Identifying Interventions: The first step is to identify the healthcare interventions to be compared. This could include medical treatments, preventive measures, or public health programs. Measuring Costs: The next step is to measure the costs associated with each intervention. This includes direct costs like medical expenses and indirect costs such as lost productivity. Measuring Outcomes: Outcomes are measured in terms of QALYs or DALYs. This usually involves collecting data on patient health status and converting it into utility values using tools like the EuroQol-5D (EQ-5D) or the Health Utilities Index (HUI). Calculating Cost per QALY/DALY: The costs and outcomes are then used to calculate the cost per QALY or DALY for each intervention. This is often expressed as an incremental cost-effectiveness ratio (ICER), which compares the additional cost and additional benefit of one intervention over another. Interpreting Results: Finally, the results are interpreted to determine which intervention offers the best value for money. This often involves comparing the ICER to a threshold value that represents the maximum amount society is willing to pay for an additional QALY or DALY.
