Cost-effectiveness analysis compares the costs and health effects of an intervention to assess the extent to which it can be regarded as providing value for money.
This is crucial information to decision-makers who have to determine where to allocate limited healthcare budget.
Cost-effectiveness modelling is one of the existing methods of pharmaceutical evaluations. Other methods also performed are cost-minimization, cost-consequence and cost-utility analyses.
The modelling techniques include decision trees and Markov models.