Cost-effectiveness and cost-utility analysis
Compare differences in costs and health outcomes between options. When quality-adjusted life years (QALY) are used, the sources of utility values and estimation methods must be described.
Medical Writing
Health economics documents and models
Health economic evaluation compares the costs and health outcomes of different options for medical, health economics and market access teams and relevant professional reviewers. Conclusions must be read alongside the evaluation perspective, comparators, time horizon and model assumptions.
Cost-effectiveness does not imply budget savings; the two analyses answer different questions.
01 · Deliverables
Interpreting costs, health outcomes and uncertainty together
The commissioned scope is confirmed against the research question and intended use. The current deliverables are listed below.
Budget impact analysis
Estimate budget changes over a defined period after an option is introduced, from the budget holder's perspective, considering the eligible population size, uptake and resource expenditure.
Deliverables
Health economics documents and models
- Service scope
- We interpret costs and health outcomes within the same framework, explicitly stating the evaluation perspective, cost scope and model assumptions, and retaining uncertainty.
- Deliverables
A health economic evaluation protocol, specifying the evaluation perspective, comparators, cost scope, time horizon and discounting assumptions.
A cost-effectiveness/cost-utility analysis report.
A budget impact analysis report.
A systematic literature review of parameters required for economic evaluation, including costs and utility values.
A health economic evaluation manuscript for journal submission, with a CHEERS 2022 checklist.
An executable health economic model in Excel or R, according to the client's requirements.
Draft economic sections for a value dossier.
- Specifications and timeline
- Evaluation methods follow the China Guidelines for Pharmacoeconomic Evaluations (中国药物经济学评价指南), using the version current at commissioning. Evaluation reports are checked item by item against CHEERS 2022; budget impact analyses follow ISPOR good practice for budget impact analysis (2014); literature reviews are reported under PRISMA 2020. Timelines are confirmed for each project.
- Pricing basis
- We first issue a requirement confirmation form, followed by an itemised quotation.
Model files use Excel or R, as confirmed according to the client's requirements.
02 · Content structure
Evaluation report and model structure
Figure caption
Illustrative model structure, without real or simulated effect estimates.
- Question and analysis plan
- Define the population, comparators, evaluation perspective, time horizon and outcomes.
- Evidence and model methods
- Describe parameter sources, model structure, cost scope, price year and key assumptions.
- Results and uncertainty
- Present base-case results and sensitivity and scenario analyses, distinguishing parameter uncertainty from the effects of structural assumptions.
- Interpretation and limitations
- Explain the conditions under which results apply, information gaps and limits of extrapolation.
Model structure must reflect the research question, available data and evaluation purpose; every structure has conditions for use and limitations.
Decision tree
Branches represent event pathways, suiting questions with a relatively clear event sequence and limited need for repeated state transitions. For long-term recurrent events, assess whether this structure adequately represents the process.
Markov state-transition model
Health states, cycles and transitions describe the course of disease. State definitions, transition estimates and assumptions about prior disease history must be described.
Partitioned survival model
Survival functions estimate the proportions in each health state. Curve sources, extrapolation methods and mutual consistency must be explained; model choice cannot rely solely on goodness of fit.
03 · Work steps
From evaluation question to verifiable results
Scope and comparison framework
Define the evaluation perspective, comparators, cost scope, time horizon and discounting, distinguishing the tasks of cost-effectiveness and budget impact analysis.
Compile parameters and evidence
Record the sources, units, times and populations for effect, cost, utility and other parameters; explain choices when sources disagree.
Model and calculations
Select a structure appropriate to the question and materials, link parameters and assumptions to calculated results, and check units, state proportions and key calculation relationships.
Uncertainty analysis
Examine how changes in key parameters and scenarios affect results, avoiding reporting only favourable scenarios.
Check report against model
Check model outputs, text, figures/tables and conclusions, describe limitations and requirements for running the model, and retain comment resolution records.
04 · Standards and guidance
Evaluation methods and reporting standards
Methodological guidelines, reporting checklists and budget impact analysis recommendations serve different purposes.
| Standard and scope | Version, content and purpose |
|---|---|
| Economic evaluation reporting | The Consolidated Health Economic Evaluation Reporting Standards (CHEERS 2022) contain 28 items. Item 4 concerns the analysis plan; items 8–10 concern perspective, time horizon and discounting; items 14–17 concern costs, price year, models and assumptions; item 20 concerns uncertainty; items 22–25 concern main results and related effects.CHEERS 2022 statement. |
| Parameter evidence reviews | The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 main checklist is used for reporting systematic literature reviews. Items 6–9 address information sources, searches, selection and data collection; item 16 addresses study selection results.PRISMA 2020 statement. |
CHEERS 2022 supports complete and transparent reporting. It is not a model certification standard and does not replace review of model structure, parameters and applicability.
05 · Samples and examples
Example presentation of cost-effectiveness and uncertainty
The example shows the joint distribution of incremental costs and health outcomes and how conclusions depend on willingness-to-pay assumptions.
Figure caption
The data are simulated, using 2,500 correlated samples of incremental costs and incremental QALYs. Mean incremental QALYs are 0.181 and mean incremental costs are 5,079 hypothetical currency units. At a willingness to pay of 50,000 units/QALY, the proportion with positive net monetary benefit is 74.8%. Results do not correspond to any real technology, regional prices or reimbursement decision.
06 · Frequently asked questions
Frequently asked questions
Executable model files
The current deliverables include executable health economic model files in Excel or R, as confirmed according to the client's requirements. The specific modelling scope is listed in the requirement confirmation form.
Cost-effectiveness and budget impact
Cost-effectiveness analysis examines relative changes in costs and health outcomes; budget impact analysis examines changes in total expenditure in a specific budget setting. Neither can replace the other.
Conclusions when evidence is insufficient
Parameter gaps, extrapolation assumptions and uncertainty must be described in the report; scenario assumptions must not be presented as observed study results.
Manuscript authorship and publication
Writing and statistical support for journal submission follows the recommendations of the International Committee of Medical Journal Editors (ICMJE) and Good Publication Practice 2022. Our contribution is disclosed in the acknowledgements in line with ICMJE and GPP 2022; we are not listed as authors. We do not promise publication outcomes.
Get started · Submit a request
Submit a medical writing request
Please provide the evaluation question, target region and intended use, comparators, available data or models, proposed deliverables and timing requirements.
Submit a medical writing requestWe first issue a requirement confirmation form, followed by an itemised quotation and schedule. Reply within 24 hours (business days first). · contact@yantohealth.cn
This section describes our services. It does not concern any specific medicinal product and does not constitute drug advertising. Final deliverables, timelines, prices and each party's obligations are governed by the contract signed by both parties.
Writing and statistical support for research publications follows the recommendations of the International Committee of Medical Journal Editors (ICMJE) and Good Publication Practice 2022. Our contribution is disclosed in the acknowledgements in line with ICMJE and GPP 2022; we are not listed as authors. Funding sources are also disclosed truthfully. We do not promise publication outcomes.