Promoting cost effective prescribing

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Abstract
Expensive drugs require the use of limited resources, which, once deployed are not available for other activities that may bring greater benefits for patients. When an expensive drug is shown to be cost effective, however, its use is justified by the additional benefits it brings. To use scarce resources efficiently the careful and explicit measurement of the value of what is given up (the opportunity cost) and the value of what is gained (for example, improvements in the length and quality of life) is essential. The measurement of cost alone or effectiveness alone will produce inefficiency as a rational health care system finances expensive alternatives to existing treatments only if these bring additional benefits commensurate with the cost.