Question

What is cost-effectiveness analysis? Discuss two important examples that highlight how cost-effectiveness analysis can help prioritize global health interventions?

Answer 1

Ans) Cost-effectiveness analysis (CEA) is a form of economic analysis that compares the relative costs and outcomes (effects) of different courses of action. Cost-effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect.

- Health systems have multiple goals, but the fundamental reason they exist is to improve health. It indicates which interventions provide the highest "value for money" and helps them choose the interventions and programmes which maximize health for the available resources.

- Cost-effectiveness analysis helps identify neglected opportunities by highlighting interventions that are relatively inexpensive, yet have the potential to reduce the disease burden substantially. For example, each year more than a million young children die from dehydration when they become ill with diarrhea.