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210608L - COST UTILITY ANALYSIS

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Lecture to the Health Economics module of the Diploma of Clinical Research Coordinators by Omar Hasan Kasule Sr Professor of Epidemiology and Bioethics June 8, 2021


DEFINITION OF CUA
  • CUA was introduced to solve the problem of measuring benefits encountered in CBA
  • CUA values the benefits of health services in terms of utility.
  • The most commonly used measure of utility is the number of years of life gained due to the health intervention.

MEASURES OF YEARS OF HEALTH USED IN CUA
  • Years of Potential Life Lost (YPLL)
  • Healthy Years Equivalent (HYE).

MEASURES OF LIFE QUALITY
  • Years of healthy life (YHL)
  • Quality-adjusted life years (QALY),
  • Disability-adjusted life years (DALY).

USES OF CUA
  • Cost-utility analysis enables making a decision about which of 2 or more interventions is better per cost unit when the outcome measure reflects the values and preferences of society.
  • Since CUA is based on consumer preferences, it is of limited application due to its many value-laden assumptions.