converge · Decision Making · 480–1440 min · 1-5 people · low energy

Cost-Utility Analysis

Cost-Utility Analysis (CUA) is a specialized form of cost-effectiveness analysis that incorporates individual preferences or utilities into the assessment of outcomes. It provides a comprehensive measure of value based on how people perceive the benefits of an intervention.

When to use Cost-Utility Analysis

Use when needing to account for individual preferences and values in the evaluation of health or social programs, especially when quality of life is a key outcome.

What it solves

Difficulty in capturing the subjective value of program outcomes; needing a way to incorporate individual preferences into the analysis.

How to run Cost-Utility Analysis, step by step

  1. Define the objective and identify alternative interventions (120 min)
  2. Measure the costs of each intervention (120 min)
  3. Elicit individual preferences or utilities for the outcomes of each intervention (240 min)
  4. Calculate the cost-utility ratio for each intervention (60 min)
  5. Compare the cost-utility ratios and identify the most efficient option (30 min)
  6. Conduct sensitivity analysis to assess the impact of uncertainty (30 min)

Materials needed

  • Data on costs
  • Utility elicitation tools (e.g., questionnaires)
  • Spreadsheet software
  • Sensitivity analysis tools

Facilitator tips

  • Use appropriate utility elicitation methods.
  • Ensure the utility measures are reliable and valid.
  • Conduct sensitivity analysis to assess the robustness of the results.

Common pitfalls

  • Difficulty in eliciting accurate utility values; use validated instruments.
  • Bias in utility elicitation; use trained interviewers.

Variations

  • Quality-Adjusted Life Years (QALYs)
  • Disability-Adjusted Life Years (DALYs)

Running it online or hybrid

Data collection and analysis can be done remotely, with findings presented and discussed via video conference.

What it produces

A report outlining the costs, utilities, and cost-utility ratios of the different interventions.

Origin

Adapted from BetterEvaluation — source

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