Cost-Effectiveness Analysis in Health Program Evaluation

The growing demand for prospective evaluation enhances the popularity of cost-effective ness analysis, a technique for identifying best uses of scarce resources. Defined in diverse ways during its short history, cost-effectiveness analysis is now seen as the evaluative comparison of monetary and nonmonetary dimensions of impact. The cost-effectiveness ratio for health programs divides monetary effects by health effects. Decisions on com peting alternative programs should be resolved by regarding cost-effectiveness ratios on the differences between programs.