06 Sood Lecture 1 Flashcards
For economic consequences of health care interventions, what are Interventions?
Changes in costs (numerator of ICER). Changes in health status (denominator of ICER)
For economic consequences of health care interventions, what are Changes in Costs?
Health care resources (i.e. cost of flu vaccine production). Non-health care resources (i.e. spending money to go get a flu vaccine). Use of informal care giver time (i.e. family taking care of you). Use of patient time for treatment
For economic consequences of health care interventions, what are Changes in Health Status?
Intrinsic value. Economic value (changes in productivity or labor supply)
When costs are being measured, what is Societal Perspective?
Everyone in society matters. Includes patients or consumers. Includes firms, providers, hospitals, etc. Government and public programs
When costs are being measured, what is Insurer or Payer Perspective?
What matters is expenditures made by the payer
When costs are being measured, what is Patient Perspective?
What matters is expenditures made by the patient. Non-monetary costs such as time and inconvenience
What are Societal Perspectives like when considering something like Surgery?
Cost of surgeon time. Cost of patient time. Cost of medical supplies
What are Insurer or Payer Perspectives like when considering something like Surgery?
How much did the payer pay for the surgery. Might be different than costs
What are Patient Perspectives like like when considering something like Surgery?
How much did the patient pay for surgery. Patient time costs
What perspective should we use?
Always start with societal perspective as the reference case when doing a CEA. Include other perspectives depending on the problem and decision maker
What are Societal Perspectives like when considering something like “Should LA County provide free flu shots”?
How will it impact health care and non-health care costs for everyone in society
What are Government Perspectives like when considering something like “Should LA County provide free flu shots”?
How will it impact LA County budget
What are Payer Perspectives like when considering something like “Should LA County provide free flu shots”?
Will it increase or decrease covered health care costs
What are Patient Perspectives like when considering something like “Should LA County provide free flu shots”?
Will it reduce the burden of health care and non-health care costs for patients
What are Direct Costs?
Changes in resource use directly attributable to the implementation of the intervention
What are Indirect Costs?
Change in productivity and labor force participation due to health changes caused by the intervention
Why do most CEAs exclude indirect costs?
Indirect costs are captured in denominator as change in health. Can be reported separately
Do direct costs have to involve a monetary transaction?
No! What matters is change in resource use not whether someone was paid for it. Example about free lunch (free to me, but not from societal perspective. We have 5 fewer cows even though I didn’t pay for it)
Are all monetary transactions direct costs?
No! What matters is change in resource use not money changing hands
Should we report transfer costs separately?
Important for equity concerns: society does care about who wins and who loses (teacher gives me $5, thats fine. I give the teacher $5, thats a problem). These costs are important if you are not conducting analysis from societal perspective
Do transfers cause a change in behavior?
Increase in taxes for national health care means people will work less. Costs associated with such change in behavior is called “deadweight costs”. Deadweight costs should be included in numerator
Should we consider only short term costs directly attributable to the intervention?
No! Both short term and long term costs of the intervention need to be considered. For example, costs of mammography screening include costs of screening itself such as those of mammogram and physician time. And costs of follow up tests to confirm positive results and changes in treatment costs d/t identification of additional breast cancer cases
When looking at types of Direct Costs, what are some examples of Health Care Costs?
Costs of tests, drugs, supplies. Costs of health personnel. Cost of facilities
When looking at types of Direct Costs, what are some examples of Non-Health Care Costs?
Time costs of receiving intervention including travel and wait time. Time family members or others spend providing care. Travel costs, child care costs or other costs incurred because of the intervention