Budget Impact Model
The analytical structure, typically built in a spreadsheet, used to estimate the financial consequences of adopting a new health technology.
Encyclopaedia
Explore comprehensive, evidence-informed explanations of key health economics concepts, including their development, application and relationships to other concepts. Published entries are validated through human expert review.
Budget Impact Modelling
The practice of building and applying budget impact models to estimate the financial consequences of adopting a health technology.
Choice Experiment
A stated preference method in which respondents repeatedly pick their preferred option from sets of hypothetical alternatives that vary across defined attributes.
Choice-Based Conjoint
A form of conjoint analysis in which respondents choose their preferred option from a set of alternatives rather than rating each one individually.
Clinical Benefit
A favourable effect of an intervention on how a patient feels, functions or survives relative to an appropriate comparator.
Comparator
The alternative intervention, treatment, or strategy against which a new option is evaluated in an economic evaluation.
Compensating Variation
A monetary measure of the change in wellbeing from a price or policy change, the sum needed after the change to restore original utility.
Conjoint Analysis
A method for measuring how individuals value different attributes of a good or service by analysing their evaluations of combined alternatives.
Consumer Choice
The process by which individuals select among available goods and services to maximise satisfaction given their preferences and budget constraints.
Consumer Surplus
The difference between the maximum a consumer would pay for a good and what they actually pay, the net benefit of the transaction.
Contingent Valuation
A stated preference method that elicits willingness to pay for a good or outcome by describing a hypothetical scenario and asking for a monetary value.
Contingent Valuation Method
The formal methodology underlying contingent valuation surveys, covering scenario design, elicitation format, and survey administration procedures.
Contract Theory
A branch of economic theory analysing how agreements can be structured to align incentives when information is imperfect or unequally distributed.
Cost
The economic value of resources consumed or displaced when a healthcare service, programme or intervention is provided.
Cost Allocation
The process of assigning shared or indirect costs to specific departments, services, or patients using a defined allocation basis.
Cost Disease
A phenomenon in which the cost of services in labour-intensive, low-productivity-growth sectors, such as healthcare, rises persistently relative to more automated sectors.
Cost Minimisation
An approach to selecting among interventions already shown to produce equivalent outcomes, in which the choice reduces to the lowest-cost option.
Cost per QALY
A measure of value for money in cost-utility analysis, calculated as incremental cost divided by the quality-adjusted life years gained relative to a comparator.
Cost per QALY Threshold
The maximum cost per quality-adjusted life year a health system is willing to pay for a health gain, used as the decision criterion in cost-utility analysis.
Cost Valuation
The process of assigning a monetary value to identified units of resource use, such as bed-days multiplied by unit cost.