National Centre for Pharmacoeconomics

National Centre for

NCPE Ireland

Absolute risk

The probability of an event or outcome occurring in a defined population over a specified time period

Absolute risk reduction

A measure of treatment effect that compares the decrease in risk in the control group with that of a treatment group i.e. Pc – Pt

Adverse event

An undesirable effect of a health technology

Base Case

Analysis conducted using the set of preferred methods most appropriate for the decision-maker

Bayesian Method

A branch of statistics that uses prior information based on subjective opinion and objective evidence, such as the results of previous research, for estimation and inference


Bias is any distorting influence that makes the results of a study an inaccurate reflection of the true situation


When patients, investigators, researchers and/or assessors are kept unaware of the allocation of treatments (investigational agent or control) to participants in a study

Budget Impact Analysis

Estimates the financial consequences of adoption and diffusion of a new health-care intervention within a specific health-care setting or system context given inevitable resource constraints.

Clinical outcome

An outcome of major clinical importance that is defined on the basis of the disease being studied (e.g. fracture in osteoporosis, relapse rates).

Clinical significance

A conclusion that an intervention has an effect that is of practical meaning to patients and health care providers. Effects identified as statistically significant are not always clinically significant, because the effect is small or the outcome is not important.