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Distributional cost-effectiveness analysis (DCEA) is an extension of cost-effectiveness analysis (CEA) that incorporates concern for both the average levels of outcomes as well as the distribution of outcomes. It is particularly useful when evaluating interventions to tackle health inequality. [1] [2]
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. [ 1 ]
The incremental cost-effectiveness ratio (ICER) is a statistic used in cost-effectiveness analysis to summarise the cost-effectiveness of a health care intervention. It is defined by the difference in cost between two possible interventions, divided by the difference in their effect.
PERT network chart for a seven-month project with five milestones (10 through 50) and six activities (A through F).. The program evaluation and review technique (PERT) is a statistical tool used in project management, which was designed to analyze and represent the tasks involved in completing a given project.
Comparative effectiveness research adopts many of the same approaches and methodologies as cost-effectiveness analysis, including the use of incremental cost-effectiveness ratios (ICERs) and quality-adjusted life years (QALYs). An important component of CER is the concept of pragmatic randomised controlled trials. [4]
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The net benefit of intervention A over intervention B is therefore 1.8 – 1.5 = 0.3 QALYs. The incremental cost-effectiveness ratio (ICER) is the ratio between the difference in costs and the difference in benefits of two interventions. The ICER may be stated as (C1 – C0)/(E1 – E0) in a simple example where C0 and E0 represent the cost and ...
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