Probability Distributions for Effectiveness Parameters

When we construct a decision model for cost effectiveness analysis, we are representing the flow of patients through a clinical pathway. As patients flow through a pathway, represented by health states in our model, they will experience clinical events. Clinical events are measured in real life by conducting clinical research or audit and are reported as health outcomes. It is these health outcomes that are represented in our model by effectiveness parameters. In this chapter we consider how these parameters can be incorporated into a model in a manner that captures the uncertainty in estimated effectiveness.