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Cost-Reasonableness Analysis

Meaning

In the context of clinical practice and health economics, a Cost-Reasonableness Analysis is a systematic evaluation to determine if the financial expenditure for a specific diagnostic test or therapeutic intervention is justifiable relative to its clinical benefit and efficacy. This analysis moves beyond mere cost comparison to assess the value proposition in terms of improved patient outcomes, risk reduction, and quality of life. Clinicians and health plans utilize this scrutiny to ensure responsible resource allocation, especially for novel or expensive longevity protocols.