What is the purpose of cost-effectiveness analysis in healthcare?

The purpose of cost-effectiveness analysis in healthcare revolves around assessing the relative value of different medical interventions by directly comparing their costs to the health outcomes they produce. This approach allows healthcare decision-makers to evaluate which treatments provide the best health benefits for the resources invested.

In this context, cost-effectiveness analysis helps in determining whether a new intervention is worth the additional cost compared to existing options. It uses metrics such as quality-adjusted life years (QALYs) or disability-adjusted life years (DALYs) to quantify health outcomes, making it possible to formulate more informed choices about resource allocation in healthcare systems.

By focusing on both costs and health outcomes, cost-effectiveness analysis facilitates optimal decision-making that can lead to improved patient care while managing limited resources effectively. This is essential for ensuring that health systems can provide high-quality care to as many patients as possible within economic constraints.