Cost-effectiveness analysis and alternative health care programs for the elderly.

Abstract

A generalized cost-effectiveness technique for comparing alternative health care programs is described, and an example is given of its use in evaluating programs for care of the elderly. The analytical method requires setting criteria and standards for each outcome and cost dimension and assessing the relationship between these standards and patient status. The relative effectiveness and costs of each setting are examined in a simple tabular display that allows comparison of each program's attainments on each criterion so that alternatives may be ranked according to the extent to which they meet standards and incur costs.