Cost-effectiveness analysis: A primer for psychologists

Given the move to managed care and capitated budgets, psychologists must now prove that the treatments being offered are clinically effective in allaying symptoms and are cost-effective. Cost-effectiveness analysis (CEA) is often seen as a daunting task requiring one to pour over spread sheets with little empathy for the patient. This article attempts to break this daunting task down into nine reasonable steps. By using CEA, psychologists will have the data to compete for dollars in this time of limited funds. An overriding attempt was made not to use excessive technical jargon or formulas in this review. The goal of this article is to offer the average practitioner, clinic director, or department chair an easily understood method that can be adapted and applied to his or her unique environment. If psychologists, individually and as a profession, choose to ignore the power of CEA, other professionals may step in and take this power and control our future.