There are four major methods of economic evaluation used in health care decision-making. The four methods are the cost of illness studies, cost-benefit analysis, cost-utility analysis, and cost-effectiveness analysis. Please note that your textbook treats cost-utility analysis as a special form of cost-effectiveness analysis. You have been assigned to evaluate a new medication for disease X.Your focus needs to be on how you would perform the economic evaluation of the medication.

Which of the four types of economic evaluation would you use to perform your evaluation?

What advantages does the type of evaluation you selected have over the other three for this study?

What are some of the disadvantages or limitations of the evaluation you selected?

What information would you need to gather to perform your evaluation? (Please remember you are doing an economic evaluation not a medical/clinical trial for treatment.)