HP4A3E      Half Unit
Resource Allocation and Cost-effectiveness Analysis

This information is for the 2025/26 session.

Course Convenor

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The aim is to give an overview of the theory underlying economic evaluation as applied to the health care sector; to consider the different forms of economic evaluation; to give an understanding of the techniques associated with economic evaluation as applied to health care; to give an understanding of the interpretation of the results gained from economic evaluation; to provide the main practical tools necessary to undertake economic evaluation using computer-based programs. The course will cover the following topics: Conceptual rationales for economic evaluation in the health care sector (Pareto efficiency, Social Welfare, extra-welfarism and decision-making); Introduction to the methods of economic evaluation: cost-effectiveness analysis, cost-utility analysis, and Cost-benefit analysis; Cost data; Incremental cost-effectiveness analysis; Quality Adjusted Life Years gained and other outcome measures; Discounting; Uncertainty and sensitivity analysis; Economic evaluation and clinical trials; Policy decision-making using economic evaluation. 

This course will be delivered as a combination lectures and seminars. In seminars students will work on structured learning activities set by the course lead.

In class group exercise: critical appraisal of published evidence

M Drummond et al, Methods for the Economic Evaluation of Health Care Programmes, Oxford, OUP, 2015, fourth edition..

M Drummond & A McGuire (Eds), Economic Evaluation in Health Care: Merging Theory with Practice, Oxford, OUP, 2002.

Gray, A. Clarke, P.M, Wolstenholme, P., Wordsworth, S. Applied Methods of Cost-effectiveness Analysis in Healthcare (Handbooks in Health Economic Evaluation), Oxford, OUP, 2011.

Students will be given access to essential readings before the course begins through the pre-sessional reading programme on Moodle, which they will be expected to read prior to the first day of class.

Critical evaluation (100%)

Students will complete a take home assessment of critical appraisal of a published study (100% of the final mark) in the weeks following teaching delivery.