Cost-effectiveness threshold

A cost-effectiveness threshold is a benchmark used in healthcare decision-making to determine if a medical intervention provides good value for its cost. It reflects the maximum amount a healthcare system or society is willing to pay for each unit of health benefit, such as a quality-adjusted life year (QALY). If an intervention's cost per health benefit is below this threshold, it's considered economically reasonable; if it's above, it may not be considered a good use of resources. This helps prioritize treatments that maximize health benefits within limited budgets.