Cost-effectiveness analysis (CEA)

Cost-effectiveness analysis (CEA) is an economic analysis that assesses both the costs and the effects of a health intervention.
Costs are measured in monetary units. Effects are measured in units of outcomes experienced such as life year gained (LYG), quality adjusted life of years (QALY) or cases of disease prevented. Whether the outcome of an analysis is cost-effective depends on the cost-effectiveness threshold value.
CEA can identify the alternative that, for a given output level, minimises the actual value of costs, or, alternatively, for a given cost, maximises the outcome level.

Last update: 7 June 2023

Source: PPRI