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[Music] welcome to this video on health economic evaluation were going to have a very broad look at what it is and introduce the four main types of economic evaluations so first of all why do we need health economic evaluations there are many effective and worthwhile health interventions or programs that can be used to improve the health of a population if we had a lot of money to spend we could use it for every beneficial health program the reality however is that we usually dont if we spend all the money we have on one intervention then we dont have any left for others this is called an opportunity cost because of this difficult decisions have to be made to ensure the limited amount of money is spent to achieve the most benefit health economic evaluation is a tool that helps with making those decisions it allows us to compare two or more health interventions on the basis of their costs and outcomes there are four main types of economic evaluations cost minimization cost effective