Incremental cost-effectiveness ratio (ICER)

The Incremental Cost-Effectiveness Ratio (ICER) is a measure used to compare the cost and health benefits of two different medical interventions or treatments. It calculates how much extra money is needed to gain one additional unit of health benefit, such as a year of quality life, when choosing one option over another. A lower ICER indicates that the additional benefit is gained at a relatively lower extra cost, helping healthcare providers and policymakers decide which treatments provide the best value for resources spent.