Economic evaluation is the comparative analysis of alternative health care
interventions in terms of their relative costs (resource use) and effective
ness (health effects). High-quality studies of economic evaluation have bee
n increasingly published in medical journals and read by clinicians, althou
gh publication of these studies in nephrology journals has been a more rece
nt phenomenon. This article shows how the basic principles of economics can
be applied to health care through the use of economic evaluation. Differen
t types of economic evaluation are discussed, and pitfalls common to such s
tudies are identified. A simple framework is introduced that can be used to
interpret the results of economic evaluations. Using this framework, selec
ted therapies for patients with end-stage renal disease (ESRD) are categori
zed to highlight therapies that are very efficient, encourage their use, an
d draw attention to therapies in current use that are less effective and mo
re expensive (ie, less efficient) than alternative therapy. Using examples
pertinent to care of the patient with ESRD, we show how economic evaluation
can be used to link medical outcomes, quality of life, and costs in a comm
on index for multiple therapies with disparate outcome measures. This artic
le highlights the need for clinical studies and economic evaluations of the
rapies in ESRD for which the effects of the therapy on health outcomes and/
or costs are unknown. (C) 2000 by the National Kidney Foundation, Inc.