Incremental cost-effectiveness ratio

The Incremental Cost-Effectiveness Ratio (ICER) is a metric used to compare the additional cost and benefit of one healthcare intervention over another. It helps determine whether the extra expense of a new treatment is justified by its added health benefits, such as improved quality of life or survival. Specifically, ICER calculates the extra cost per each additional unit of health gained, like a year of life or quality-adjusted life year. This information assists policymakers and healthcare providers in making informed decisions about resource allocation to maximize health outcomes efficiently.