The healthcare industry is growing rapidly. Today the big question isn’t only “Does a treatment work?” It’s also “Is it worth it…for patients, doctors, and the whole healthcare system?”
If you’ve ever wondered things like:
- How do insurance companies decide which drugs to cover?
- Why do some treatments get approved while others don’t?
- How do we know if a new therapy truly improves patients’ lives?
…then HEOR (Health Economics and Outcomes Research) is the answer.
In this blog, we’ll walk through types of HEOR studies, what they’re used for, and how they support evidence-based medicine (EBM).
What is HEOR?
Health Economics and Outcomes Research (HEOR) evaluates the clinical, economic, and humanistic impact of healthcare interventions. While clinical trials tell us how well a treatment works under ideal, controlled conditions, HEOR looks at how that treatment performs in the real world with real patients, real costs, and real-life challenges.
To put it simply:
- Clinical trials ask: “Does it work?”
- HEOR asks: “Does it work in real life, for which patients, at what cost, and is it truly worth it?”
HEOR plays a major role in shaping:
- Coverage and reimbursement decisions
- Pricing strategies for new drugs and therapies
- Clinical guidelines and treatment recommendations
Ultimately, HEOR helps ensure healthcare decisions are clinically sound, patient-centered, and financially sustainable both for individuals and the system as a whole.
Does this field seem to interest you? Why don’t you try to pursue this course? Academically has a job-ready HEOR Program, that readies you for the real world.
Types of HEOR Studies
There are basically 10 types of HEOR.
- Cost-Effectiveness Analysis (CEA): Compares costs vs health outcomes to find the best value.
- Cost-Utility Analysis (CUA): Measures both the cost and quality-of-life benefits of a treatment, factoring in patient preferences.
- Cost-Benefit Analysis (CBA): Converts outcomes into monetary terms to see if the benefits outweigh the costs.
- Cost-Minimization Analysis (CMA): Focuses on the cheapest option when treatments are proven equally effective.
- Budget Impact Analysis (BIA): Evaluates the financial impact of adopting a new therapy within a healthcare budget.
- Comparative Effectiveness Research (CER): Compares how well treatments perform in real-world settings.
- Real-World Evidence (RWE) Studies: Uses real-world data to assess effectiveness and safety outside clinical trials.
- Patient-Reported Outcomes (PRO) Studies: Captures patients’ perspectives on symptoms, well-being, and daily functioning.
- Health Technology Assessment (HTA): Evaluates clinical, economic, and ethical implications of new healthcare technologies.
- Economic Modeling Studies: Uses simulations to predict long-term costs and outcomes when trial data is limited.
Now that you know the 10 key types of HEOR studies, let’s take a closer look at each one. We’ll see the real-world problems they address, how they help decision-makers, and examples of their use in healthcare.
| HEOR Type | Problem | Solution |
| Cost-Effectiveness Analysis (CEA) | Hospital must choose between two treatments with different costs | Compares costs relative to health outcomes (e.g., QALYs) to identify the best value |
| Cost-Utility Analysis (CUA) | Chronic disease treatment impacts daily life; one therapy is more expensive | Measures both cost and quality-adjusted life benefits, factoring in patient preferences |
| Cost-Benefit Analysis (CBA) | Public health agency wants to justify a program financially | Converts outcomes into monetary terms to see if benefits outweigh costs |
| Cost-Minimization Analysis (CMA) | Two treatments are proven equally effective; hospital wants the cheapest option | Focuses on cost differences when outcomes are equivalent |
| Budget Impact Analysis (BIA) | Hospital wants to adopt a new therapy but is unsure of the budget impact | Estimates financial impact within a defined budget context |
| Comparative Effectiveness Research (CER) | Treatments exist but real-world performance is unclear | Compares real-world outcomes to determine which works best |
| Real-World Evidence (RWE) Studies | Clinical trial data may not reflect everyday patient experience | Uses data from registries, electronic health records, or claims to assess real-world effectiveness and safety |
| Patient-Reported Outcomes (PRO) Studies | Need to understand how treatments affect patients’ daily lives | Collects patients’ perspectives on symptoms, well-being, and functionality |
| Health Technology Assessment (HTA) | Governments/insurers must decide whether to fund new technology | Evaluates clinical, economic, ethical, and societal implications |
| Economic Modeling Studies | Long-term clinical trial data is unavailable; need to predict future costs and outcomes | Uses simulations to estimate long-term costs and health outcomes |
How HEOR Supports Evidence-Based Medicine
Evidence-based medicine integrates:
- Clinical research evidence
- Patient values and preferences
- Economic and resource considerations
HEOR strengthens EBM by:
- Identifying treatments that are clinically effective and cost-efficient
- Highlighting what patients truly value in their care
- Supporting policy and coverage decisions for sustainable healthcare
- Helping allocate resources efficiently and equitably
Role of HEOR in Evidence-Based Medicine
| HEOR Study Type | How it Supports EBM | Stakeholder Benefit |
| CEA | Identifies most cost-effective interventions | Payers, policymakers, hospitals |
| CUA | Assesses value considering quality of life | Clinicians, patients |
| CMA | Chooses least costly equivalent options | Healthcare systems |
| BIA | Predicts short- and medium-term budget impact | Insurers, hospitals |
| CBA | Justifies public health programs | Policymakers, health agencies |
| CER | Guides selection of most effective real-world treatment | Clinicians, guideline committees |
| HTA | Evaluates medical, economic, and ethical aspects | Governments, payers |
| RWE | Complements trial data with real-world insights | Regulators, researchers |
| PRO | Centers patient experience in decisions | Patients, providers |
| Economic Modeling | Predicts long-term impact of interventions | Payers, planners |
Final Thoughts
In healthcare, it’s not enough to know if a treatment works. The real question is: Does it help the right patients, in the right way, without wasting resources?
HEOR studies give us the answers. They show which treatments make the biggest difference in patients’ lives, how much they cost, and how they perform in the real world.
At its heart, HEOR is about making smarter choices, choices that improve health, respect patients’ needs, and use healthcare resources wisely. It reminds us that the best decisions are not just based on science, but also on value, practicality, and people’s real experiences.
If you have any questions or need guidance you can contact the experts at Academically. They will be happy to help you!