A study on economic evaluation of healthcare programmes

Economic evaluation in healthcare is a systematic approach to assess the costs and outcomes of health interventions, providing evidence to guide optimal resource allocation, especially in low- and middle-income countries (LMICs) with limited budgets. This overview examines the primary methods of economic evaluation — cost-minimization analysis (CMA), cost-effectiveness analysis (CEA), cost-utility analysis (CUA), and cost-benefit analysis (CBA) — highlighting their applications, strengths, and limitations. Using secondary data from published studies, national surveys, and programmatic reports, the analysis demonstrates how these methods can inform decision-making for preventive, curative, and public health programmes. Economic evaluation metrics, such as incremental cost-effectiveness ratio (ICER), quality-adjusted life year (QALY), net benefit, and benefit-cost ratio (BCR), provide a quantitative basis for comparing interventions and prioritizing resource allocation. This overview emphasizes the importance of integrating economic evaluation into health policy and planning to ensure efficiency, equity, and sustainability. By systematically comparing interventions, policymakers can maximize health outcomes, reduce financial risk for vulnerable populations, and support human capital development. Ultimately, economic evaluation serves as a critical tool to strengthen healthcare systems and guide evidence-based decision-making, contributing to socio-economic development and improved population health.

Keywords: Economic evaluation, Cost-effectiveness, Health programmes, Resource allocation, QALY.