Economic analyses in health care: An introduction to the methodology with an emphasis on radiation therapy

Payers are increasingly interested in knowing whether they are receiving value for the dollars they spend on health care, Because economic analyses will be used as a means of evaluating radiation therapy, it is important that radiation oncologists understand the basic methodology employed in such analyses, This review article describes the four basic types of economic analyses: cost minimization, cost effectiveness, cost utility, and cost benefit. Specification of alternative therapies, choice of perspective of the analysis, measurements of costs and benefits, and the role of discounting and sensitivity analyses are discussed. Published economic analyses that pertain directly to treatment with radiation therapy are reviewed, Finally, we close with a brief discussion of the potential areas for future economic outcomes research in radiation oncology.