Research Techniques Made Simple: Cost-Effectiveness Analysis

Abstract

Cost-effectiveness analysis (CEA) is a research method used to determine the clinical benefit-to-cost ratio of a given intervention. CEA offers a standardized means of comparing cost-effectiveness among interventions. Changes in quality-adjusted life-years, disability-adjusted life-years, or survival and mortality are some of the common clinical benefit measures incorporated into CEA. Because accounting for all associated costs and benefits of an intervention is complex and potentially introduces uncertainty into the analysis, sensitivity analyses can be performed to test the analytic model under varying conditions. CEA informs the identification of high-value clinical practices and can be used to evaluate preventative, diagnostic, and therapeutic interventions in dermatology.