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Cost–utility analysis of public health interventions

This chapter builds upon Chapters 2 and 6 by introducing the reader to the history and concepts of health-related quality of life, cost–utility analysis, quality-adjusted life years (QALYs), and payer thresholds. The aim of this chapter is to outline in more depth the role of applied cost–utility analyses in the economic evaluation of public health interventions. The chapter goes on to reproduce a paper by Owen and colleagues at the National Institute for Health and Care Excellence (NICE) in the United Kingdom. This paper shows that many public health interventions often have a cost per QALY considerably lower than the £20,000 payer threshold conventionally used by NICE in the United Kingdom.