Cost-Influenced Treatment Decisions and Cost-Effectiveness Analysis

This article presents the theoretical framework of cost-effectiveness analysis with special focus on the incremental cost-effectiveness ratio. Important practical considerations are then discussed with the aim of making the reader aware of some of the many challenges raised by cost-effectiveness analysis. Despite these challenges, it is argued that cost-effectiveness analysis can provide valuable guidance on how health can be improved for the available resources. In addition, the recent extension of cost-effectiveness analysis to financial protection and distributional considerations can provide valuable evidence to policymakers in their paths toward universal health coverage.