Pharmacy Curriculum Outcomes Assessment (PCOA) Practice Exam

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Cost-effectiveness analysis is a method for assessing:

  1. Financial viability of interventions

  2. Gains in health relative to costs

  3. Direct and indirect costs only

  4. Benefit to cost ratio

The correct answer is: Gains in health relative to costs

Cost-effectiveness analysis is a method used to assess the value of interventions by comparing the costs of implementing the intervention to the gains in health that result from it. This is different from other methods such as cost-benefit analysis, where the benefits are compared to the costs. Options A, C, and D are incorrect because cost-effectiveness analysis takes into account both the financial viability of interventions and the ratio of costs to benefits, rather than just one or the other. Additionally, cost-effectiveness analysis considers both direct and indirect costs, whereas option C suggests that only these types of costs are taken into consideration.

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