Chapter 1 Flashcards
What is pharmacoeconomics?
Description and analysis of drug therapy to health care systems and to society. It identifies, measures and compares the costs and consequences of pharmaceutical products or services.
Why is pharmacoeconomics important?
It attempts to find whether the added benefit of an intervention is worth the added cost of that benefit.
How is pharmacoeconomics related to other disciplines?
Pecon is useful for understanding the supply and demand of healthcare resources and is used by insurance companies for formulary decisions.
Describe the amount the U.S. spent on health care and how it related to other sources of GDP
$2.7 trillion on health in 2010 (about 17% of the GDP) 12% of that was on medications.
Cost minimization definition and advantages/disadvantages
Used when outcomes of an intervention (or medication
) are equal. Only cost matters because outcomes are the same!
Advantage: Simplest type of analysis to perform.
Disadvantage: Cannot be used when outcome are different.
Examples of Cost minimization
Brand Vs. Generic or 2 generics rated equivalent by the FDA
Cost effectiveness definition and advantages/disadvantages
Measure outcomes in natural units (mmHg, cholesterol levels, symptom free days etc.)
Advantages: Outcomes are easier to quantify compared to CUA and CBA and clinicians are familiar with these outcomes because they are frequently used in practice.
Disadvantage: Programs with different outcomes cannot be compared.
Examples of cost effectiveness analysis
One second generation antihistamine vs another seconds generation antihistamine
Definition of cost utility analysis and advantages/disadvantages
CUA measures outcomes based on years of life that are adjusted by utility (quality) weight. 0 is dead, 1 is perfect health.
Advantages: CUA incorporates both outcomes and mortality into one unit of measurement.
Disadvantage: There is no agreement on how to measure, and it is more of a rough estimate.
Examples of cost utility analysis
Anytime you see a change in quality of life CUA is the go to
Definition of cost benefit analysis and advantages/disadvantages
Measures both costs and benefits in monetary terms.
Advantages: We can determine whether the benefits of an intervention exceeds the cost of implementation. We can compare multiple programs with similar or unrelated outcomes.
Disadvantage: If one knows how much extra is costs to obtain the added outcomes, it becomes a judgement call as tho whether the added cost was worth the added benefit. Also, it is difficult to place a monetary value on the outcomes.
Cost consequence analysis
If only a list of costs and a list of various outcomes are presented, with no direct calculation or comparisons it is called cost consequence.
Cost of illness
Determines the total economic burden (includes prevention, treatment, losses etc.) of a particular disease on society. Includes both direct and indirect medical costs.
