Topic

Cost-utility analysis

Cost-utility analysis is a form of cost-effectiveness analysis that measures health gain in quality-adjusted life years, so that treatments for very different conditions can be compared on one scale. Results are usually reported as a cost per QALY gained.

Concepts in this topic

• Absolute ShortfallAbsolute shortfall is the future QALYs lost with a condition under current care versus the age- and sex-matched population, used by NICE to judge severity.
• Cost per QALYCost per QALY gained is the extra cost of a treatment compared with an alternative, divided by the quality-adjusted life years (QALYs) it adds.
• Cost-Utility AnalysisCost-utility analysis is an economic evaluation that measures health gains in quality-adjusted life years (QALYs) and reports cost per QALY gained.
• Incremental Cost-Utility RatioThe incremental cost-utility ratio (ICUR) is the ICER of a cost-utility analysis: extra cost over a comparator divided by extra QALYs gained.
• Proportional ShortfallA measure of disease severity calculated as the proportion, rather than absolute number, of expected quality-adjusted life years lost to a condition.