Economic Evaluation

Our Unit has conducted a range of economic evaluations, and is part of the Health Technology Assessment and Research Support Panel supporting evaluations for the Medical Services Advisory Committee (MSAC) to inform decisions about listing of new Medicare items.

Economic Evaluation


Economic evaluation is closely related to health economics. Economic evaluation generates evidence-based information, mainly through cost-effectiveness analysis or cost-benefit analysis, to assist and improve decision making of allocating health care resources. All public health decisions have resource use implications and it is critical to consider these when making decisions.

Our Unit has conducted a range of economic evaluations on randomised control trials, registries and cohort studies. We have also evaluated the population health and health care cost implications of interventions that aim to prevent disease by addressing common lifestyle risk factors, such as smoking, alcohol misuse, poor diet and physical inactivity. In addition, we also provide methodological research to improve economic evaluations across a range of areas.

Health Technology Assessment


Health Technology Assessment (HTA) involves undertaking an assessment of effectiveness and cost-effectiveness to inform health care funding decisions. New technologies such as pharmaceuticals, medical or surgical procedures, prostheses, devices, screening and diagnostic tests can be evaluated. The aim of HTA is to provide information to decision makers to enable them to make decisions about costs, benefits and the value of funding health technologies.

The Health Economics Unit has previous experience providing HTA to the National Institute for Health and Care Excellence (NICE) in the UK and the Pharmaceutical Benefits Scheme (PBS) and the Medical Benefits Scheme (MBS) in Australia. The Unit currently provides assessment of medical services for the Department of Health. Once assessment is completed it is available on the Department of Health website.

The leader of the HTA research area is Associate Professor Kim Dalziel. For any queries, please contact Michelle Tew.

Current and Recent Projects

Improving cost-effectiveness analysis of childhood vaccines
General Practice Optimising Structured Monitoring to Improve Clinical outcomes in Type 2 Diabetes: GP-OSMOTIC T2D.
Developing an Australian-first recovery model for parents in Victorian mental health and family services.
MUMsize: Association between maternal size and outcomes for caesarean section: a multicentre, prospective observational study.

Health System Research

Prostheses Benefit Setting Framework

Developing statistics to track out-of-pocket costs in Australia

Selected Publications

Economic Evaluation

TRAN-DUY A., Moghadam M.G., … CLARKE, P.M., …,  Dutch National POET Collaboration (2018). An Economic Evaluation of Stopping versus Continuing TNF‐Inhibitor Treatment in Rheumatoid Arthritis Patients in Remission or Low Disease Activity: results from the POET randomized trial. Arthritis & Rheumatology, 70, 1557–1564.

HUANG, L., DALZIEL, K. M., Schilling, C., Celermajer, D. S., McNeil, J. J., Winlaw, D., ... & Wheaton, G. R. (2017). Hospital costs and cost implications of co-morbid conditions for patients with single ventricle in the period through to Fontan completion. International journal of cardiology, 240, 178-182.

Dennis, A. T., Lamb, K. E., Story, D., TEW, M., DALZIEL, K., CLARKE, P., . . . Casalaz, D. (2017). Associations between maternal size and health outcomes for women undergoing caesarean section: a multicentre prospective observational study (The MUM SIZE Study). BMJ Open, 7(6) :e015630. doi:10.1136/bmjopen-2016-015630

Wentworth, J. M., DALZIEL, K. M., O'Brien, P. E., Burton, P., Shaba, F., CLARKE, P. M., . . . Brown, W. A. (2017). Cost-effectiveness of gastric band surgery for overweight but not obese adults with type 2 diabetes in the US. Journal of Diabetes and its Complications, 31(7), 1139-1144. doi:10.1016/j.jdiacomp.2017.04.009

Ong, J. J., Fairley, C. K., Carroll, S., Walker, S., Chen, M., Read, T., ... & CLARKE, P. (2016). Cost-effectiveness of screening for anal cancer using regular digital ano-rectal examinations in men who have sex with men living with HIVJournal of the International AIDS Society, 19(1).

Johnson, D. W., Pascoe, E. M., Badve, S. V., DALZIEL, K., Cass, A., CLARKE, P., ... & Perkovic, V. (2015). A randomized, placebo-controlled trial of pentoxifylline on erythropoiesis-stimulating agent hyporesponsiveness in anemic patients with CKD: the Handling Erythropoietin Resistance With Oxpentifylline (HERO) trial. American Journal of Kidney Diseases, 65(1), 49-57.

DALZIEL, K., Dawe, S., Harnett, P. H., & Segal, L. (2015). Cost‐Effectiveness Analysis of the Parents under Pressure Programme for Methadone‐Maintained Parents. Child Abuse Review, 24(5), 317-331.

Blakely, T., COBIAC, LJ., Cleghorn, CL., Pearson, AL., van der Deen, FS., Kvizhinadze, G., ... & Wilson, N. (2015). Health, health inequality, and cost impacts of annual increases in tobacco tax: Multistate life table modeling in New Zealand. PLoS Med, 12(7), e1001856.

Farmer, AJ., Stevens, R., Hirst, J., LUNG, T., Oke, J., CLARKE, P., Glasziou, P., Neil, A., Dunger, D., Colhoun, HM., Pugh, C., Wong, G., Perera, R., & Shine, B. (2014). Optimal strategies for identifying kidney disease in diabetes: properties of screening tests, progression of renal dysfunction and impact of treatment - systematic review and modelling of progression and cost-effectiveness.Health Technology Assessment, 18(14).

Brinn, M., DALZIEL, K., Carson, K., Esterman, A., & Smith, B. (2013). Cost-effectiveness of an inpatient smoking cessation intervention for patients with tobacco related illness (STOP trial): A multi-centre RCT. Respirology, 18(16-16).

Health Technology Assessment

Segal, L., DALZIEL, K., & Mortimer, D. (2010). Fixing the game: are between‐silo differences in funding arrangements handicapping some interventions and giving others a head‐start? Health Economics, 19(4), 449-465.

DALZIEL, K., Round, A., Stein, K., Garside, R., Castelnuovo, E., & Payne, L. (2005). Do the findings of case series studies vary significantly according to methodological characteristics? Health Technology Assessment, 9(2), 1-146.

DALZIEL, K.., Round, A., Stein, K., Garside, R., & Price, A. (2004). Effectiveness and cost-effectiveness of imatinib for first-line treatment of chronic myeloid leukaemia in chronic phase: a systematic review and economic analysisHealth Technology Assessment, 8(28), 1-120.