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Technical efficiency is the relationship between inputs (costs) and outputs (in health, quality-adjusted life-years [QALYs]). Interventions that provide more QALYs for the same or fewer resources are more efficient. Technical efficiency is assessed using cost minimization, cost-effectiveness, and cost-utility analysis. Allocative efficiency recognizes that health is not the only goal that society wishes to pursue, so competing goals must be weighted and then related to costs. This is typically done through cost-benefit analysis.

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