Cost-Effectiveness Analysis

Cost-Effective Analysis (CEA) is one form of full economic evaluation where both the costs and consequences of health programmes or treatments are examined. In CEA, the incremental cost of a programme from a particular viewpoint is compared to the incremental health effects of the programme, where the health effects are measured in natural units related to the objective of the programme. The results are usually expressed as a cost per unit of effect.

Source: Drummond MF, Methods for the Economic Evaluation of Health Care Programmes, Ch-5, 6, 3rd Edition, 2005, Oxford University Press.