====== 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.