Cost-effectiveness in Healthcare

Cost-effectiveness in healthcare refers to comparing the costs of different medical interventions to their health benefits. It helps determine which treatments provide the most significant health improvements at the lowest cost. For example, if a new medication improves patients' health significantly but is much more expensive than an existing treatment with similar results, the cost-effectiveness analysis helps identify whether the new option is worth the extra expense. Ultimately, it informs decisions about allocating limited healthcare resources to achieve the best possible health outcomes for patients.