PHARMACOECONOMICS AND THE EVALUATION OF DRUGS AND SERVICES

The field of pharmacoeconomics is of growing interest to everyone from government policy makers to medical staff and administrators at hospi tals and other managed care settings. This article reviews basic termi nology and methodologic issues related to using pharmacoeconomics to e valuate drugs and services. Economic evaluation tools such as cost-ben efit analysis, cost-effectiveness analysis, cost-utility analysis, and cost-minimization analysis are described. The challenge for all clini cians is to use these economic evaluation tools to optimize the benefi t-to-cost ratio and resultant positive outcome of programs, services, treatments, or other interventions for the patient, the institution, a nd society.