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Theories of Health Care Cost-Effectiveness Analysis

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  • Ernst, Richard

Abstract

The core of health care cost-effectiveness analysis is a set of decision rules for enabling public health care agencies to choose the most socially beneficial treatments to provide to or insure for their patient communities. Inappropriate versions of these rules are used by the national and provincial health services of the UK and several of the commonwealth countries, and they are also commonly used in published cost-effectiveness analyses. Here the correct decision rules are derived from standard utilitarian welfare premises and two different models of the optimizing behavior of a rational health care agency. The methods of probabilistic cost-effectiveness are discussed, and statistical tests are proposed for applying the decision rules under conditions of uncertainty.

Suggested Citation

  • Ernst, Richard, 2017. "Theories of Health Care Cost-Effectiveness Analysis," SocArXiv gjbcp, Center for Open Science.
    • Handle: RePEc:osf:socarx:gjbcp
    DOI: 10.31219/osf.io/gjbcp
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    References listed on IDEAS

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