Economic evaluation is fundamental to both HTA and to decision making in healthcare. In this video, Professor Simon Dixon explains what economic evaluation is (and what it isn’t) and how this type of analysis can help decision makers to determine whether a new treatment is cost-effective. We will then be joined by Nick Latimer, a Senior Research Fellow in Health Economics and Decision Science, who explains why a generic measure of health is important for economic evaluation. Nick talks about QALYs (Quality Adjusted Life Years) and ICERs (Incremental Cost Effectiveness Ratios). These are units used to measure quality of life and cost-effectiveness.