This commentary takes up A. David Paltiel's invitation to reflect on how to
promote the use of decision analysis and cost-effectiveness analysis in he
alth. From the perspective of a health services researcher outside the U.S.
system, I make 3 arguments. First, the unthinking use of the term rationin
g for all applications of cost-effectiveness analysis distorts research pri
orities and may jeopardize wider public support. Second, public skepticism
about decision and cost-effectiveness analysis (and thus the skepticism of
decision makers) is well founded when ethical dimensions of these methods a
re not considered. We must continue to refine our methods to take account o
f societal values. Third, the United States may have particular problems in
adopting more rational decision making in health care. The dominance of fo
r profit institutions in the U.S. health care system erodes the social legi
timacy on which other systems depend to improve the rationality of health c
are decision making.