Since the outcomes associated with the two drugs are equivalent, costs alone can be compared. CMA can also be useful when comparing therapeutic agents in the same therapeutic class, assuming that they have demonstrated equivalence in both safety and efficacy. The costs of these agents would be identified, measured and compared. However, the costs should include all relevant costs incurred for preparation, administration, monitoring and the treatment of adverse effects. It is important to understand the difference between a cost-effective alternative and one with cost savings.
Cost savings refer to a competing alternative that is less expensive.
However, a cost-effective alternative is not necessarily one which is less expensive. CEA attempts to reveal the optimal alternative, which may not be the least costly one. It provides the means to identify and promote the most efficient drug therapy. When to use CEA is useful when comparing competing programmes or treatment alternatives that differ in degree of success in terms of the therapeutic or clinical outcome. An example of a CEA is where the outcome of interest is prolonging life after renal failure.