Table 1.

Glossary of key terms.

Term	Definition
Cost-effectiveness analysis.	A method of economic evaluation that compares the expected incremental cost and health outcomes derived from relevant alternative health technologies [10].
Cost-effectiveness plane.	A plot to illustrate the incremental outcomes derived from an intervention health technology versus a relevant comparator [43].
Cost-effectiveness threshold.	The additional cost that must be imposed on the budget for health care to displace one QALY [30].
Decision-analytic model.	A series of mathematical relationships that represent the progression of a patient’s diagnosis or disease and the impact of a health technology on diagnosis and/or disease progression. Model-based cost-effectiveness analyses can synthesize all available evidence to inform resource allocation decision-making [51].
Decision uncertainty.	The probability of recommending a health technology that is not cost-effective [35].
Heterogeneity.	The variation in expected costs and consequences that can be explained by patient-level characteristics [37].
Methodological uncertainty.	The uncertainty with respect to the appropriate methods of performing an economic evaluation [83].
Microcosting	Estimation of the specific resources and associated unit costs of a health technology [71].
Opportunity cost.	The (health) benefits forgone due to a change in the allocation of health care resources [30].
Parameter uncertainty.	The uncertainty in the true value of each input within a decision-analytic model [87].
Structural uncertainty.	The uncertainty with respect to the structure (care pathways, model type) of an economic evaluation [86].
Quality-adjusted life years.	A generic measure of outcome that has reference points of one (for full health) and zero (for death) [33].
Reference case.	Pre-defined preferred criteria for performing an economic evaluation [84].
Value of information.	A set of methods to quantify the value of further research to reduce decision uncertainty [89].