Human life has traditionally been regarded as priceless. Therefore, no cost should be spared if a life can be saved. However, life-saving methods have now been developed that may well be beyond the capacity of society to pay for them. Perhaps coronary artery bypass surgery and renal transplantation cost more for society as a whole than society is willing to purchase. This book, using the methods of decision theory and cost-benefit analysis aims to clarify thinking rather than to be merely critical. The first part, background and general principles, introduces the methods of conditional probability, decision trees, and economic analysis. A second section, entitled Surgical Innovation, shows historically that surgical procedures were devised in the past on the basis of intuition and insight of singular individuals. Distinguished foreign visitors to this country had an enormous impact on surgical practice. For example, Arbuthnot Lane, in 1909, explained an elaborate pathology of abdominal bands and adhesions. Symptoms produced by these included headache, lassitude, mental distress, poor temper control, and diminution of libido. These, caused by autointoxication, could be relieved by lysis of adhesions and ileosigmoidostomy, with resection of all the colon proximal to this anasto¬ mosis. In surgery, before 1945, the concept of control in evaluation of methods seemed totally unknown to surgeons. In modern surgery, advances have been made in experimental design of clinical investigations, so that review of surgical innovations, al¬ though not perfect, is vastly improved. A third section of this book assesses risks and benefits of established proce¬ dures by decision analysis. For exam¬ ple, elective inguinal herniorrhaphy is critically assessed, as is life expectancy after cholecystectomy for silent gall stones and after hysterectomy for uterine dysfunction. Surprisingly, al¬ though the indications for inguinal herniorrhaphy are generally agreed on, the analysis in this volume casts doubt on the life-saving efficacy of the opera¬ tion as performed in the elderly. Wisely, the authors suggest that the unchallenged status of the operation is based on its effectiveness in improving quality of life, rather than the quantity of survival of the patient. The results of analysis of this operation show the difficulties of cost-benefit analysis in surgical decision-making. The fourth section focuses on costly procedures that have appeared recently on the medical scene. The data show, in general, that coronary artery bypass surgery is not particularly efficient in the use of scarce health resource funds. An exception to this generalization might be a young man with a strong heart with severe angina who under¬ goes this form of surgery. An estimate is made of the premium that might be paid each year by American men to