What does the abbreviation ICER stand for?

The abbreviation ICER stands for Incremental Cost-Effectiveness Ratio. This term is widely used in health economics to compare the cost and effectiveness of two or more healthcare interventions. The ICER is calculated by taking the difference in costs between two treatment strategies and dividing it by the difference in their effectiveness, usually measured in terms of health outcomes like quality-adjusted life years (QALYs) or life years gained.

Utilizing the ICER helps policymakers and healthcare providers make informed decisions on resource allocation and the value of new treatments compared to existing ones. By evaluating both the costs and the benefits of interventions, ICER serves as a crucial tool in determining the most cost-effective options for improving health outcomes within a budget-conscious framework. Understanding ICER is essential in fields like nursing and public health, where budgetary constraints often impact the availability and implementation of care options.