Which is the method of cost analysis that compares health outcome of treatment/interventions in the QALY?

UPUMS Nsg officer-2023

Nursing Research & Statistic

Easy

Appeared in: UPUMS Nsg officer-2023

Explanation

Cost-utility analysis (CUA) is the specific method of economic evaluation that compares the cost of an intervention with its outcome measured in utility-based units.
The most common utility measure used in CUA is the Quality-Adjusted Life Year (QALY).
A QALY combines both the quantity (length of life) and the quality of life into a single, standardized metric.
This allows for the comparison of different types of health interventions (e.g., a cancer treatment vs. a heart disease prevention program) on a common scale, assessing the cost per unit of health gain.

Option A: Cost-of-illness analysis does not evaluate the effectiveness of specific interventions. Instead, it measures the total economic burden of a disease, including direct costs (treatment) and indirect costs (lost productivity).
Option B: Cost-benefit analysis (CBA) measures both costs and health outcomes in monetary terms (e.g., dollars, rupees). It does not use QALYs. The main challenge with CBA is assigning a monetary value to health outcomes like saving a life or improving quality of life.
Option C: Cost-minimization analysis is used only when two or more interventions are proven to have identical health outcomes. Since the outcomes are assumed to be the same, the analysis only compares the costs to find the cheapest option. It does not measure the outcomes in QALYs.

Clinical Relevance

Nursing practice connection: Knowing Types of Health Economic Analysis helps nurses interpret findings accurately and avoid errors in routine assessment, medication administration, and patient teaching.
Understanding different cost analyses is crucial for nurse leaders and administrators when making decisions about resource allocation, adopting new technologies, or developing clinical practice guidelines.
Policymakers use cost-utility analysis to decide which new drugs, devices, or procedures should be covered by national health insurance schemes, based on whether they provide good value for money (i.e., an acceptable cost per QALY gained).
What if? If a new cancer drug extends life by 6 months but with severe side effects (low quality of life), while an older drug extends life by 4 months with no side effects (high quality of life), a cost-utility analysis using QALYs would be essential to determine which drug provides better overall value, rather than just looking at survival time alone.

How to Approach the Question

First, identify the key term in the question: 'QALY' (Quality-Adjusted Life Year).
Recognize that 'QALY' is a measure of 'utility'—it combines both the quantity and quality of life.
Scan the options for a method that incorporates 'utility'. 'Cost-utility analysis' directly includes this term.
Recall or deduce the definitions of the other analysis types to confirm they do not use QALYs. Cost-benefit uses money, cost-minimization assumes equal outcomes, and cost-of-illness measures total burden, not intervention effectiveness.

Concept Tested & Keywords

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