QALY - Measure of Cost-Benefit Analysis of Health Interventions

Višnjić, Aleksandar; Veličković, Vladica; Milosavljević, Nataša Šelmić
December 2011
Acta Facultatis Medicae Naissensis;Dec2011, Vol. 28 Issue 4, p195
Academic Journal
For the purpose of economic evaluation in the health economics, several analytical techniques that are designed for comparing two or more health interventions in terms of costs and effects are used. Cost-benefit analysis provides the opportunity of comparing values of alternative health interventions that have very different health benefits, which significantly facilitates comparisons. The purpose is to assess the relationship between the cost and utility of health interventions in terms of the patient's number of years in full health. The most commonly used measure in these analyses is QALY (Quality-adjusted life-year). QALY is a measure of the impact of health interventions and treatment that combines two dimensions of health outcomes: the degree of health improvement and the time period for which the improvement of health is exhibited, including the length of life. Determining the QALY is one of the most effective ways of decision-making about distribution of resources in the health care system. The method is designed to distribute resources in such a way as to be spent where they will bring the maximum possible benefit for the patient. If we have to make decisions how to direct funds from limited budgets, then each and the lowest cost has to correlate to the maximum possible benefit and these methods are the best tool under such conditions.


Related Articles

  • Avoiding breaks with bisphosphonates is cost effective.  // PharmacoEconomics & Outcomes News;12/12/2009, Issue 593, p5 

    The article focuses on a study which estimated the costs and outcomes associated with oral biphosphonates. The study calculated the costs and outcomes associated three scenarios for oral bisphosphonates, including no treatment, real-world adherence and full adherence. It found that real-world...

  • Economic evaluation of interventions in health care. McFarland, Agi // Nursing Standard;11/5/2014, Vol. 29 Issue 10, p49 

    Economic evaluation is rapidly becoming an invaluable tool for healthcare decision making, especially in light of current pressures on health services to reduce costs and increase expenditure on health care. This article provides an overview of the main methods used for the economic evaluation...

  • Is the QALY blind, deaf and dumb to equity? NICE's considerations over equity. Soares, M. O. // British Medical Bulletin;Mar2012, Vol. 101 Issue 1, p17 

    Introduction/background The quality-adjusted life year (QALY) is the preferred measure of health outcome used to inform decisions over the use of health care interventions in the UK NHS. This measure considers the overall impact of alternative interventions on both the quantity and quality of...

  • Is The United States Ready For QALYs? Neumann, Peter J.; Greenberg, Dan // Health Affairs;Sep/Oct2009, Vol. 28 Issue 5, p1366 

    Quality-adjusted life-years (QALYs) are used in cost-effectiveness analyses to aid coverage and reimbursement decisions worldwide. QALYs provide a flexible and convenient metric for measuring and comparing health outcomes across diverse diseases and treatments. But their use has stirred...

  • The Cost-effectiveness, Health Benefits, and Financial Costs of New Antiviral Treatments for Hepatitis C Virus. Rein, David B.; Wittenborn, John S.; Smith, Bryce D.; Liffmann, Danielle K.; Ward, John W. // Clinical Infectious Diseases;7/15/2015, Vol. 61 Issue 2, p157 

    Background: New hepatitis C virus (HCV) treatments deliver higher cure rates with fewer contraindications, increasing demand for treatment and healthcare costs. The cost-effectiveness of new treatments is unknown. Methods: We conducted a microsimulation of guideline testing followed by...

  • Determining risk preferences for pain. Kroll, Eike B.; Trarbach, Judith N.; Vogt, Bodo // NeuroPsychoEconomics Conference Proceedings;2011, p25 

    The QALY concept is the commonly used approach in research to evaluate the efficiency of therapies in cost utility analysis. We investigate the risk neutrality assumption for time of the QALY concept: can time be included as a linear factor? Various studies show that this assumption does not...

  • Cost-effectiveness of different interferon beta products for relapsing-remitting and secondary progressive multiple sclerosis: Decision analysis based on long-term clinical data and switchable treatments. Nikfar, Shekoufeh; Kebriaeezadeh, Abbas; Dinarvand, Rassoul; Abdollahi, Mohammad; Sahraian, Mohammad-Ali; Henry, David; Akbari Sari, Ali // DARU;2013, Vol. 21 Issue 6, p50 

    Background: Multiple sclerosis (MS) is a highly debilitating immune mediated disorder and the second most common cause of neurological disability in young and middle-aged adults. Iran is amongst high MS prevalence countries (50/100,000). Economic burden of MS is a topic of important deliberation...

  • Impact of country-specific EQ-5D-3L tariffs on the economic value of systemic therapies used in the treatment of metastatic pancreatic cancer. Lien, K.; Tam, V. C.; Ko, Y. J.; Mittmann, N.; Cheung, M. C.; Chan, K. K. W. // Current Oncology;Dec2015, Vol. 22 Issue 6, pe443 

    Background Previous Canadian cost-effectiveness analyses in cancer based on the EQ-5D-3L (EuroQoL, Rotterdam, Netherlands) have commonly used U.K. or U.S. tariffs because the Canadian equivalent only just recently became available. The implications of using non-Canadian tariffs to inform...

  • Validation of the Underlying Assumptions of the Quality-Adjusted Life-Years Outcome: Results from the ECHOUTCOME European Project. Beresniak, Ariel; Medina-Lara, Antonieta; Auray, Jean; Wever, Alain; Praet, Jean-Claude; Tarricone, Rosanna; Torbica, Aleksandra; Dupont, Danielle; Lamure, Michel; Duru, Gerard // PharmacoEconomics;Jan2015, Vol. 33 Issue 1, p61 

    Background: Quality-adjusted life-years (QALYs) have been used since the 1980s as a standard health outcome measure for conducting cost-utility analyses, which are often inadequately labeled as 'cost-effectiveness analyses'. This synthetic outcome, which combines the quantity of life lived with...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics