What are the different types of models for economic evaluations?
There are a number of different health economic models with examples described below.
A cost-benefit analysis (CBA) aims to determine whether the economic value of an intervention can justify its costs, by comparing the costs of two or more alternatives and reviewing the return on investment. For example, all the benefits of an intervention that reduces the complications of a stroke.
Cost Benefit Analysis
Cost Utility Analysis
A cost utility analysis (CUA) aims to determine cost in terms of utilities, to say in quantity and quality of life. The incremental cost of a programme from a particular point of view is compared to the incremental health improvement expressed in the unit of quality adjusted life years (QALYs). For example, the cost of cancer treatment for an increase in life expectancy of 1 year.
A budget impact analysis (BIM) aims to estimate the change in expenditure to a specific budget holder and primarily assesses financial affordability of an intervention. For example, the costs to a provider of online consultations in place of face-to-face.
Budget Impact Analysis (or Model)
Cost Effectiveness Analysis
A cost effectiveness analysis (CEA) aims to examine the costs of various approaches to achieving a specific health outcome. The analysis measures outcomes in ‘natural units’. For example, the cost of an intervention for diabetes per kg lost.
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