P2L6

Question 1

What is the cost effectiveness ratio?

Answer 1

CER = cost of intervention / effect of intervention

Question 2

What is incremental cost effectiveness ratio?

Answer 2

ICER = difference in cost/difference in effect

Question 3

Explain dominant and dominated in terms of cost effectiveness

Answer 3

If effectiveness of alternative ‘A’ is higher and its costs is lower than those of alternative ‘B’.
Alternative ‘A’ is called dominant
Alternative ‘B’ is called dominated