Cost-utility analysis: an evaluator’s view

Valuing outcomes without monetising them

Suppose a new blood pressure pill enters the marketplace. It’s more effective than the next-best pill, in the sense that it reduces blood pressure to a greater extent. Therefore, we may presume, it’s likely to prevent more strokes and heart attacks. And it’s offered at the same price.

Therefore, cost-effectiveness analysis (CEA), comparing the two medic…