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Healthcare Management vocabulary · Budgets and Finance

Cost-effectiveness

Meaning in healthcare management, with examples

nounAdvanced term

In healthcare management, cost-effectiveness means: How much health benefit a treatment or service gives for the money spent on it, usually compared with other options.

In Turkish: maliyet etkililik, maliyet-etkinlik

How it is used

Health technology assessment bodies judge new drugs and devices on cost-effectiveness, often using the cost per QALY (quality-adjusted life year). Managers use the same idea when choosing between investments. The adjective is 'cost-effective'.

Example sentences

  1. The board asked for evidence on the cost-effectiveness of the surgical robot before approving it.

  2. Studies on the cost-effectiveness of home dialysis are encouraging.

Common collocations

  • cost-effectiveness analysis
  • cost-effectiveness ratio
  • cost per QALY
  • assess cost-effectiveness
  • capital expenditureMoney spent on buying, building or upgrading long-term assets, such as buildings, scanners or IT systems, rather than on daily running costs.
  • value-based careA way of organising and paying for healthcare that rewards providers for the health results they achieve for patients relative to cost, not for the number of services.
  • clinical outcomeThe effect of care on a patient's health, such as recovery, complications, quality of life or death, used to judge how well a treatment or service works.
  • budgetA plan that sets out how much money a hospital or department expects to receive and spend over a period, usually a financial year.

More terms: Budgets and Finance

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This page explains English vocabulary for learners. It is not medical advice.