Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
A
- Ablation EconomicsEconomics of Ablation, Ablation Cost-Effectiveness
- The application of health economic evaluation to ablation procedures destroying targeted tissue, comparing procedural cost against long-term ongoing management or repeat interventions.
- Acquisition CostPurchase Cost, Invoice Cost
- The price a provider or payer pays to obtain a drug or medical product, before accounting for administration or monitoring costs.
C
- Cost-Effectiveness PolicyCE Policy Analysis, Cost-Effectiveness Appraisal Policy
- A policy analysis approach comparing costs and non-monetary outcomes, such as health gains, without converting outcomes into monetary terms.
- Cost-Effectiveness ThresholdCE Threshold, ICER Threshold
- A cost-effectiveness threshold is a benchmark used to judge whether the additional health produced by an intervention is worth its additional cost, usually expressed as an amount per QALY or another unit of health outcome.
- Cost-Minimisation AnalysisCMA, Cost-Minimization Analysis
- Cost-minimisation analysis compares the costs of healthcare alternatives only after reliable evidence shows that their relevant outcomes do not differ meaningfully.
- Cost-Offset AnalysisCost Offset Study, Savings Offset Analysis
- An analysis examining whether the extra cost of an intervention is partly or fully offset by savings elsewhere, such as fewer hospital admissions.
- Cost-Plus PricingCost-Plus Markup, Full-Cost Pricing
- A cost-based pricing form adding a fixed markup percentage or amount to production cost to determine the selling price.
- Cost-Sharing ReductionCSR, Cost-Sharing Subsidy
- A policy or benefit feature lowering the out-of-pocket amount a patient pays for healthcare, typically targeted at lower-income individuals.
- Cost-to-Charge RatioCCR, Cost-Charge Ratio
- A cost-to-charge ratio is a provider accounting cost divided by its corresponding billed charges for a defined set of services and period, used to estimate costs from charge data when direct patient-level costs are unavailable.
D
- Depression BurdenDepression Disease Burden, Cost of Depression
- The total impact of depression on individuals and society, covering treatment costs, lost productivity, and reduced quality of life.
- Discounting CostsCost Discounting, Present-Valuing Costs
- The application of a discount rate to future costs within an economic evaluation, converting them into a common present-day value.
E
- Economic BurdenCost Burden, Societal Cost Burden
- The total cost imposed on a health system, individuals, or society by a specific disease, injury, or risk factor.
- Economic Data HealthHealth Economic Data, Cost and Resource Data
- Data specifically capturing the costs, resource use, and financial aspects of healthcare delivery, distinct from clinical outcome data.
- Economic EvaluationHealth Economic Appraisal, Cost-Outcome Analysis
- Economic evaluation compares the costs and outcomes of healthcare alternatives to inform decisions about value and limited resource allocation.
- Economic EvidenceCost-Effectiveness Evidence, Value Evidence
- Data and analysis addressing the costs, resource use, and cost-effectiveness of health interventions, distinct from clinical evidence on safety and efficacy alone.
- Economic Evidence RequirementsEconomic Submission Requirements, Cost-Evidence Standards
- The specific standards an assessment body sets regarding the type, quality, and format of economic evidence a manufacturer must submit.
- Economic Model SubmissionModel Submission, Cost-Effectiveness Model Dossier
- A formal submission of a health economic decision-analytic model, with supporting documentation, provided as part of a coverage application.
- Economic ReviewEconomic Evidence Review, Cost-Effectiveness Review
- An evaluation of the economic evidence, including a submitted cost-effectiveness analysis, typically conducted by an independent technical reviewer.
- Efficiency FrontierEfficient Frontier, Cost-Effect Boundary
- In cost-effectiveness analysis, an efficiency frontier connects the available strategies that remain after excluding options subject to simple or extended dominance.
- Episode CostCost per Episode, Care-Episode Expense
- The total expense of a defined clinical episode, such as a hospital admission, from its beginning through resolution.
- Expansion PathCost-Minimising Path, Optimal Input Trajectory
- The set of cost-minimising input combinations as output rises, holding relative input prices constant.
F
- Financial BarrierCost Barrier, Affordability Barrier
- An obstacle to healthcare arising from cost, including high out-of-pocket expenses, lack of insurance, or the opportunity cost of time off work.
- Financial EfficiencyFiscal Efficiency, Cost Efficiency of Finance
- A measure of how effectively an organisation converts financial resources into patient care activity and outcomes, avoiding unnecessary spending.
- Financial ProtectionFinancial Risk Protection, Cost Burden Shielding
- The degree to which a financing system shields individuals from healthcare cost burden, covering both service breadth and protection depth.
- Foregone CareCost-Related Nonreceipt, Skipped Care
- Healthcare an individual needed but did not receive, most commonly due to cost, a coping strategy of last resort.
H
- Health Economic ModelHealth Economics Model, Cost-Effectiveness Model
- A mathematical representation of the costs and health outcomes of alternative interventions over a defined time horizon, used when single-study data are insufficient.
- High-Value CareHigh-Value Healthcare, Cost-Effective Care
- Healthcare providing substantial benefit relative to its cost and potential harms, the outcome quality improvement and cost-effectiveness aim to promote.
I
- Immunotherapy CostImmuno-Oncology Cost, Cost of Immunotherapy
- The expense of cancer treatments harnessing the body's immune system to fight cancer cells, generally priced substantially higher than conventional chemotherapy.
- Incremental Cost EstimationCost Difference Estimation, Incremental Costing
- The process of estimating the difference in cost between two interventions, rather than each option's total cost in isolation.
- Incremental Cost-Effectiveness Ratio (ICER)Incremental Cost per Unit, Cost-Effectiveness Ratio
- The incremental cost-effectiveness ratio, or ICER, is incremental cost divided by incremental effectiveness, expressing the additional cost per additional unit of outcome when ratio interpretation is meaningful.
- Induced InnovationInsurance-Driven Innovation, Cost-Shielded Innovation
- The theory that health insurance, by shielding patients from full costs, steers medical innovation toward more expensive, quality-enhancing treatments rather than cost-reducing ones.
- Insulin CostCost of Insulin, Insulin Price
- The price of insulin required for diabetes management, a significant and closely scrutinised component of overall diabetes treatment cost.
L
- LambdaCost-Effectiveness Threshold Symbol, WTP Ceiling Symbol
- The symbol conventionally used for the cost-effectiveness threshold, or willingness to pay per unit of health effect, in net monetary benefit analysis.
M
- Marginal CostExtra-Unit Cost, Cost at the Margin
- Marginal cost is the change in total economic cost caused by producing one additional unit of output at a specified level of activity and over a specified time horizon.
N
- Non-Medical SwitchingPayer-Driven Switching, Cost-Driven Switching
- A situation where a patient's medication is changed for reasons unrelated to clinical response, such as an insurer's formulary change.
O
- Outbreak CostCost of Outbreak, Epidemic Cost
- The total economic burden of an infectious disease outbreak, covering direct healthcare costs, public health response spending, and productivity losses.
P
- Pandemic CostCost of Pandemic, Pandemic Economic Burden
- The total economic burden of a pandemic, covering direct healthcare costs, public health response spending, and broader economic disruption beyond health.
- Patient CapCost Cap, Patient Cost Ceiling
- A limit on the number of patients for whom a payer will reimburse a specific treatment within a defined period.
- Per Patient CostCost per Patient, Per-Case Cost
- The average expense of treating a single patient with a given condition, found by dividing total programme cost by patients treated.
- PerspectiveAnalytic Viewpoint, Costing Standpoint
- The viewpoint adopted in an economic evaluation that determines which categories of cost and outcome are included, such as payer, patient, or societal.
- Productive EfficiencyProduction Efficiency, Cost-Minimising Efficiency
- A condition in which a given output level is produced using the minimum possible inputs, synonymous with technical efficiency.
R
- Regulatory CostCompliance Cost, Cost of Regulation
- The expense of meeting regulatory authority requirements when developing and gaining approval for a new health technology, including documentation and submissions.
- Resource IdentificationResource Enumeration, Cost Item Identification
- The process of determining which categories of resource use, such as staff time and supplies, are relevant when costing an intervention.
- Retrospective PaymentRetrospective Reimbursement, Cost-Reimbursement Payment
- A methodology reimbursing a provider based on actual costs or charges incurred, determined after care has been provided, unlike prospective payment.
S
- SignalingMarket Signalling, Costly Signalling
- An action taken by an informed party to credibly convey private information to an uninformed party that could not otherwise be verified.
T
- Targeted Therapy CostCost of Targeted Therapy, Precision Drug Cost
- The expense of cancer treatments targeting a specific molecular tumour feature, generally priced at a premium over conventional chemotherapy.
- Threshold ApproachThreshold Decision Rule, Cost-Effectiveness Cut-Off Rule
- A decision-making method that classifies an intervention as cost-effective or not based on whether its ICER falls below a predetermined threshold.
- Trial CostCost of Running a Trial, Research Trial Expense
- The total expense of designing, conducting, and analysing a clinical trial, including site costs, recruitment, data management, and regulatory compliance.
V
- Vaccination CostImmunisation Cost, Cost of Vaccination
- The total resources required to deliver a vaccination programme, covering the vaccine product, administration, cold chain storage, and delivery infrastructure.
W
- Willingness-to-Pay ThresholdWTP Threshold, Cost-Effectiveness Willingness-to-Pay
- The maximum amount a decision-maker is prepared to pay for an additional unit of health benefit, used to judge acceptable value for money.