Table 1.

Key methodologies in health economic evaluation.

Methodology	Key Aspects
Cost-Effectiveness Analysis (CEA)	•Compares costs with incremental clinical benefits expressed in “natural units”, often life-years •ICER usually expressed in $/LY
Cost-Utility Analysis (CUA)	•Benefits are valued in terms of life expectancy and quality of life •ICER expressed in $/QALY
Cost-Benefit Analysis (CBA)	•Costs and benefits both measured in monetary units •Allows direct cost comparisons but lacks transparency in the relationship of clinical outcomes as these are converted to costs
Cost-Minimization Analysis (CMA)	•Assumes equal benefit of both interventions and compares costs only •Aim is to choose the least expensive option