This chapter focuses on economic analysis in healthcare, which evaluates costs and benefits of interventions to inform efficient resource allocation. It introduces the main types of economic evaluation: cost-minimisation, cost-effectiveness, cost-utility, and cost-benefit analyses, explaining their definitions, applications, and differences. Measures such as quality-adjusted life years (QALYs) and disability-adjusted life years (DALYs) are described as key outcomes in cost-utility studies. The chapter highlights the importance of perspective (e.g., societal, healthcare system, or patient) in determining which costs and benefits are included. Strengths of economic analysis include its relevance to policy-making, priority-setting, and justifying interventions within constrained budgets. Limitations include methodological challenges, uncertainty in measuring long-term outcomes, and the need for high-quality data. Practical examples from screening programmes, drug evaluations, and public health interventions illustrate how economic analysis shapes funding and access decisions. The chapter also addresses ethical considerations in balancing efficiency and equity. By integrating economic thinking with health outcomes research, the chapter emphasises the essential role of economic analysis in guiding sustainable healthcare systems. This chapter maps to syllabus section 3.3, which requires knowledge of health economics, cost-effectiveness, QALYs, and sensitivity analysis.