Cost-Utility Analysis

Cost-Utility Analysis (CUA) is one form of evaluation where both that focuses particular attention on the quality of the health outcome produced or forgone by health programmes or treatments. In CUA, the incremental cost of a programme from a particular viewpoint is compared to the incremental health improvement attributable to the programme, where health improvement is measured in quality-adjusted life-years (QALYs) gained, or possibly some variant, like disability adjusted life-years (DALYs) gained. The results are expressed per QALY gained.

Source: Drummond MF, Methods for the Economic Evaluation of Health Care Programmes, Ch-6, 3rd Edition, 2005, Oxford University Press.