A Guide to the Fundamentals of Economic Evaluation in Public Health

Approaches to economic evaluation in public health include cost analysis, cost-effectiveness analysis, and cost-benefit analysis. These methods are used to inform decision making in public health by providing a framework for evaluating the efficiency and effectiveness of health programs. Cost analysis is a fundamental component of economic evaluation in public health. It involves identifying and quantifying the costs associated with a health program or intervention. Study design and scope are critical considerations in cost analysis, as they determine the level of detail and the types of costs to be included. Data collection methods, such as surveys and interviews, are used to gather information on costs, and cost data are analyzed and presented in a clear and concise manner. Disability-adjusted life years (DALYs) and quality-adjusted life years (QALYs) are two key metrics used to measure the impact of health interventions on lives. DALYs take into account the years of life lost due to premature death and the years lived with disability, while QALYs measure the quality of life in terms of health-related quality of life. Value of a statistical life and value of a year of healthy life are also important concepts in economic evaluation, as they provide a framework for valuing the benefits of health interventions. Impact evaluations are used to assess the effectiveness of health interventions in achieving their intended outcomes. Types of evaluations include process evaluations, outcome evaluations, and impact evaluations. Impact evaluations are used to determine whether a health intervention has a significant impact on health outcomes, and they are often used to inform policy decisions. Cost-effectiveness analysis is a method used to compare the costs and benefits of different health interventions. Summary measures, such as incremental cost-effectiveness ratios, are used to present the results of cost-effectiveness analysis. Decision rules, such as willingness to pay, are used to determine whether a health intervention is cost-effective. Cost-benefit analysis is a method used to compare the costs and benefits of health interventions in monetary terms. Measuring costs and benefits, discounting, and uncertainty are critical considerations in cost-benefit analysis. Conducting cost-benefit analysis requires careful consideration of the costs and benefits of a health intervention, as well as the potential risks and uncertainties associated with it. The United States Agency for International Development provided financial support for the development of this guide, which is intended to provide a comprehensive overview of the fundamentals of economic evaluation in public health. The guide is designed to be a useful resource for public health professionals, policymakers, and researchers who are interested in economic evaluation and its application in public health.