Cost-Effectiveness Analysis
TreeAge Pro provides integrated Cost-Effectiveness Analysis tools for comparing the costs and health outcomes of alternative healthcare strategies.
Calculate and compare cost-effectiveness results directly from your health economic model, then use reports and visualizations to understand and communicate the results.
Compare Strategies and Interpret Cost-Effectiveness Results
Evaluate the costs and health outcomes of alternative strategies, understand the incremental differences among them, and visualize how strategies compare.
Calculate Cost and Effectiveness by Strategy
Calculate the average cost and effectiveness for each strategy directly from your model.
Compare Incremental Costs and Effectiveness
Compare strategies based on differences in cost and effectiveness and identify strategies that are dominated or extendedly dominated.
Calculate Incremental Cost-Effectiveness Ratios (ICERs)
Calculate ICERs for relevant strategy comparisons to understand the additional cost associated with an additional unit of effectiveness.
Evaluate Net Monetary Benefit
Use willingness-to-pay thresholds and net monetary benefit to compare the cost-effectiveness of multiple strategies within a common framework.
Visualize Cost-Effectiveness Results
Plot strategies on the cost-effectiveness plane and use reports to review the cost-effectiveness frontier, incremental results, ICERs, and net monetary benefit.
Explore Uncertainty in Cost-Effectiveness Results
Extend your cost-effectiveness analysis to understand how uncertainty in model inputs and assumptions affects results.
- Deterministic Sensitivity Analysis and Tornado Diagrams — vary individual inputs to identify which parameters have the greatest impact on cost-effectiveness results.
- Probabilistic Sensitivity Analysis — vary multiple uncertain parameters simultaneously to evaluate uncertainty in costs, effectiveness, and cost-effectiveness results.
Analyze Cost-Effectiveness Across Modeling Approaches
Use the same integrated Cost-Effectiveness Analysis tools across TreeAge Pro’s supported health economic modeling approaches.
What is Cost-Effectiveness Analysis and Why Is It Used in Health Economics?
Cost-effectiveness analysis compares alternative healthcare strategies based on both their costs and health outcomes. Effectiveness may be measured using outcomes such as life years (LYs), quality-adjusted life years (QALYs), or other measures appropriate to the analysis.
CEA evaluates the incremental differences in cost and effectiveness between strategies. The Incremental Cost-Effectiveness Ratio (ICER) represents the additional cost per additional unit of effectiveness when comparing relevant strategies.
Strategies that are dominated or extendedly dominated are identified and excluded from relevant incremental comparisons, allowing the remaining strategies to form the cost-effectiveness frontier.
A willingness-to-pay (WTP) threshold can be used to interpret incremental cost-effectiveness results. Net monetary benefit (NMB) provides another way to compare strategies by expressing costs and health outcomes within a common framework at a specified WTP threshold.