Types of full economic evaluations
| Cost-benefit analysis | Cost-effectiveness analysis (CEA) | Cost-utility analysis (a special case of CEA) | |
|---|---|---|---|
| Unit of health outcome | Monetary units (eg, US$) | Natural units (eg, life-years gained) | Units of overall impact on length and quality of life (eg, QALY) |
| Results | Net benefits | Incremental cost-effectiveness ratio* | Incremental cost-utility ratio* |
| (B1−B2)−(C1−C2−S1+S2) | (C1−C2−S1+S2)/(E1−E2) | (C1−C2−S1+S2)/(QALY1−QALY2) |
*Ratios are calculated when both the costs and the effects (health improvements) of one therapy alternative are higher than those of another. When the costs are lower and the effects are better for one therapy, it is said to dominate the alternative (and the alternative is said to be dominated) and no ratio is presented. B1, monetary value of health outcomes of alternative 1; B2, monetary value of health outcomes of alternative 2; C1, total input costs of alternative 1; C2, total input costs of alternative 2; S1, total cost savings (economic outcomes) for alternative 1; S2, total cost savings (economic outcomes) for alternative 2; E1, health effects of alternative 1; E2, health effects of alternative 2; QALY1, quality-adjusted life-years of alternative 1; QALY2, quality-adjusted life-years of alternative 2.