What is an Incremental Cost-Effectiveness Ratio (ICER)?
An Incremental Cost-Effectiveness Ratio (ICER) is a measure of the difference in the mean costs in the population of interest divided by the differences in the mean outcomes in the population of interest for one treatment compared with another. It is used to compare the costs and benefits associated with two different interventions in order to evaluate which one should be used. It is usually expressed as a ratio, with the denominator being the outcome measure (e.g. quality-adjusted life years gained) and the numerator being the additional cost associated with the intervention.