Cost-effectiveness analysis (CEA) is a collection
of methods used by health economists and policy
researchers to evaluate policy recommendations on
the basis of two different attribute scales, cost and
quality-adjusted life expectancy, for example.
The TreeAge Pro Healthcare module is designed
to facilitate building and analyzing cost-effectiveness
decision trees and Markov models — both
so-called early models which rely heavily on rough
guesses about outcomes and parameters, as well as
evidence-based models that summarize extensive
research and meta-analysis.
The basis of CEA in a decision tree is the calculation
of expected values for each strategy at a decision
node. TreeAge Pro then creates a
CEA table, in which the strategies are listed in
order of increasing cost, and calculates incremental
cost and effectiveness values for neighboring pairs
of options. This is used to determine conditions of
dominance and to calculate incremental cost-effectiveness
ratios (ICERs), as described in this chapter.
For more background, users are strongly
encouraged to consult some of the many references
on medical decision making, for instance:
- Periodicals including Medical Decision
Making (Sage Science Press) and Value in
Health (Blackwell Publishing).
- Decision Making in Health and Medicine,
Hunink, and Glasziou (2001), Cambridge
University.
- Cost-effectiveness in Health and Medicine,
Gold, Siegel, Russell, and Weinstein, eds.
(1996), New York: Oxford Univ. Press.
- Methods for the Economic Evaluation
of Health Care Programmes, 3rd Ed.,
Drummond, et al (2005), New York:
Oxford Univ. Press.
- Designing and Conducting Cost-
Effectiveness Analyses in Medicine and
Health Care, Muennig. (1996), New York:
Oxford Univ. Press.
- Meta-Analysis, Decision Analysis, and
Cost-Effectiveness Analysis, Petitti, (1994),
New York: Oxford Univ. Press.
- Medical Decision Making, Sox, et al.
(1988), Boston: Butterworth-Heinemann.
Elsewhere in This Section
> Decision Analysis and Decision Trees
> Markov Models - State Transition Models
> Discrete Event Simulation Models
> Monte Carlo Simulation
Learn
how TreeAge Pro users are using decision analysis. >
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