ABSTRACT
Chapter 1 explained the decision model of health economics; in cost-effectiveness analysis which uses QALYs, prioritisation involves measuring the costs of procedures, and comparing procedures in terms of the cost per QALY delivered by each. Given a limited budget, procedures are ideally “bought” down a list, from least cost per QALY down, until the budget is exhausted. The decision model is that of the consumer maximising the impact on health.
