Which factor should be considered when conducting cost analysis in pharmacoeconomics?

• A. Are we doing cost minimization, cost effectiveness, cost benefit, or cost utility
• B. Best practice in general
• C. Only cost minimization
• D. Time horizon

Answer: (A)

In pharmacoeconomics, the way you frame the analysis determines how costs and outcomes are linked. The factor to consider is which type of economic evaluation you will use—cost minimization, cost effectiveness, cost benefit, or cost utility. This choice sets up what you measure as outcomes, which costs to include, and how you compare options. For example, if the clinical outcomes are essentially the same across interventions, a cost-minimization approach focuses only on costs. If outcomes differ, you’ll need a method that quantifies those differences—cost effectiveness uses natural units, cost utility uses quality-adjusted life years, and cost benefit converts outcomes into monetary terms. Time horizon matters for what costs and effects are captured, but without selecting the evaluation framework first, you can’t properly structure the analysis.