Economic Evaluations

Question 1

What is an economic evaluation?

Answer 1

• the comparative analysis of two or more interventions in terms of their cost and consequences
• it is the assessment of different programs based on their input given vs results/outcomes generated

Question 2

Economic evaluation is also known as as…

Answer 2

economic appraisal

Question 3

What is the importance of economic evaluations?

Answer 3

1. helps prioritize the programs and make the best decision for optimal resource allocation
   - aids decision makers with their difficult choices in allocating health care resources, setting priorities and molding health policy
2. important tools for assessing economic feasibility and efficiency of health interventions
   - to improve efficiency: the way inputs can be converted into outputs

Question 4

List the types of economic evaluation methods

Answer 4

CBA
CMA
CEA
CUA

Question 5

Describe the cost benefit analysis

Answer 5

Cost of the intervention is compared with the benefit realized from the intervention
Both cost and benefit is measured in terms of monetary units
Net benefit = benefit - costs
If the benefit exceeds the cost incurred during the intervention, the intervention should be continued

Question 6

Describe the cost minimization analysis

Answer 6

Costs of two or more interventions achieving identical outcomes is measured
The intervention incurring the lowest cost is then chosen
It should be strictly noted that the intervention can only be conducted when the outcomes of the comparing interventions are the same

Question 7

Describe the cost effective analysis

Answer 7

Cost is measured against the effectiveness of the intervention
The consequences of the comparing interventions may vary
These consequences can be expressed in common natural units like life years gained, saved years of life etc or improvement in functional status (BP, cholesterol etc)
Limitation : Difficult to compare interventions with differing natural effects

Question 8

Describe the cost utility analysis

Answer 8

Cost incurred in the intervention is measured against the utility related to health
Utility refers to QALY and DALY
It’s specially used when there are multiple objectives of the program and when both quality and quantity of life are important to know
Used to make policy level decisions