Decision and cost-effectiveness analysis are the tools used in medicine to formally portray clinical and policy decisions. Decision analysis estimates the health consequences of alternative courses of action. Cost-effectiveness analysis estimates economic costs per gain in health status. The objectives of this course are to give students the following knowledge and skills:

  • Understand the principles of decision analysis (DA), including decision trees to portray action options and their consequences;
  • Understand the principles of cost-effectiveness analysis (CEA), including health and cost inputs and cost-effectiveness ratios;
  • Understand uncertainty, how it is quantified, and how it is addressed in DA/CEA;
  • Understand disease state (Markov) modeling and its uses;
  • Understand and experience steps in conducting a DA/CEA;
  • Use a computer spreadsheet to do DA/CEA computations;
  • Design a DA/CEA in an area of expertise; and
  • Know how to critique published DA/CEAs, including structure, inputs, and findings.