What does the term "cost utility analysis" refer to?

Cost utility analysis is a specific form of economic evaluation used to assess the value of medical interventions by comparing their costs to the health outcomes they produce. This method typically involves measuring outcomes in terms of utility, with common metrics like quality-adjusted life years (QALYs).

In particular, cost utility analysis allows healthcare decision-makers to evaluate different treatment options not just by their monetary costs, but by how effective they are in improving patients' health and quality of life. This holistic approach is crucial in informing healthcare policy, allocation of resources, and clinical decision-making, ensuring that the focus remains on both economic viability and patient-centered outcomes.

The other options do not fully capture the essence of cost utility analysis. While comparing costs and analyzing operational efficiency are important in other contexts, they do not emphasize the balance between costs and the value derived from patient health outcomes—the core principle of cost utility analysis.