A device employed to evaluate the relative financial worth of various interventions, sometimes in healthcare or public well being, compares the prices of an motion in opposition to its ensuing well being advantages, usually expressed as price per life-year gained or price per quality-adjusted life-year (QALY). For instance, evaluating the price of two totally different medicines for treating the identical situation by analyzing their price in relation to the quantity of symptom aid or years of life prolonged they supply facilitates knowledgeable decision-making.
This analytical technique offers a framework for useful resource allocation selections by objectively evaluating the worth obtained from varied investments. Its use helps guarantee restricted assets are directed towards interventions providing the best potential return by way of well being outcomes. Traditionally, the rising price of healthcare and the necessity to prioritize interventions led to the event and refinement of those analysis instruments.