
This module focuses on the technique of economic evaluation. As resources are scarce choices need to be made about how to best allocate those scarce resources. Given resources are finite provision of one option means there is less resource that can be spent elsewhere and as such another option will likely have to be sacrificed (i.e., there is generally an opportunity cost associated with the provision of a particular health care intervention as it means another intervention will not be provided). Economic evaluation typically compares the costs and benefits of different health care interventions with a view to establish which intervention is more cost-effective i.e., which intervention offers value for money and should therefore be provided (at the expense of another intervention which would not be provided).