HP425      Half Unit
Statistical Methods in Health Care Economic Evaluation

This information is for the 2021/22 session.

Teacher responsible

Prof Alistair Mcguire COW 2.02


This course is available on the MSc in Global Health Policy, MSc in Health Data Science, MSc in Health Policy, Planning and Financing, MSc in International Health Policy and MSc in International Health Policy (Health Economics). This course is available as an outside option to students on other programmes where regulations permit.


This course assumes knowledge of elementary mathematics and statistics. Students who wish to take HP425, but who have not taken an introductory university course in statistics or econometrics, may wish to consider auditing MY451 (Introduction to Quantitative Analysis) in Michaelmas Term in order to prepare themselves for this course. Students who are unsure whether they have the requisite background are encouraged to approach the Lecturer before the start of Lent Term.

This course is envisaged to be complementary to HP422 (Cost-Effectiveness Analysis in Health Care), which is offered in Michaelmas Term.

Course content

This course develops the statistical and modelling techniques necessary to apply economic evaluation to the health care sector. Introduction to random variables and probability distribution, linear regression analysis, logistic regression analysis, survival analysis for health outcomes, survival analysis for treatment costs, parametric and non-parametric approaches for missing data, economic evaluation and clinical trials. Estimation of confidence intervals for cost-effectiveness ratios. Transformation of ratios - net benefit approach. Presentation of results, acceptability curves.

This is the same course as HP4B5E Statistical Methods in Health Care Economic Evaluation (modular), but it has different teaching and assessment arrangements.


This course will be delivered through a combination of lectures and workshops totalling a minimum 30 hours during Lent Term.  Students will also take part in computer workshops to complete problem datasets and practice key skills from the course.

Formative coursework

1000 word essay

Indicative reading

A full reading list is provided at the start of the course. The course makes use of selected parts of the following texts:

  • M Drummond & A McGuire (eds), Economic Evaluation in Health Care: Merging Theory with Practice, OUP, 2001.
  • D Machin, YB Cheung & MKB Parmar, Survival analysis: a practical approach, 2nd edn, Wiley, 2006.
  • J Klein & M Moeschberger, Survival Analysis: Techniques for Censored and Truncated Data, 2nd edn, Springer, 2005.
  • M Cleves, W Gould, R Gutierrez & Y Marchenko, An Introduction to Survival Analysis Using Stata, 3rd edn, Stata, 2010.
  • M Drummond, M Schulpher, K Claxton, G Stoddart & G Torrance, Methods for the Economic Evaluation of Health Care Programmes, 4th edn, OUP, 2015.
  • M Gold, J Siegel, L Russell & M Weinstein, Cost-Effectiveness in Health and Medicine, OUP, 1996.
  • M Johannesson, Theory and Methods of Economic Evaluation of Health Care, Kluwer, 1996.
  • P Johansson, Evaluating Health Risks: An Economic Approach, CUP, 1995.


Project (100%, 4000 words) in the ST.


Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Student performance results

(2017/18 - 2019/20 combined)

Classification % of students
Distinction 26.6
Merit 63.8
Pass 8.5
Fail 1.1

Important information in response to COVID-19

Please note that during 2021/22 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the differing needs of students in attendance on campus and those who might be studying online. For example, this may involve changes to the mode of teaching delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Health Policy

Total students 2020/21: 77

Average class size 2020/21: 15

Controlled access 2020/21: Yes

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Problem solving
  • Application of information skills
  • Communication
  • Application of numeracy skills
  • Specialist skills