Health economics focuses on measuring and valuing the outcomes of healthcare interventions. Outcomes research comprises a set of scientific disciplines that evaluate the effect of healthcare interventions on patients.

Health economics and outcomes research (HEOR) is the confluence of 2 fields that work together to provide powerful data and insights for healthcare decision makers. HEOR is a function within a pharmaceutical or life science company that is tasked with generating evidence of the value of a new drug or other intervention for reimbursement and healthcare payers.

HEOR establishes and measures the link between treatment and actual outcomes and therefore provides evidence-based guidance on how to improve care.

It takes a broad view of the health outcomes of intervention including not only clinical trial data and clinical outcomes but also financial considerations and less tangible measures such as quality of life and satisfaction as reported by the patients in surveys or gleaned from electronic health records.