We strive to practise evidence based medicine. However, much of the 'evidence' is only of efficacy (drawn directly from studies), rather than of effectiveness and cost-effectiveness. Because they take into account 'real-world' considerations, including of efficiency and affordability, decision making in healthcare should ideally be based on evidence of effectiveness and cost-effectiveness.

In this session, Prof Danny Liew will provide an introduction to the principles of health economics, specifically in the area of health technology assessment, and how cost-effectiveness analyses are undertaken. Key limitations will also be discussed. Examples from the area of diabetes will be used.