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.
C
- Cost-Effectiveness Acceptability FrontierConceptCEAF, Acceptability Frontier
- The cost-effectiveness acceptability frontier (CEAF) plots the chance the option with the highest expected net benefit is cost-effective, by threshold.
- Cost-Effectiveness AnalysisConceptCEA, Cost per Outcome Analysis
- Cost-effectiveness analysis compares healthcare options by the extra cost of each extra unit of health gained, such as cost per life-year gained.
- Cost-Effectiveness CriterionTermCE Criterion, Value Threshold Standard, Threshold Criterion, Threshold Rule, Threshold Cut-Off
- The specific standard, typically a threshold, an assessment body uses to judge whether a technology's ICER represents acceptable value for money.
- Cost-Effectiveness FrontierConceptCE Frontier, Cost-Effectiveness Efficiency Frontier, Efficient Frontier in Cost-Effectiveness Analysis
- The cost-effectiveness frontier joins the strategies not ruled out by strict or extended dominance on a plot of expected cost against health effect.
- Cost-Effectiveness League TableConceptCE League Table, ICER League Table
- A cost-effectiveness league table ranks health care interventions by cost per QALY or a similar ratio so decision makers can compare value for money.
- Cost-Effectiveness PlaneConceptCE Plane, Incremental Cost-Effect Plane
- The cost-effectiveness plane graphs incremental cost (y-axis) against incremental effect (x-axis); its four quadrants show dominance or a trade-off.
- Cost-Effectiveness PolicyTermCE 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 ThresholdConceptCE Threshold, ICER Threshold, Cost per QALY Threshold, Lambda, WTP Ceiling Symbol
- A cost-effectiveness threshold is the maximum cost per QALY gained that a health system treats as value for money when deciding which treatments to fund.
- Cost-Minimisation AnalysisConceptCMA, Cost-Minimization Analysis
- Cost-minimisation analysis compares only the costs of healthcare options, and is valid only when evidence shows their health outcomes are equivalent.
- Cost-of-Illness StudyConceptCOI Study, Burden of Disease Costing, Cost-of-Illness Analysis, Cost of Illness
- A cost-of-illness study estimates the economic burden of a disease, including healthcare costs, patient and carer costs, and lost productivity.
- Cost-Offset AnalysisTermCost 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 PricingConceptCost-Plus Markup, Full-Cost Pricing
- Cost-plus pricing sets the price of a medicine or health product as its estimated unit cost plus a profit mark-up, either a percentage or a fixed amount.
- Cost-Sharing ReductionTermCSR, 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 RatioConceptCCR, Cost-Charge Ratio
- The cost-to-charge ratio (CCR) is a hospital's reported costs divided by its billed charges, used to estimate costs from the charges on patient records.
- Cost-Utility AnalysisConceptCUA, QALY-Based Cost-Effectiveness
- Cost-utility analysis is an economic evaluation that measures health gains in quality-adjusted life years (QALYs) and reports cost per QALY gained.
- CostsTerm
- Costs is the area of health economics that measures the resources used in health care, and the wider resources lost to illness, and values them in money for economic evaluation.
- Country-Specific Value SetConceptNational Value Set, Country Tariff
- A country-specific value set is a set of utility weights, elicited from one country's general public, that turns EQ-5D or similar responses into utilities.
- Coverage BroadeningTermBreadth Expansion, Population-Reach Expansion
- An expansion in the proportion of a population covered by a health financing scheme, one dimension of progress toward universal health coverage.
- Coverage DecisionConceptFunding Decision, Payer Coverage Ruling, Coverage Determination
- A coverage decision is a payer's or HTA body's formal ruling on whether a health technology will be funded, for which patients and on what conditions.
- Coverage DeepeningTermDepth Expansion, Service-Range Expansion
- An expansion in the range of services covered or depth of financial protection provided by a scheme, distinct from population breadth.
- Coverage ErrorConceptFrame Error, Coverage Bias
- Coverage error arises when the sampling frame of a health survey or register misses part of the target population or includes people outside it.
- Coverage ExpansionConceptCoverage Extension, Scope Expansion
- Coverage expansion is a policy change that extends health cover to more people, adds services or cuts cost sharing, moving towards universal coverage.
- Coverage GapConceptMedicare Part D Doughnut Hole, Prescription Coverage Band, Benefit Gap, Doughnut Hole, Coverage Shortfall
- A coverage gap is a band of drug spending that a plan covers little or not at all, best known as the Medicare Part D doughnut hole, which ended in 2025.
- Coverage Gap AnalysisTermService Gap Analysis, Unmet-Need Analysis
- An examination of the difference between health services a population needs and those it actually receives, identifying improvement priorities.
- Coverage PolicyConceptCoverage Rules, Reimbursement Policy Rules
- Coverage policy is the set of rules a health payer uses to decide which services and technologies it funds, for whom and what share of the cost it meets.
- Coverage SubmissionTermCoverage Application, Funding Submission
- A formal application submitted by a manufacturer presenting clinical and economic evidence supporting a request for coverage of a technology.
- Covered EntityTermRegulated Entity, Privacy-Regulated Organisation
- A US legal classification covering providers, health plans, and clearinghouses subject to specific patient health information protection requirements.
- Covered ServiceTermCovered Benefit, Reimbursable Service
- A healthcare service for which an insurance plan has agreed to pay, subject to the plan's specific terms and cost-sharing requirements.
- Cox Proportional HazardsConceptCox Model, Cox Regression
- The Cox proportional hazards model is a semi-parametric survival regression that estimates hazard ratios without specifying the baseline hazard.
- Cox-Snell ResidualConceptCox-Snell Residuals
- A Cox-Snell residual is a survival model's fitted cumulative hazard at a patient's observed time, used to check overall fit against a unit exponential.
- Cream SkimmingConceptCherry Picking, Favourable Risk Selection
- Cream skimming is when an insurer or provider attracts people expected to cost less than it is paid for them and deters those expected to cost more.
- Credence GoodConceptCredence Product, Trust Good
- A credence good is a good or service whose quality or need a buyer cannot judge even after use, such as medical care, where the expert seller knows more.
- CredentialingConceptPrivileging, Qualification Verification, Credential Verification, Primary Source Verification, Credential Check
- Credentialing is how a hospital or health insurer verifies a clinician's licence, certification and disciplinary record before they treat its patients.
- Credibility AssessmentConceptCredibility Evaluation, Model Trustworthiness Review
- An overall evaluation of whether a model's structure, evidence base, and validation results provide enough confidence to inform a real decision.
- Credible IntervalConceptBayesian Interval, Posterior Interval
- A credible interval is a Bayesian range that contains an unknown parameter, such as a treatment effect, with a stated posterior probability, often 95%.
- Credible Interval EstimationConceptBayesian Interval Estimation, Posterior Interval Estimation
- The Bayesian process of calculating a range of plausible values for a parameter based on its estimated posterior probability distribution.
- Crisis InterventionTermCrisis Care, Acute Crisis Response
- A short-term, intensive treatment for an acute mental health crisis, intended to stabilise the situation and connect the individual with ongoing care.
- CRISPRTermCas9 System, Guided Genome Editing
- A gene editing technology using a guided enzyme system to precisely target and modify specific DNA sequences, underlying a growing gene therapy pipeline.
- Criterion ValidityConceptCriterion-Related Validity, Reference-Standard Validity
- Criterion validity is the degree to which a measure's scores agree with a gold standard for the same concept, assessed at the same time or later.
- Critical Access HospitalTermCAH, Small Rural Hospital Designation
- A designation for small, rural hospitals meeting defined criteria, qualifying them for enhanced Medicare reimbursement to support financial viability.
- Critical AppraisalConceptStudy Appraisal, Evidence Critical Review
- Critical appraisal is the structured judgement of whether a study, model or economic evaluation is sound and relevant enough to inform a health decision.
- Critical ValueConceptRejection Threshold, Significance Cutoff
- A critical value is a cutoff on a test statistic's reference distribution that defines a rejection boundary for a specified hypothesis test and error level.
- Cross Validity AssessmentTermCross-Validity Check, Generalisation Assessment
- An evaluation of whether a model's predictions remain accurate when applied to a different but related dataset or population than the original.
- Cross-Cultural ValidityConceptMeasurement Invariance, Cross-Cultural Equivalence
- Cross-cultural validity is how far items in a translated or culturally adapted health questionnaire, such as the EQ-5D, perform like the original version.
- Cross-Price ElasticityConceptCross-Elasticity of Demand, Cross Elasticity
- Cross-price elasticity measures how demand for one good responds to a change in another good's price: positive for substitutes, negative for complements.
- Cross-Sectional DataTermCross-Sectional Dataset, Snapshot Data
- Data collected from a population at a single point in time, capturing exposure and outcome status simultaneously without following individuals over time.
- Cross-Sectional DesignConceptPrevalence Study Design, Point-Prevalence Design
- A cross-sectional design is an observational design that measures exposure and outcome in a population at one point in time, often to estimate prevalence.
- Cross-Sectional StudyTermPrevalence Study, Point-in-Time Study
- A study examining a defined population at a single point in time, measuring prevalence without following participants over time.
- Cross-ValidationConceptOut-of-Sample Validation, Resampling Validation
- Cross-validation estimates how well a prediction model, such as a cost or risk model, will perform on new data by testing it on data held out from fitting.
- Crossover DesignConceptCrossover Trial Design, Within-Subject Design
- Crossover design is a clinical trial design in which each participant receives two or more treatments in a randomised order and acts as their own control.
