CEA - Part 4 - The Incremental Cost-Effectiveness Ratio (ICER)

If a therapeutic option (drug Y) proves to be more cost-effective but less effective than another (drug X) we can calculate the Incremental Cost-Effectiveness Ratio or ICER. The ICER, given by the "difference in costs/difference in effectiveness" of the two treatments, allows to calculate the incremental cost required by X with respect to Y to successfully treat one patient more than those treated with Y.
The table shows, by way of example, the comparison between two drugs (X and Y) in terms of efficacy, average cost per patient and cost/effectiveness (C/E).
As we can see from the table, the C/E ratio of X (ie € 220 / € 0.90), which corresponds to the cost paid for a successful patient, is € 245, while that of Y is 235 €. In this case, since successfully treating a patient using drug Y costs less than treating it with drug X, drug Y is more cost-effective than X. At the same time, however, we see that drug X is more effective than drug Y (the effectiveness of the former reaches 90%, th...

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