Cost-Effectiveness Analysis: A Component of Evidence-Based Education

Including cost-effectiveness data in the evaluation of programs is the next step in the evolution of evidence-based practice. Evidence-based practice is grounded in three complementary elements: best available evidence, professional judgment, and client values and context. To fully apply the cost-effectiveness data, school administrators will have to rely on all three of these elements. The function of cost-effectiveness data is to guide decisions about how limited financial resources should be spent to produce the best educational outcomes. To do so, it is necessary for decision makers to choose between options with known cost-effectiveness ratios while working within the budget constraints. In this article, I discuss some of the considerations that have to be addressed in the decision-making process and implications of including cost-effectiveness analyses in data-based decision making.