Economic foundations of cost-effectiveness analysis

Health values of patients with systemic sclerosis

“…The philosophical underpinning of economic evaluation in health care is utilitarianism, or variations thereof (5). Utility, under classical utilitarianism, is considered a measure of "good stuff" (6).…”

Cost-Effectiveness of Early Versus Delayed Functional Restoration for Chronic Disabling Occupational Musculoskeletal Disorders

“…The major goal of health economics is to provide a foundation for decisionmaking in the allocation of resources in the healthcare system (Garber, Weinstein, Torrance, & Kamlet, 1996). There are several tools that have been developed for use in economic analyses in general, and these are also applicable for analyses within healthcare settings.…”

“…Therefore, any course of action needs to be evaluated based on its actual or potential consequences. Within the context of welfare economics, the general goal is to assess the desirability of alternative allocation of resources for different courses of action (Garber, Weinstein, Torrance, & Kamlet, 1996). Each given alternative course of action may incur different costs and provide for varying returns (or benefits) to society at large.…”

“…In order to extend individual desirability to a larger construct of societal benefit, two assumptions need to be met (Garber, Weinstein, Torrance, & Kamlet, 1996). The first assumption states that individuals seek to maximize a well-defined preference function that reflects their overall sense of well-being, or expected utility.…”

“…Nevertheless, rating scales are still the most widely used method for generating utility weights (Garber, Weinstein, Torrance, & Kamlet, 1996). In arriving at a consensus on this issue, the International Panel on Cost-Effectiveness in Health and Medicine, convened by the U.S. Public Health Service in 1993, concluded that the "choice of preference measurement method should be based on the decision or problem to be solved, the practical considerations involved in the study, and the use to which data will be put."…”