What is the primary purpose of health economic evaluation?

• A. Compare costs and outcomes of healthcare interventions
• B. Determine the cheapest intervention
• C. Measure patient satisfaction
• D. Predict disease prevalence

Answer: (A)

At its core, health economic evaluation asks how an intervention's health benefits stack up against its costs, so decision-makers can judge value for money and allocate limited resources wisely. This approach compares two or more healthcare options by looking at both what they cost and what health outcomes they produce, not just the price tag. For example, a more expensive treatment might yield substantially better health gains, and an economic evaluation helps determine whether that extra benefit is worth the extra cost using measures like cost per QALY or cost per life-year gained. It also accounts for factors such as who is paying (perspective), how long the effects last (time horizon), and uncertainty in the evidence.

This isn’t simply about finding the cheapest option, because lower cost doesn’t always mean better value if outcomes are poorer. It also isn’t about measuring patient satisfaction or predicting how common a disease will be, which are separate considerations. The primary aim is to inform choices that maximize health benefits relative to resources spent.