Question

Explain the concept of economic evaluation in healthcare. Discuss the importance of
cost-effectiveness and cost–benefit analysis in healthcare decision-making.

03 Aug 2026
Answer :
Word Count : 557
Economic evaluation in healthcare refers to the systematic process of comparing the costs and outcomes of different healthcare interventions, programmes, or policies to determine their efficiency and value. It is an important component of health economics because healthcare resources are limited, while the demand for healthcare services continues to increase. Economic evaluation helps policymakers, healthcare providers, and organizations make rational decisions about the allocation of scarce resources to achieve maximum health benefits. The basic concept of economic evaluation involves identifying, measuring, valuing, and comparing both the costs and consequences of alternative healthcare options. Costs may include direct medical expenses such as hospital services, medicines, diagnostic tests, and healthcare staff, as well as indirect costs such as productivity losses due to illness. The outcomes may be measured in terms of health improvements, lives saved, quality of life gained, or other relevant health indicators. By comparing costs and outcomes, economic evaluation provides evidence for selecting interventions that offer the greatest benefits relative to their expenses. There are different types of economic evaluation methods used in healthcare, including cost-effectiveness analysis, cost-benefit analysis, cost-utility analysis, and cost-minimization analysis. Among these, cost-effectiveness analysis and cost-benefit analysis are widely used for healthcare decision-making. Cost-effectiveness analysis (CEA) compares the costs of healthcare interventions with their outcomes measured in natural health units, such as years of life saved, cases prevented, or
________ ____ __________ ____ ________ ________ _______ _____.
_______ __________ ________ _________ ________ ________ _______ ____ ______ _________.
____ __________ ____ __________ ________.
_________ __________ _________ ____ _______ _______ ________ _________ ______ _____ ______ ______.
__________ ___ _______ ___ _______ ________ _____ ____ ________ _________.
_____ ________ _____ __________ _______ ___ __________ ____ ___ __________.
___ ________ _____ _____ ______ _________ ____ _________ ___.
_____ ____ _________ _________ ____ ____ _______.
________ ____ _________ ___ __________ _______ __________ ________ _______ _________ ______ _____.
________ ________ _________ _______ ______ ________.
_________ ______ _______ _____ _______ ________ ________ _____ __________.
__________ ____ ___ ____ _____ ____ _________.
________ _______ ________ _____ _______ ________ __________ ___ ________ ____.
__________ _______ ___ _________ _____ ____ _____ _____ _________ ____ __________.
________ ___ ______ _________ __________ ______ _________ _____ ________.
__________ _____ ____ ____ ___ __________ ___ _____ _____ ___ ____ __________.
_____ ___ ______ ________ ___ ___ ___.
_____ __________ __________ ________ _____ ________ _______.
_____ _______ __________ ___ ________ _____ __________ _______ __________ _______.
________ ________ __________ _________ _____.
_______ ______ __________ ___ __________ ________ ____ ______.
_____ ______ _______ _______ ________ _______ ___ _____.
________ ____ __________ _______ ______ ____ _________ _____ _______ __________.
___ __________ ______ ________ _________ ___ _____ _________ _____ _______ ____ __________.
_________ _______ _______ ___ ____.
______ __________ _____ ______ ____ _______ ________ ________ ____.
__________ __________ _______ __________ __________ _________ _____ _________ ___ _________ ___.
_____ _____ ______ ________ _______ ____ ________ ____ _______ ______ _____ ____.
_______ ____ ___ _______ ______ ___ _____ ___ _________ ______.
_____ _________ ______ _______ _________ _________.
________ ________ ___ ___ __________ ______ _______ ___.
___ _________ _______ ___ ________ ___ _______ _____ ____.
_________ _____ _____ _______ ____ ______ ________ _______ ______ _____.
______ __________ __________ ______ __________ _____ _________.
________ ___ _________ __________ _____ _______.
__________ _________ _____ ______ _________ ________ ______ __________ ____ _____ __________.
__________ _________ ___ ___ _________ _______.
_____ __________ _______ ___ _______ _________ ______ _____ ____ __________.
IGNOU ACADEMY
Your IGNOU journey, made easier.
  • Solved Assignments
  • Study Notes
  • Guess Papers
  • Question Papers
Skip in 10
Top
📞
Call Support Instant phone assistance IGNOU MHH 15 2026 - Explain the concept of economic evaluation in healthcare. Discuss the | IGNOU Academy
→
🟢
WhatsApp Chat Fast live messaging
→
Email Us Business enquiries & support
→