Edited by Michael F. Drummond, Mark J. Sculpher, George W. Torrance, Bernie J. O’Brien, and Greg L. Stoddart.
Oxford University Press, 2005, $55/£29.50, 379 pages.
Reviewed by Kevin D. Frick

This book is an excellent addition to any collection on cost-effectiveness methods. It describes and gives usable examples of such methods.

The first edition was published in the mid-1980s; this third edition reflects new techniques, the many different recommendations for performing cost-effectiveness analyses, and recommendations for formatting descriptions of cost-effectiveness analysis results.

A key feature is the description of cost-effectiveness analyses conducted using either patient level data (such as analyses that are conducted alongside randomized trials) or decision analytic modelling. The authors highlight the strengths and weaknesses of both types of studies and make clear the challenges that an analyst will face in either type of study.

This book provides a balanced view of what economic evaluation may provide to enhance healthcare resource allocation.