Policy makers, health administrators, and practitioners are under pressure to justify resource allocation decisions through an analysis of need, value, and choice. Economic evaluations are increasingly being used to assess the value of health programmes and services. A search of three literature databases revealed that whereas assessments of outcomes and effectiveness are common in the rehabilitation disciplines, comparatively few studies attempt to link costs with outcomes. The purpose of this paper is to familiarize practitioners with the basic concepts and methods used to conduct economic evaluations by describing the different types of analysis, and critiquing research publications to illustrate how this approach has been used to assess the value of various domains of health service relevant to most occupational therapists. By participating in outcomes research to link the costs and consequences of services, occupational therapists will be better able to demonstrate the value of their contribution to the health of Canadians. It is hoped that this paper will stimulate evaluative efforts and enhance the practice of evidence-based decision making in resource allocations.