Cost Effectiveness Analysis Page 1   

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Introduction
Cost Effectiveness Analysis (CEA) is a type of economic evaluation that examines both the costs and health outcomes of alternative intervention strategies.
CEA compares the cost of an intervention to its effectiveness as measured in natural health outcomes (e.g., "cases prevented" or "years of life saved").
  • CEA results are presented in a cost-effectiveness ratio, which expresses cost per health outcome (e.g., cost per case prevented and cost per life year gained).
  • CEA is generally used to either:
    • compare alternative programs with a common health outcome, or
    • assess the consequences of expanding an existing program.
CEA was created in the 1970s as a tool for healthcare decision making, primarily to avoid controversy regarding valuation of health-related outcomes in dollars.
CEA was initially applied in the clinical arena but has recently been used to evaluate health policies, programs, and interventions.
Why Is CEA Important?
Advantages of CEA over CBA and CUA
A CEA Example
When Can We Use CEA?
Test Your Understanding
 Framing CEAJump to page 2.
 Which Outcomes are Relevant in CEA?Jump to page 3.
 Interpreting CEA ResultsJump to page 4.
 Glossary — CEAJump to page Glossary.
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