Cost effectiveness analysis is useful when attempting to determine whe
ther the benefits of an intervention are worth its costs. It can help
clinicians to consider more explicitly all potential costs and outcome
s of a given treatment, and it can assist policy makers in determining
how best to allocate limited health-care resources to maximize the he
alth of a population. This article describes the research methods used
to estimate cost-effectiveness, and then examines existing reports on
the cost-effectiveness of lumbar disc surgery. Results of previously
published studies were inconsistent, indicating that estimates of disc
ectomy's cost-effectiveness are highly dependent on how one measures a
nd values the improvement in quality of life resulting from the proced
ure. If only long-term outcomes are considered, the procedure appears
no more effective than continued medical treatment. But discectomy see
ms effective when its short-term benefits are considered. In either ca
se, costs for the procedure are moderate. The authors conclude that fo
r carefully selected patients with herniated lumbar discs, short-term
quality of life is improved substantially with surgical versus medical
treatment. When this benefit is considered, discectomy appears to be
a cost-effective intervention, although this conclusion applies only t
o carefully selected patients with clearly defined indications for sur
gery. For patients without these indications and for patients in whom
the immediate relief of sciatica is less important, discectomy's cost-
effectiveness with be less favorable.