ABSTRACT
In today’s healthcare system, there is an overriding theme to provide cost-effective medical care. The similarity between healthcare services and other economic goods and services was first describe in the 1960s in the seminal article by Kenneth Arrow. Since this time, health economists have worked to develop appropriate analytical methods to compare the cost of medical treatments against the clinical benefits. The process is most commonly referred to as pharmacoeconomics in medical practice because of the strong motivation from pharmaceutical companies to demonstrate that new treatments are cost-effective (1).
