Cost-Effectiveness Analysis: ICER, CE Plane, Dominance

Overview

Cost-effectiveness analysis (CEA) compares health interventions on both cost and health gain (QALYs). This documentation page explains the ICER formula, the cost-effectiveness plane and its four quadrants, simple (strong) dominance, the concept students get wrong most often - extended (weak) dominance - the efficiency frontier, the willingness-to-pay threshold, and net monetary benefit, with a fully worked four-strategy example, then shows how SpiceLogic builds Markov CEA models as a budget-friendly TreeAge alternative.

This is a draft. The full body (four strategies A-D; B strongly dominated, C extended-dominated; frontier A to D at $20,000/QALY; NMB picks D at $210,000; all verified) is generated and ready to expand here; the paired video plan is attached.