Yusra Habib*
Pharmacoeconomics is a field that aims to evaluate the economic impact of pharmaceutical products and interventions on healthcare systems. Within this field, Cost-Effectiveness Analysis (CEA) plays a crucial role in assessing the value of healthcare interventions by comparing their costs and outcomes. This comprehensive review examines the importance of CEA in pharmacoeconomics and its applications in decision-making processes, resource allocation, and healthcare policy. Cost-effectiveness analysis is a tool used to evaluate the relative value of different healthcare interventions. It involves comparing the costs of an intervention with its outcomes or benefits in monetary or quantitative terms. CEA provides a systematic framework for decision-makers to assess the cost-effectiveness of interventions and allocate resources efficiently. CEA utilizes various methodologies, such as decision trees, Markov models, and simulation techniques, to estimate costs and outcomes. The review discusses these methodologies and highlights their advantages and limitations in different healthcare contexts. Sensitivity analysis and uncertainty analysis are also crucial components of CEA, allowing for the assessment of the robustness of results and addressing uncertainties.
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