There are three approaches to health economic evaluation for comparing two
therapies. These are (i) cost minimization, in which one assumes or observe
s no difference in effectiveness, (ii) incremental cost-effectiveness, and
(iii) incremental net benefit. The latter can be expressed either in units
of effectiveness or costs. When analysing data from a clinical trial, expre
ssing incremental net benefit in units of cost allows the investigator to e
xamine all three approaches in a single graph, complete with the correspond
ing statistical inferences. Furthermore, if costs and effectiveness are not
censored, this can be achieved using common two-sample statistical procedu
res. The above will be illustrated using two examples, one with censoring a
nd one without. Copyright (C) 2001 John Wiley & Sons, Ltd.