Fact Check: "The Incremental Cost-Effectiveness Ratio (ICER) is used in health economics."
What We Know
The Incremental Cost-Effectiveness Ratio (ICER) is a fundamental concept in health economics, widely used to evaluate the economic efficiency of medical interventions. According to a review published in the Journal of the American College of Cardiology, ICER is defined as the extra cost incurred for gaining one unit of health benefit, which is typically measured in terms of quality-adjusted life years (QALYs) or life-years gained (Cohen et al.). This measure allows for the comparison of the cost-effectiveness of different health care strategies, helping policymakers and clinicians make informed decisions regarding resource allocation (Bang & Zhao).
The ICER is calculated by taking the difference in costs between two treatment options and dividing it by the difference in their effectiveness. This ratio provides a standardized way to assess whether the additional cost of a new treatment is justified by its additional health benefits (HERC). The concept is integral to cost-effectiveness analyses (CEA), which are essential for evaluating competing treatments and understanding their economic implications (Perraillon).
Analysis
The claim that ICER is used in health economics is supported by multiple credible sources. The Journal of the American College of Cardiology clearly states that ICER is a standard measure in cost-effectiveness analysis, emphasizing its role in assessing the value of new medical strategies against existing ones (Cohen et al.). Furthermore, the article by Bang and Zhao reinforces this by describing how ICER has been utilized for evaluating treatment options, particularly when one treatment is more effective but also more expensive than its competitor (Bang & Zhao).
Additionally, the Wikipedia entry on ICER provides a concise definition and context, affirming its use in health economics as a summary measure of economic value (Wikipedia). The Health Economics Research Centre also explains the calculation and application of ICER in evaluating health interventions, further validating its significance in the field (HERC).
The reliability of these sources is high, as they come from peer-reviewed journals and established health economics resources. The information presented is consistent across multiple reputable publications, indicating a strong consensus on the role of ICER in health economics.
Conclusion
Verdict: True
The claim that "The Incremental Cost-Effectiveness Ratio (ICER) is used in health economics" is accurate. ICER is a widely recognized and utilized measure in cost-effectiveness analysis, serving as a critical tool for evaluating the economic value of medical interventions. Its consistent mention across multiple credible sources underscores its importance in informing healthcare decisions and policy.
