ICER (cost)
The cost-per-extra-QALY a treatment delivers compared to the standard of care.
Definition
The Incremental Cost-Effectiveness Ratio (ICER) = (Cost_new - Cost_standard) / (QALYs_new - QALYs_standard). It's the standard cost-effectiveness metric used by NICE, ICER (the US body), CADTH, PBAC, and others. Lower ICER = better value. NICE threshold: £20–30k/QALY; severity modifier raises this for severe diseases.
See also
- QALY — A measure combining length and quality of life used in cost-effectiveness analysis.
- NICE — The UK body that decides whether the NHS will reimburse a drug, based on cost-effectiveness.
- NICE TA — The NICE process that decides whether the NHS will fund a new medicine.