Which statement best describes cost-utility analysis?

• A. It combines quality and quantity of life into a single measure
• B. It uses only monetary outcomes
• C. It considers only the length of life
• D. It ignores patient preferences

Answer: (A)

Cost-utility analysis expresses health outcomes in a single measure that blends how long people live with how good that life is. This is done by assigning a utility value to each health state and multiplying by the time spent in that state, producing quality-adjusted life years (QALYs). A year in perfect health equals 1 QALY, while a year in a less desirable health state is worth less than 1, reflecting preferences about quality of life. This common scale lets you compare interventions that affect survival and quality of life on the same footing.

Monetary outcomes? That’s not the focus here—that describes cost-benefit analysis, where everything is valued in money. Focusing only on the length of life ignores quality, which is why cost-utility analysis is distinct from simpler life-years measures. And patient preferences aren’t ignored; they’re embedded in the utility values that weight each health state.