Difficult Choices - An Introduction to Cost Effectiveness Analysis

The media frequently report on the high cost of various health-related treatments. As there is a limit to the resources available to public and private health plans, they are not able to make all new treatments available. This raises questions about how to determine which treatments should be offered under a health plan. Cost effectiveness analysis has emerged as a powerful tool to help determine priorities and guide these policy decisions. This note is intended as a background reading for a first class on pharmacoeconomics or cost effectiveness analysis.