Abstract
This paper describes the major driving forces in cost-effectiveness, as well as some of the more controversial methodologic issues related to evaluation of the cost-effectiveness of individual technologies. First, 10 challenges facing health care providers and manufacturers are described. Then outcomes research, and its role in helping providers and manufacturers meet these challenges, are discussed. Methodological issues related to evaluation of the health and cost impacts of medical technologies are addressed. Cost-effectiveness analyses will be critical to rational allocation of resources by manufacturers, providers, and payers.
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