Decision Analytic Modeling in Health Economics

Decision analytic modeling is a systematic framework for comparing health interventions by integrating evidence on probabilities, outcomes, costs, and patient preferences into a quantitative model. Developed by Pauker and Kassirer in 1975, decision analysis structures clinical uncertainty and economic trade-offs, enabling transparent comparison of treatment options and identification of optimal strategies. Used in health technology assessment, clinical practice guideline development, and resource allocation decisions.