What role does economic evaluation play in improving health care quality?

Economic evaluation plays a crucial role in improving health care quality by comparing costs and benefits in order to guide resource allocation. This process allows decision-makers to weigh the financial expenditures against the health outcomes achieved, enabling them to determine the most effective use of limited resources. By performing these evaluations, health care systems can identify which interventions provide the greatest value for money—essentially ensuring that funds are directed towards treatments and programs that yield the best health outcomes for the population served.

Incorporating economic evaluation into health care decision-making enhances overall quality by promoting efficiency and effectiveness in health services. It encourages innovation and helps to prioritize initiatives that can lead to better patient care, ultimately leading to improved health outcomes while also being mindful of budgetary constraints.