We describe a method for estimating the cost-effectiveness of a new treatment compared to a standard, using data from a comparative clinical trial. We quantify the clinical effectiveness as a binary variable indicating success or failure. The underlying statistical model assumes that costs are...

Estimation of the incremental cost-effectiveness ratio (ICER) is difficult for several reasons: treatments that decrease both cost and effectiveness and treatments that increase both cost and effectiveness can yield identical values of the ICER; the ICER is a discontinuous function of the mean...