Cost-Utility Analysis (CUA) [Neurosurgery Wiki]

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====== Cost-Utility Analysis (CUA) ======

**Definition:**  
Cost-utility analysis (CUA) is an economic evaluation method that compares the costs of different interventions relative to their health outcomes, measured in **quality-adjusted life years (QALYs)** or **disability-adjusted life years (DALYs)**.

**Typical ICUR formula (Incremental Cost-Utility Ratio):**  
  (Cost_A − Cost_B) / (QALY_A − QALY_B)

**Key elements:**
  * **Costs:** Includes direct medical costs (e.g., drugs, surgery, hospitalization) and sometimes indirect costs (e.g., productivity losses).
  * **Utilities:** Quantifies health-related quality of life on a scale from 0 (death) to 1 (perfect health).
  * **Outcome:** Expressed as cost per QALY gained.

**Purpose:**  
Used to help policymakers determine whether a healthcare intervention offers good value for money compared to alternatives with different health effects.