Glossary
Behavioral health economics combines economic theory with psychology to study health-related decisions. It is based on empirical observations that show individuals don't always make rational decisions, even with all necessary information and tools. It uses experimental methods to investigate and improve decision-making among healthcare professionals and patients through targeted interventions.
A comparison of financial impacts between one or more interventions and one or more comparators. It estimates affordability (in contrast to cost-effectiveness which estimates value for money), by forecasting the healthcare costs and savings arising from each strategy decision, taking into account strategy costs, downstream costs influenced by effectiveness and safety, target population size, and market shares.
An explicit comparison of the costs (e.g. due to healthcare resource use) and consequences (health outcomes, health benefits and adverse events) of one or more interventions (such as treatments, devices, and policies) and one or more comparators. It estimates the value for money of an intervention. This type of analysis can support the optimal allocation of limited healthcare resources.
Types of economic evaluation include cost-benefit analysis (effectiveness is valued in monetary units), cost-effectiveness analysis (effectiveness is expressed by a single clinical endpoint parameter), cost-utility analysis (effectiveness is expressed in quality-adjusted life years) and cost-minimization analysis (effectiveness is assumed to be equal, and only costs are compared).
Environmental health economics studies the economic impact of the healthcare sector on the environment. It combines health economics with environmental and social science to explore how healthcare activities affect the environment. It examines the economic impact of environmental policies in public health and the awareness and attitudes of healthcare professionals and patients towards sustainability, with the goal of achieving sustainable healthcare practices.
The European Quality of Life - 5 Dimensions instrument is a concise, generic measure of self-reported health-related quality of life (HRQoL) developed by the EuroQol. HRQoL is defined as the "value assigned to duration of life as modified by the impairments, functional status, perceptions and social opportunities that are influenced by disease, injury, treatment or policy". (Patrick and Erickson 1993)
A structured document outlining the methods and procedures that are to be performed in the conduct of economic evaluations of healthcare, public health, or health policy interventions. The HEAP ensures that economic evaluations are performed systematically, transparently, consistently, and that analyses were pre-planned, thus minimizing biases associated with post-hoc analyses.
Health preferences research focuses on understanding and quantifying the preferences and priorities of individuals, patients, and populations regarding healthcare interventions and outcomes. By exploring what people value most in their healthcare experiences—such as quality of life, treatment efficacy, side effects, price, or accessibility—this research helps inform decision-making and resource allocation. Techniques such as discrete choice experiments (DCEs), conjoint analysis, and time trade-offs or standard gamble methods are commonly used to elicit preferences and measure utilities. These insights are essential for cost-utility analyses, where health benefits are measured in terms of quality-adjusted life years (QALYs). By incorporating patients’ and stakeholders’ values into economic evaluations, health preferences research ensures that healthcare policies and interventions align with societal priorities, ultimately contributing to more patient-centered and efficient healthcare systems.
A comprehensive and multidisciplinary evaluation of a health technology or healthcare strategy (e.g. medicine, vaccine, medical device, software, public health intervention) that considers clinical / public health, economic, ethical, social, legal, institutional, and other relevant implications of using, distributing, implementing, or reimbursing the health technology or healthcare strategy.
Integration with implementation science further ensures that evidence-based interventions are effectively adopted, scaled, and sustained within healthcare systems. This interdisciplinary approach supports the design and evaluation of strategies that maximize health benefits while minimizing costs, ultimately guiding policymakers and stakeholders in improving healthcare delivery and optimizing resource use.
A quantitative measure of health that incorporates length of life and quality of life, such that one year of life spent in full health is equal to one QALY.
In healthcare-related research, these are data that were collected for purposes other than research. They include, e.g., routine clinical or public health data, and health insurance claims data.
Qualitative and potentially quantitative syntheses of research that aims to answer a specific research question organized as a PICO: Population, Intervention, Comparator, Outcome. The quantitative component, if meaningfully feasible, takes the form of a meta-analysis.
Valuation of patient outcomes enables the assessment of healthcare interventions beyond traditional clinical measures. This field focuses on quantifying the value individuals place on different health states and outcomes, often using tools like quality-adjusted life years (QALYs) and disability-adjusted life years (DALYs). These measures combine life expectancy with the quality of health during those years, providing a holistic perspective on treatment benefits. By integrating patient preferences and subjective experiences, the valuation of outcomes ensures that economic evaluations are aligned with what matters most to patients. This approach supports resource allocation decisions, helping policymakers and healthcare providers prioritize interventions that deliver the greatest value to both individuals and society.
Value-Based Healthcare (VBHC) is a transformative approach that prioritizes maximizing health outcomes relative to the costs of delivering care. It shifts the focus from volume-driven healthcare, where success is measured by the quantity of services provided, to outcomes-driven care, emphasizing patient health and satisfaction. VBHC encourages the integration of cost-effectiveness and patient-centered outcomes into decision-making processes. By aligning incentives among providers, payers, and patients, VBHC aims to improve care quality, reduce unnecessary expenditures, and enhance overall system efficiency. Key components include outcome measurement, bundled payments, and evidence-based interventions tailored to achieve the best results for patients. As a part of health economics, VBHC guides policymakers and healthcare organizations in designing systems that deliver high-value care, ensuring sustainable and equitable health systems.