[SOURCE: York Health Economics Consortium (2016) Net Monetary Benefit. York Health Economics Consortium. (The website can be accessed here)]
Net monetary benefit (NMB) is a summary statistic that represents the value of an intervention in monetary terms when a willingness to pay (WTP) threshold for a unit of benefit (e.g. a measure of health outcome or quality adjusted life year , QALY) is known. The use of NMB scales both health outcomes and use of resources to costs, with the result that comparisons without the use of ratios (such as in incremental cost effectiveness ratio , ICER). NMB is calculated as
. Incremental NMB measures the difference in NMB between alternative interventions. A positive incremental NMB indicates that the intervention is cost-effective compared with the alterative at the given willingness-to-pay threshold. In this case, the cost to derive the benefit is less than the maximum amount that the decision-maker would be willing to pay for this benefit.
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