Is healthcare spending a cost or an investment? Could the healthcare sector’s money be better spent on something else? These are some of the central questions facing healthcare professionals when they prioritise healthcare funding. What is economic evaluation? Economic evaluation enables healthcare professionals to assess the data and information needed to make prioritised judgement in the healthcare sector. Based on traditional welfare economics, health economic evaluation is essentially a cost-benefit analysis – a comparison of prices on healthcare investments – for example, treatments, medication, technical devices or facilities – followed by an assessment of how the cost compares to the expected effect of a particular expenditure. Since money can only be spent once, it’s crucial that the right choices are made. Health economic evaluations can help healthcare professionals make informed choices.
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