Gerald Kominski, PhD
Professor, Fielding School of Public Health
Director, UCLA Center for Health Policy Research

Cost-effectiveness analysis (CEA) is a commonly used technique for assessing whether the additional costs associated with a wide variety of interventions, including health care technologies, are reasonable to achieve improvement in outcomes. Because market mechanisms often don’t work properly in health care settings to separate cost-effective from cost-ineffective technologies, CEA is now widely used to improve the allocation of increasingly scarce resources. This module provides an introduction to CEA, including why health care markets rely on CEA rather than market competition, and how CEA differs from other methods of economic evaluation (such as cost-benefit analysis). Participants will also learn about the structure of generic CEA models that are frequently used in medical settings, and a general framework for conducting CEA, including how to identify appropriate costs for inclusion in such analyses.

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