The e-learning tool is aimed at any committee member involved in evidence review for the production of NICE guidance. As a NICE committee member, you need to understand cost effectiveness and the methodology adopted by NICE to evaluate economic evidence in order to contribute to committee meetings and fulfil your role effectively.


The aim of this tool is to introduce health economics in relation to NICE guideline development and examine the economic evaluation methodology used to establish cost effectiveness in healthcare. The tool allows you to apply your knowledge in practical examples to aid your learning.

Learning objectives

On completion of this tool learners should be able to:

  • describe the role of health economics within NICE guideline development
  • define and explain a Quality Adjusted Life Year (QALY)
  • define an Incremental Cost Effectiveness Ratio (ICER) and its application in health economics
  • explain how the cost effectiveness threshold is used to determine cost effectiveness
  • apply new knowledge to a worked example.

You may have already completed the Systematic review and GRADE methodology e-learning tools and have an understanding of the methods NICE uses when assessing clinical evidence. This health economics tool extends the examples provided in these modules to show how clinical evidence is incorporated into economic analysis.