Cost-Effectiveness Analysis (CEA) is a method used to compare the relative costs and outcomes of different interventions or programs. It helps decision-makers determine which option provides the best value for money by assessing the costs associated with achieving a specific health outcome, such as years of life saved or improved quality of life.
In CEA, costs are typically measured in monetary terms, while outcomes are expressed in natural units, like quality-adjusted life years (QALYs). This analysis aids policymakers in allocating resources efficiently, ensuring that limited funds are used to maximize health benefits for the population.