The denominator of the cost-effectiveness ratio reflects the health effect of the intervention. The year of life saved is probably the most commonly used measure of the health effect. Years of life saved may be adjusted for the quality of life of those years, reflecting the effects of medical interventions on morbidity as well as the length of life. Analyses that incorporate quality of life adjustment are sometimes categorized as cost-utility analyses. The measurement, estimation, and valuation of the elements contained in a cost-effectiveness analysis is a complex undertaking.
Chapter ii provides detail on the issues related to assessing the effect of interventions.
The assessment of cost can be equally difficult. The measurement of quality of life is also complex and has developed into a specialized field of study. This site produced by the Journal of the American Medical Association with support from Ortho-McNeil Pharmaceutical and Advanced Care Products. All rights reserved.