Introduction to cost effectiveness analysis in health

This short course is currently on offer for;

To register your interest in future short courses  please contact the Health Economics Group at

Course Leaders: Professor Philip Clarke, Dr Dennis  Petrie, Dr Ya-Seng Hsueh, Dr Kim Dalziel, Health Economics Group, Centre for  Health Policy, Melbourne School of Population and Global Health.

One day course run by Health Economists from the Health Economics Group within the Centre for Health Policy, Melbourne School of Population and Global Health.

On completion of this 1-day course participants should have a better understanding of health priority setting and the application of cost-effectiveness analysis.

In a climate of increasing budgetary pressures organisations, both public and private, are required to take into account economic considerations when making decisions. Economic analysis provides information that can strengthen a case for funding and is designed to be directly relevant to policy makers.

What is it?
This is a one day course that provides an introduction to the application of cost effectiveness analysis in health.  Specifically this course will provide participants with understanding of how economic analysis can be used to assist with the evaluation of health programs and how this information can aid decision making. The course will consist of short lectures, case studies and practical class exercises.

Who is this course designed for?
This course is designed for policy makers, clinicians, researchers, managers and others working in the health sector with an interest in economic issues. No previous knowledge required.

Can this short course operate at my workplace?
Yes, additional short course times and venues are negotiable with groups of 12 or more and can be tailored to a particular organisation’s needs. Please contact the Health Economics at or Ph: +61 3 8344 9111 if you are interested in finding out more.

Course leaders

Philip Clarke holds the chair in Health Economics at the School of Population and Global Health at the University of Melbourne. He has had previous appointments at Oxford University and the University of Sydney. He was involved in developing the United Kingdom Prospective Diabetes Study (UKPDS) Outcomes Model; a computer simulation model for predicting outcomes for patients with Type 2 diabetes. He has expertise in economic evaluation alongside clinical trials, simulation modeling, measurement of health inequalities and international comparisons of drug prices. He has recently contributed to books on cost-effectiveness analysis and cost-benefit analysis published by Oxford University Press.

Dennis Petrie is a Senior Research Fellow in the Centre for Health Policy, Programs and Economics (CHPPE), University of Melbourne and an Honorary Research Fellow at the Health Economics Research Unit (HERU), University of Aberdeen. His research has been in the areas of economics of illicit drugs and alcohol, the longitudinal measurement and evaluation of health inequalities and the economic evaluation of healthcare interventions. He has extensive experience in analysing large and complex international data sets.

Ya-Seng (Arthur) Hsueh is a Senior Lecturer in the Centre for Health Policy, Programs and Economics (CHPPE), University of Melbourne. Dr Hsueh has extensive experience in both teaching and research in health economics. He is the coordinator of the teaching and supervising research project of Health Economics and Economic Evaluation within the Master of Public Health at the University of Melbourne since 2007. His research is focusing on cost-effectiveness analysis on various public health interventions on topical health issues, for example, cost-effectiveness of community pharmacists’ involvement in enhancing compliance and health outcome of cardio vascular disease patients; and cost-effectiveness of Australia and New Zealand nationwide randomised controlled trial of early physical activities on health outcomes for spinal cord injured patients.

Kim Dalziel is a Senior Research Fellow and McKenzie Fellow in the Centre for Health Policy, Programs and Economics (CHPPE), University of Melbourne. She has considerable expertise in modelling health interventions including for regulatory authorities such as PBAC and MSAC in Australia and for the National Institute of Health and Clinical Excellence (NICE) in the UK. Her work has included economic evaluation of complex interventions in areas such as child protection.

Application procedure
Applications for courses can be filled out online via eCart.
Applications close 1 week prior to each course date.

Further Enquiries:
Ph: +61 3 8344  0710

Payment is via the University’s eCart
Course Fees

  • Early Bird Private Rate $550; After 30th September $660 (GST inclusive)
  • Early Bird University/Public sector Rate $385; After 30th September $450 (GST inclusive)

(Lunch, morning and afternoon tea provided)

Workshop size
Limited to 35 places

Cancellation policy
A 90% refund is available if notification is made in writing 1 month before the course date and no refund will be available after this.

Substitutions are permitted but please notify the health economics group in writing,

Location & Time
The course is held at Graduate House, 220 Leicester Street Carlton, The University of Melbourne. Please see map for location. From 9:30am till about 4:30pm.

Course Outline
Module 1: Introduction to Health Economics
Concepts in economics and economic evaluation will be introduced including the role of health economic evaluation, the types of economic evaluation (cost minimisation, cost-effectiveness, cost utility and cost benefit) and methods for valuing health outcomes using measures like health-related quality of life to produce quality-adjusted life years (QALYs).

Module 2: Cost measurement
An introduction to the concepts involved in measuring costs for economic evaluation. The module will cover the principles behind measurement of cost and will teach about how to cost an intervention or program, how to analyse cost data and how to present cost results. There will be an exercise related to costing an intervention or program in practice.

Module 3: Outcome measurement
Concepts involved in measuring outcomes for use in economic evaluation will be covered.  Participants will learn about the different measures of health status, techniques used to value health states, the use of utility scales and methods to calculate a quality-adjusted life year. During the session participants will completed a health state valuation exercise.

Module 4: Interpretation of economic evaluation results for policy
An introduction on how to properly interpret and use cost-effectiveness information to inform policy decisions, especially in relation to priority setting. Participants will be introduced to the understanding, use and misuse of concepts such as cost-effectiveness ratios, league tables, incremental ratios, ceiling ratios, reporting and uncertainty. Participants will complete an exercise relating to use of league tables.

Final session (Optional):
Interested participants are invited to have a short  discussion with the course leaders about the health economics involved in particular  projects they are currently working on.