What method best evaluates cost-effectiveness from a practical perspective?

• A. Compare costs to nothing and assume value
• B. Compare costs to outcomes such as health gains, using metrics like cost per unit health gain or QALYs, with sensitivity analyses
• C. Only assess program satisfaction surveys
• D. Focus exclusively on short-term costs without outcomes

Answer: (B)

Evaluating cost-effectiveness from a practical point of view means linking what is spent to what health outcomes are achieved, and expressing value with comparable measures such as cost per unit health gain or cost per QALY. Including sensitivity analyses helps show how results hold up under different assumptions, which makes the findings more useful for real-world decision-making. The other approaches miss essential pieces: comparing costs without outcomes provides no sense of value; relying only on satisfaction surveys ignores health impact; and focusing only on short-term costs neglects benefits that accrue over time.