Cost-effectiveness analysis

Your model will estimate costs and benefits, but these need to be combined to help decision makers. In this video we cover the most common approach for combining costs and benefits, cost-effectiveness analysis. You will learn about the incremental cost-effectiveness ratio (ICER) and the incremental net monetary benefit (INMB).

[@monikasahay8986]

Crisp. To the point explanation. Thank you.

[@TMSnowsill]

Thanks for watching!

[@rukaarufinu1248]

Thank you so much sir, much respect

[@TMSnowsill]

Thank you for watching :)

[@andrewrizal2242]

Related with the INMB, I've tried to calculate both option C and D in comparison with option A. Both of them (NMB C- NMB A) and (NMB D-NMBA) resulting the same amount, $25.000 with the 100.000 threshold. Which one should I choose between those two if we're using the NMB approach?

[@TMSnowsill]

If the net monetary benefits of C and D are identical and both greater than the net monetary benefit of A, then C and D are both optimal from the perspective of maximising QALYs with a fixed budget. It could be worthwhile exploring which has greater NMB if the willingness-to-pay is lower or higher than $100,000/QALY. There may be other differences that are important, such as equity impacts (maybe C increases health inequalities while D reduces them).

[@kinduyemiamrew7234]

Nice presentation

[@TMSnowsill]

Glad you liked it

[@kinbela]

Can you check that example of "dominance?" I think we would not want to choose the dominant variable because it would be more costly and less effective. That's what I've been reading

[@TMSnowsill]

We would want to choose the option which is less costly and more effective. That is described as the "dominant" option. The option which is more costly and less effective is called the "dominated" option.