Two-alternative incremental cost and effect

Signature

Delta C = C_new - C_comparator; Delta E = E_new - E_comparator

Inputs
Inputs	Definition	Unit
`C_new`	Total relevant cost of the new intervention	currency per defined population or person
`C_comparator`	Total relevant cost of the comparator	the same currency and population basis as C_new
`Delta`	Delta E — Difference in outcome between the new intervention and comparator. Unit: the selected outcome measure	—

E_new Expected outcome for the new intervention (the selected outcome measure)
E_comparator Expected outcome for the comparator (the same outcome measure as E_new)

Maps the costs and effects of two healthcare alternatives to their incremental cost and incremental effect.

C_newC_comparatorDelta

Relevant comparator
The comparator represents the healthcare choice actually available to the decision-maker.
Consistent analytical basis
Costs and effects for both alternatives use the same perspective, population, time horizon, price basis and discounting approach.
Comparable outcome measure
Effects for both alternatives are expressed using the same outcome definition and unit.

Current care compared with a new intervention
Current care costs £10,000 and produces 4.50 QALYs. The new intervention costs £14,000 and produces 4.80 QALYs. Incremental cost is £4,000 and incremental effect is 0.30 QALYs.
```
Delta C = 14000 - 10000 = 4000; Delta E = 4.80 - 4.50 = 0.30
```

Using average instead of incremental results
Comparing separate average costs or outcomes does not show the change produced by choosing one alternative instead of another.

NICE health technology evaluations manual
NICE. Health technology evaluations: the manual. Section 4.6 Economic evaluation.
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