This document discusses economic evaluations, which compare the costs and consequences of different health programs and policies. It defines economic evaluations and explains their importance in decision-making and priority-setting given scarce resources. The document outlines four main methods of economic evaluation: benefit-cost analysis, cost-effectiveness analysis, cost-utility analysis, and cost-minimizing analysis. It provides details on each method, such as how they differ in terms of measuring costs and outcomes. Economic evaluations are important tools to help maximize health benefits from limited health budgets.

1. Health economics
presentation
Topic :economic evaluations

2. Learning objectives
 At the end of this topic student should have to be able to
 define economic evaluations
 Importance of the economic evaluations
 Mention different methods of the economic evaluations

3. Introduction
What is economic evaluation?
 A way to identify, measure, evaluate, and compare
the costs and results of programs and policies.
 Economic evaluation is the comparative analysis or
evaluation of the two or more interventions in terms
of their cost and consequence .

4.  It is the evaluation or assessment of different
programs based on their input given and results or
outcomes generated .
 A powerful tool that can help users make the most
of resources, decide between promising program
options, and demonstrate the benefits of your
program

5. Introduction
 Resources are scarce, and consequently it is necessary to
have an economic evaluation of various health care
interventions. To allocate resources in an efficient way,
prioritization is needed.
 different methods have been developed for economic
evaluation purposes to help guide decisions and affect
policy making.

6. Importance of economic evaluation
 Economic evaluation enhances decision-making and helps set
health policy.
practitioners and evaluators need to be adept at conducting
these analyses, because demand for them is growing.
 Economic evaluation help to prioritize the programs and make
the best decision for optimal resource allocations.
 Economic evaluations are important tools for assessing
economic feasibility and efficiency of health interventions .

7. Methods of the economic evaluations
There are four main methods:
 Benefit-cost analysis (BCA)
 Cost-effectiveness analysis (CEA)
 Cost-utility analysis (CUA)
 Cost minimizing analysis (CMA)
Each of this analysis involves systematic identification and
measurement of the costs and consequences of the interventions

8. 1. Benefit-cost analysis (BCA)
 CBA is a process for evaluating the merits of a particular
project in a systematic way in the terms of cost and
benefits of the project .
 Or is a widely used tool for making economic decisions
about how to control pollution and manage resources .

9.  Comparing the estimated short and long term costs ( loses)
with the estimated benefits (gains)of the proposal .

10.  CBA is used to answer the question whether the given goal
is worth pursuing.
 The cost side is determined in the same way as in the
application of the other analytical methods. The benefit
side, however, is now determined in monetary units, which
has the advantage that it is possible to compare projects
across sectors.

11.  The measurement of benefits in the same unit as costs is
necessary to assure possible improvements in allocative
efficiency.

12.  CBA indicates whether a new intervention should be
introduced by determining the net b benefits of the specific
programmed, i.e., positive net
 benefits imply that social welfare would increase, and the
programme should be introduced.

13. 2.Cost-effectiveness analysis (CEA)
 In this method of analysis ,cost is measured against the
effectiveness of the intervention .
 Or is a form of economic analysis that compares the
relative costs and outcomes of different courses .

14.  Typically CEA is expressed in terms of a ratio where the
denominator is gain in health from measure and the
numerator is the cost associated with the health gain .
 The most commonly measure is the quality adjusted life
years ( QALY).

15.  CEA is used when the analyst tries to answer the question
concerning how to reach a specific goal with a minimum of
resource use or how to achieve as much as possible for a
given budget. However, it is not determined if it is worth
the cost trying to reach this goal.

16.  A CEA measures the effect of an intervention in natural
units and tries to find the alternative that has the lowest
cost per unit measured. It is distinguished from a CMA, by
not only including the cost side, but also by considering the
amount of output produced. Hence, a CEA is concerned d
with productive efficiency.

17. 3.Cost-utility analysis (CUA)
 Cost utility analysis is a form of the financial analysis used
to guide procurement decisions .
 The most common and well known application of this
analysis is in the pharm economics ,especially health
technology assessments .

18.  In health economics the purpose of CUA is to estimate the
ratio between the cost of the health related intervention
and the benefit it produces in terms of the number of years
lived in full health by beneficiaries .hence it can be
considered a special case of cost effectiveness analysis.

19. 4. Cost minimizing analysis (CMA)
In this method of analysis , costs of the two or more
interventions achieving identical outcome is measured .
The intervention incurring the lowest cost is then chosen.

20.  CMA is used when two interventions that are being
compared have the same outcome.
 In this situation it is only necessary to determine the costs
of each of the two interventions, and compare them. The
intervention which incurs the lowest cost is then the one
which would be most rational to implement if the goal is to
minimize cost. The cost categories determined depend on
the chosen perspective

21. End