Incremental Cost-Effectiveness Ratio (ICER) - YHEC

In the UK the QALY is most frequently used as the measure of health effect, enabling ICERs to be compared across disease areas, but in other healthcare ... IncrementalCost-EffectivenessRatio(ICER) Anincrementalcost-effectivenessratioisasummarymeasurerepresentingtheeconomicvalueofanintervention,comparedwithanalternative(comparator).Itisusuallythemainoutputorresultofaneconomicevaluation.AnICERiscalculatedbydividingthedifferenceintotalcosts(incrementalcost)bythedifferenceinthechosenmeasureofhealthoutcomeoreffect(incrementaleffect)toprovidearatioof‘extracostperextraunitofhealtheffect’–forthemoreexpensivetherapyvsthealternative.IntheUKtheQALYismostfrequentlyusedasthemeasureofhealtheffect,enablingICERstobecomparedacrossdiseaseareas,butinotherhealthcaresystemsothermeasuresofhealtheffectmaybeused.Indecision-makingICERsaremostusefulwhenthenewinterventionismorecostlybutgeneratesimprovedhealtheffect.ICERsreportedbyeconomicevaluationsarecomparedwithapre-determinedthreshold(seeCost-effectivenessthreshold)inordertodecidewhetherchoosingthenewinterventionisanefficientuseofresources.   Howtocite:IncrementalCost-EffectivenessRatio(ICER)[online].(2016).York;YorkHealthEconomicsConsortium;2016.https://yhec.co.uk/glossary/incremental-cost-effectiveness-ratio-icer/   Contactustodayifyouwouldliketobekeptupdatedwithourlatesttrainingcourses:   Yourname(required) Youremail(required) Pleaseleavethisfieldempty.