Question:

What is the difference between a cost-effectiveness analysis, a cost-utility analysis, a cost-benefit analysis, and a cost-minimization analysis?

Answer:

All four types of analyses are just sub-types of decision analysis. A decision analysis is a technique to help make decisions under conditions of uncertainty.

A cost-effectiveness analysis is a type of decision analysis that generates results where cost is in the numerator, and a measure of effectiveness is in the denominator. The most typical measure of effectiveness is "life years."

A cost-utility analysis also has cost in the numerator, but has a special measure of effectiveness called a "quality adjusted life year," or "QALY," in the denominator.

A cost-benefit analysis has cost in both the numerator and denominator. The cost in the denominator is based upon the "willingness to pay" for a cure.

Finally, a cost minimization analysis only generates costs - it does not have a denominator.

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