Pharmacoeconomics

Pharmacoeconomics is the discipline that evaluates the costs and outcomes associated with pharmaceutical products and therapies to support efficient and rational healthcare decision-making. It compares the economic value of drugs and treatment options by analyzing both their costs and health benefits. Common pharmacoeconomic methods include cost-effectiveness analysis, cost–utility analysis, cost–benefit analysis, and budget impact analysis. Pharmacoeconomics helps policymakers, healthcare providers, and payers determine which medicines provide the greatest value for money, particularly in settings with limited resources. From a public health perspective, pharmacoeconomic evaluations support equitable access to essential medicines, guide reimbursement and pricing decisions, and promote rational drug use. By informing formulary management, treatment guidelines, and health technology assessments, pharmacoeconomics contributes to cost containment while maintaining quality care. Effective use of pharmacoeconomics strengthens healthcare system sustainability and improves population health outcomes.