The incremental cost-effectiveness ratio (ICER) is a measure used in cost-effectiveness analyses to compare the relative cost-effectiveness of different medical interventions or treatments. The ICER expresses the additional cost per unit of health benefit gained from one intervention compared to another.
To calculate the ICER, the difference in costs between two interventions is divided by the difference in health benefits, measured in a unit such as quality-adjusted life years (QALYs). The result is the additional cost per QALY gained by the intervention being evaluated compared to the reference intervention.
An ICER can be used to determine the value of an intervention in different ways. For example, a treatment with an ICER of $50,000 per QALY would be considered more cost-effective than a treatment with an ICER of $100,000 per QALY.
ICERs are often used in cost-effectiveness analyses to inform healthcare decision-making. For example, if the ICER for a new drug is less than the willingness-to-pay threshold for a society or healthcare system, it would be considered cost-effective and could be recommended for use.
It should be noted that ICERs are not without criticisms, which include concerns about valuing different lives differently and ethical issues that arise from the use of ICERs in resource allocation. Additionally, ICERs are sensitive to the choice of reference intervention, and the results may change depending on the reference intervention used.
In conclusion, the incremental cost-effectiveness ratio (ICER) is a measure used in cost-effectiveness analyses to compare the relative cost-effectiveness of different medical interventions or treatments. It expresses the additional cost per unit of health benefit gained from one intervention compared to another. ICERs are widely used in healthcare decision-making, however, it is important to consider their potential limitations and ethical issues when interpreting and using their results.
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