Quality-adjusted life year measures (QALYs) have been fervently debate
d by researchers and decision makers concerned with resource allocatio
n in the health care sector. They have been heralded as important aids
to planning and priority setting, but also criticised on technical an
d ethical grounds. This paper examines these arguments with special re
ference to mental health care, the intention being to highlight the st
rengths and shortcomings of QALYs in this context. Issues pertinent to
the application of QALYs in health care evaluation more generally are
also reviewed. Whilst the rationale and underlying principles of the
utility measurement approach are sound, the generic QALY as it is curr
ently constructed represents an insensitive measure of the outcomes of
mental health care. In the event of an increasingly QALY-driven prior
ity-setting environment, however, abandonment of QALYs runs the risk o
f inappropriately marginalising people with mental illnesses in the re
source allocation process. This opens up the possibility of developing
a mental-health specific measure of utility that, in combination with
cost data, would provide useful and appropriate summary information a
cross treatments and programmes of mental health care.