Economic evaluation

Drummond MF, Aguiar-Ibáñez R, Nixon J
Correspondence: Prof Michael F Drummond, md18@york.ac.uk

ABSTRACT
Given the need to assess the value for money of healthcare treatments, economic evaluation has been gaining popularity over the past ten years. Studies comparing the costs and consequences of alternative healthcare interventions have been published in all fields of healthcare. This article describes the basic forms of economic evaluation and outlines the key methodological features to be considered in the critical appraisal of studies. Issues such as the appropriateness of the study question, the selection of alternatives to be compared, the measurement of costs and consequences, and the assessment of uncertainty are discussed. Additionally, an analytical critique of economic evaluations undertaken in Singapore is provided, and the prospects for economic evaluation in the future are discussed.

Keywords: cost-effectiveness analysis, economic evaluation, healthcare resources, resource allocation
Singapore Med J 2006; 47(6): 456-462