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Cost-Effectiveness Analysis

Cost-Effectiveness Analysis (CEA) compares the relative costs of achieving a specific outcome across two or more interventions. It helps identify the most efficient way to reach a desired goal.

480-1440 min1-5 peopleHard
When to Use

Use when needing to compare different approaches to achieving the same objective, especially when monetary valuation of all benefits is difficult.

How It Works

Solves: Difficulty in choosing between multiple interventions with similar goals; needing a clear comparison of their efficiency.

Step-by-Step Instructions
Follow these steps to facilitate this method
  1. 1

    Step 1: Define the objective and identify alternative interventions (120 min)

  2. 2

    Step 2: Measure the costs and outcomes of each intervention (240 min)

  3. 3

    Step 3: Calculate the cost-effectiveness ratio for each intervention (60 min)

  4. 4

    Step 4: Compare the cost-effectiveness ratios and identify the most efficient option (30 min)

  5. 5

    Step 5: Conduct sensitivity analysis to assess the impact of uncertainty (30 min)

Facilitator Tips
  • Ensure the outcomes are measured consistently across interventions.
  • Use appropriate measures of effectiveness.
  • Conduct sensitivity analysis to assess the robustness of the results.
Variations
  • Cost-Utility Analysis (CUA)
  • Incremental Cost-Effectiveness Ratio (ICER)
Source: BetterEvaluation Rainbow FrameworkLearn more