Cost-Utility Analysis
Cost-Utility Analysis (CUA) is a specialized form of cost-effectiveness analysis that incorporates individual preferences or utilities into the assessment of outcomes. It provides a comprehensive measure of value based on how people perceive the benefits of an intervention.
Use when needing to account for individual preferences and values in the evaluation of health or social programs, especially when quality of life is a key outcome.
Solves: Difficulty in capturing the subjective value of program outcomes; needing a way to incorporate individual preferences into the analysis.
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Step 1: Define the objective and identify alternative interventions (120 min)
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Step 2: Measure the costs of each intervention (120 min)
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Step 3: Elicit individual preferences or utilities for the outcomes of each intervention (240 min)
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Step 4: Calculate the cost-utility ratio for each intervention (60 min)
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Step 5: Compare the cost-utility ratios and identify the most efficient option (30 min)
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Step 6: Conduct sensitivity analysis to assess the impact of uncertainty (30 min)
- Use appropriate utility elicitation methods.
- Ensure the utility measures are reliable and valid.
- Conduct sensitivity analysis to assess the robustness of the results.
- Quality-Adjusted Life Years (QALYs)
- Disability-Adjusted Life Years (DALYs)