Terms used to compare the costs and health effects of alternative interventions and judge value for money.
Incremental cost is the difference in expected total cost between one healthcare option and its stated comparator, calculated using the same population, perspective, time horizon, currency, price year and costing methods.
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.
Incremental effectiveness is the difference in health outcomes between an intervention and its comparator, calculated in a consistent outcome unit and comparison direction.
Incremental net monetary benefit, or INMB, converts the difference in health outcomes between two alternatives into a monetary value at a stated cost-effectiveness threshold and then subtracts their difference in cost.