[Dictionary] ICER (Incremental Cost-Effectiveness Ratio)

The ICER (incremental cost-effectiveness ratio) is the additional cost of one health intervention compared with a next-best alternative, divided by the additional health benefit (usually measured in QALYs) that intervention produces: ICER = (Cost A - Cost B) / (QALYs A - QALYs B). It is the primary quantitative output a health technology assessment body compares against a cost-effectiveness threshold when deciding whether a new technology represents good value relative to current practice.