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Cost-Effectiveness

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Encyclopedia of Public Health

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Definition

A cost‐effectiveness analysis is one type of analysis undertaken in health economic evaluation . It compares two or more health technologies by measuring the additional costs and the additional consequences of each alternative, and dividing the incremental costs by the incremental outcomes. The result of a cost‐effectiveness analysis is the incremental cost‐effectiveness ratio. The feature that distinguishes a cost‐effectiveness analysis from other forms of economic evaluation, such as a cost-utility or cost-benefit analysis, is that the outcomes of all alternatives are measured in identical natural units related to the specific clinical objective of the alternatives.

Basic Characteristics

The major methodological approaches of health economic analyses are cost‐minimization analysis , cost‐effectiveness analysis , cost-utility analysis , and cost-benefit analysis (Drummond et al. 2005; CADTH 2006). Cost‐effectiveness analysis is the most prominent and wide-spread form of...

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References

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Author information

Authors and Affiliations

  1. Health Economics Outcomes Research, Sanofi-Aventis Pharma GmbH, Berlin, Germany

    Franz Hessel

Authors
  1. Franz Hessel
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Editor information

Editors and Affiliations

  1. Network EUROlifestyle Research Association Public Health Saxony-Saxony Anhalt e.V. Medical Faculty, University of Technology, Fiedlerstr. 27, 01307, Dresden, Germany

    Wilhelm Kirch (Professor Dr. Dr.) (Professor Dr. Dr.)

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© 2008 Springer-Verlag

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Hessel, F. (2008). Cost-Effectiveness . In: Kirch, W. (eds) Encyclopedia of Public Health. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-5614-7_585

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  • DOI: https://doi.org/10.1007/978-1-4020-5614-7_585

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-1-4020-5613-0

  • Online ISBN: 978-1-4020-5614-7

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