CHAPTER 2

PRINCIPLES OF COST-EFFECTIVENESS ANALYSIS

OVERVIEW

SO FAR, you have learned what cost-effectiveness is and how it is used to make policy. This chapter introduces the basic concepts behind cost-effectiveness analysis. We explore the different types of analyses, how costs are tabulated, how health-related quality of life is measured, and how QALYs are generated. You will also learn how to interpret cost-effectiveness ratios in more detail.

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THE PERSPECTIVE OF A COST-EFFECTIVENESS ANALYSIS

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