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Types of Economic
Evaluation
The basic objectives
of an economic analysis are to identify, measure, and value
the comparative costs and effects of alternative health care interventions.
The alternatives could include different medical technologies
for a particular indication, such as medication vs. surgery for
peptic ulcer. Alternatives also could include preventive vs. curative
techniques, different types of diagnostic workups, or choices
of setting for delivery of care.
The four common types
of economic evaluation are cost-minimization analysis, cost-effectiveness
analysis, cost-utility analysis, and cost-benefit analysis. These
analyses address questions of economic efficiency--the extent
to which limited resources are used to produce the maximum possible
benefits. Full economic evaluation must (1) consider at least
two alternative health care interventions; and (2) consider simultaneously
both the costs and the effects of the interventions.
From any perspective
of analysis, resources and their costs are measured and valued
in the same way across the four types of economic analysis.
In contrast, the effects obtained with the given alternatives
are measured and valued quite differently with each form of
analysis.
To
learn more, click on each type of analysis below.
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