QALY) is known. The use of NMB scales both health outcomes and use of resources to costs, with the result that comparisons without the use of ratios (such as in ICERs) can be made. NMB is calculated as (incremental benefit x threshold) – incremental cost. Incremental NMB measures the difference in NMB between alternative interventions, a positive incremental NMB indicating that the intervention is cost-effective compared with the alternative at the given willingness-to-pay threshold. In this case the cost to derive the benefit is less than the maximum amount that the decision-maker would be willing to pay for this benefit.
How to cite: Net Monetary Benefit [online]. (2016). York; York Health Economics Consortium; 2016. https://yhec.co.uk/glossary/net-monetary-benefit/