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The term cost-effectivenesshas becomesynonymous with health economicevaluation and has been used (and misused)to depict the extent to which interventionsmeasure up to what can be considered torepresent value for money. Strictly speaking,however, cost-effectivenessanalysis is oneof a number of techniques of economicevaluation, where the choice of techniquedepends on the nature of the benefitsspecified.
Cost-effectiveness analysis is a form of economic analysis that compares the relative costs and outcomes of different courses of action. Cost-effectiveness analysis is distinct from cost–benefit analysis, which assigns a monetary value to the measure of effect.