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The incremental cost-effectiveness ratio is the central output of most cost-effectiveness and cost-utility analyses, calculated as the difference in cost between two options divided by the difference in their effect, and commonly expressed as an additional cost per quality-adjusted life year gained. It represents the extra amount that must be paid to obtain an additional unit of health benefit by choosing one option over another, and it is compared against a cost-effectiveness threshold to judge whether that additional benefit is worth its additional cost. The ratio can be unstable or difficult to interpret when differences are very small or when an option is more effective and less costly, situations better handled by net-benefit measures. It is the metric HTA bodies most often use to summarise value for money, and understanding it is essential to constructing and communicating an economic case.

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Sustainability and NET Zero for MedTech

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