This is a discussion of the uses and conduct of the cost-effectiveness analyses (CEA) as decision-making aids in the health and medical fields. It presents the most explicit recommendations to date in the field of CEA in order to improve the policy relevance of these studies.

A unique, in-depth discussion of the uses and conduct of cost-effectiveness analyses (CEAs) as decision-making aids in the health and medical fields, this book is the product of over two years of comprehensive research and deliberation by a multi-disciplinary panel of economists, ethicists, psychometricians, and clinicians appointed by the U.S. Public Health Service. Exploring cost-effectiveness in the context of societal decision making for resource allocation purposes, the authors propose that analysts include a "reference-case" analysis in all CEAs designed to inform resource allocation, and they put forth the most explicit set of guidelines (together with their rationale) ever defined on the conduct of CEAs. Important theoretical and practical issues encountered in measuring costs and effectiveness, evaluating outcomes, discounting, and dealing with uncertainty are examined in separate chapters. Additional chapters on framing and reporting of CEAs elucidate the purpose of the analysis and the effective communication of its findings.