Economic Evaluation is concerned with the best use of limited resources, and occurs in a decision specific context of identifying the most efficient way of meeting a stated objective.
Its main function is to allow policy makers, managers and clinicians to make choices by assessing the costs and benefits of achieving objectives by different methods. Health care budgets are limited. However there is no limit to expenditure if all existing demands are to be met.
Finite resources and this discrepancy between the demand and the available supply suggest that a formula for allocating resources among the various competing sectors is necessary. Thus choices have to be made between differing treatments, treatment settings and illnesses to allow judicious use of scarce resources.
Its main function is to allow policy makers, managers and clinicians to make choices by assessing the costs and benefits of achieving objectives by different methods. Health care budgets are limited. However there is no limit to expenditure if all existing demands are to be met.
Finite resources and this discrepancy between the demand and the available supply suggest that a formula for allocating resources among the various competing sectors is necessary. Thus choices have to be made between differing treatments, treatment settings and illnesses to allow judicious use of scarce resources.
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