HaDSoc Week 8 Flashcards

1
Q

Why is it necessary to ration resources in healthcare?

A

Scarcity of resources - demand outstrips supply
Difficult decisions have to be made in order to sustain a publicly funded healthcare system

Planned expenditure for 2016/17 is 120.6 billion

By 2031 the number of over 75s is estimated to rise to 8.2m (currently 4.7 m)
60% of those aged over 65 have a long term condition
Increased incidence and prevalence of cancer

New drugs are expensive - e.g. Cancer therapies - broader range of people, less side effects - often dont cure but offer increased survival- also preventer drugs e.g. HIV

Resources could be used in many ways

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2
Q

What are the ethics regarding rationing?

A

Need to be clear and explicit about what we are trying to achieve and who benefits from the public expenditure

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3
Q

Describe the two types of rationing

A

Explicit rationing - based on defined rules of entitlement - who gets treatment, under what conditions - use of institutional procedures for the systematic allocation of resources in the healthcare system - decisions and reasons behind those decisions are explicit - technical processes - assessment of equity and efficiency - political processes - lay participation

Implicit rationing - care is limited, but neither the decisions nor the basis for those decisions are clearly expressed - allocation of resources without the reasons being explicit - can lead to inequities and discrimination, open to abuse, decisions based on perceptions of “social deservingness” instead of good evidence and clinical reasoning - doctors appear increasingly unwilling to do it although some still see merit in it given the complexity of medical care and individualised practise - more fine grained and sensitive way of doing things

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4
Q

What are the advantages and disadvantages of explicit rationing/priority-setting?

A
Advantages:
Transparent and accountable in theory 
Opportunity for debate - media etc.
More clearly evidence-based
More opportunities for equity in decision making

Disadvantages:
Very complex
Heterogeneity of patients and illnesses - treats them homogenously
Patient and professional hostility
Impact on clinical freedom - if want to prescribe something but can under the NHS
Some evidence of patient distress

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5
Q

What is NICE?

A

National institute for health and care excellence
Set up to enable evidence of clinical and cost effectiveness to be integrated to inform a national judgement on the value of a treatment(s) relative to alternative uses of resources

Provides guidance on whether treatments (new or existing) can be recommended for use in the NHS in England

In England they expect you to take their guidance into account but people also have the right to be involved in discussions and make informed decisions about their care

NICE is asked to appraise significant new drugs and devices to help make sure that effective and cost effective products are made available to patients quickly and to minimise variations in the availability of treatments
Once national guidance has been issued by NICE, it replaces local recommendations and promotes equal access for patients across the country

CCGs have started to put additional requirements for whether someone can have a treatment in place - in an effort to control their spending and thus protect their budget

NICE has particularly controversial role in relation to expensive treatments
If not approved, patients are effectively denied access to them (except for individual requests - exception not the norm)
If approved local NHS organisations may fund them (if clinically appropriate) - sometimes with adverse consequences for other priorities

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6
Q

What is health economics of value to doctors?

A

They are involved in decisions about resource allocation - on the NICE panel
Knowing about health economics helps them to contribute/learn from the evidence
Need to be able to explain to patients why they have been denied a treatment

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7
Q

What is meant by scarcity?

A

Need outstrips resources. Prioritisation is inevitable

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8
Q

What is meant by efficiency?

A

Getting the most out of limited resources

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9
Q

What is meant by equity?

A

The extent to which distribution of resources is fair

Each person with the same level of need receives the same care

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10
Q

What is meant by effectiveness?

A

The extent to which an intervention produces desired outcomes

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11
Q

What is meant by utility?

A

The value an individual places on a health state - does the clinical outcome have any value to the patient?

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12
Q

What is meant by opportunity cost?

A

Once you have used a resource in one way, you no longer have it to use in another way - can only spend the money once
The opportunity cost is the value of the next best alternative use of those resources
Cost is viewed as sacrifice rather than financial expenditure
Measured in benefits foregone
E.g. One course of IVF treatment has an opportunity cost of 1 heart bypass operation

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13
Q

What is technical efficiency ?

A

You are interested in the most efficient way of meeting a need e.g. Should antenatal care be community or hospital based?

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14
Q

What is allocative efficiency?

A

You are choosing between the many needs to be met e.g. Hip replacement or antenatal care

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15
Q

What is economic evaluation?

A

Comparison of resource implications and benefits of alternative ways of delivering healthcare
Can facilitate decisions so that they are more transparent and fair
Economic analysis compares the inputs (resources) and outputs (benefits and value attached to them) of alternative interventions - allows better decisions to be made about which interventions represent the best value for investment

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16
Q

How do you measure the costs of an intervention?

A

Identify, quantify and value the resources needed for an intervention
Categories of cost:
- Costs of the healthcare services
- Costs of the patient’s time
- Costs associated with care-giving
- Costs associated with illness
- Economic costs borne by the employers, other employees and the rest of society

17
Q

How do you measure the benefits of an intervention?

A

Harder to measure than costs
Improved (or maintained) health hard to value
Categories of benefits/consequences:
- Impact on health status (in terms of survival or quality of life or both)
- Savings in other healthcare resources (such as drugs, hospitalisations, procedures, etc.) if the patient’s health state is improved - need less procedures or drugs in the future
- improved productivity if patient, or family member, returns to work earlier- contribute to economy

18
Q

How can the costs and benefits of an intervention be compared?

A
Four types of economic evaluation:
1. Cost minimisation analysis
2. Cost effectiveness analysis
3. Cost benefit analysis
4. Cost utility analysis
All consider the costs but differ in the extent they attempt to measure and value consequences/benefits
19
Q

What is cost minimisation analysis?

A

Outcomes assumed to be equivalent
Focus is on the costs (only the inputs)
Not often relevant as outcomes rarely equivalent
E.g. If all hip prostheses improve outcomes equally, chose the cheapest one

20
Q

What is cost effectiveness analysis?

A

Used to compare drugs and interventions which have a common health outcome e.g. Reduction in blood pressure
Compared in terms of cost per unit outcome e.g. Cost per reduction of 5mm/Hg
If costs are higher for one treatment, but benefits are too, need to calculate how much extra benefit is obtained for the extra cost
Is the extra benefit worth the extra cost?

21
Q

What is cost benefit analysis?

A

All inputs and outputs valued in monetary terms
Can allow comparison with interventions outside healthcare e.g. Transport, education
Methodological difficulties e.g. Putting monetary value on non-monetary benefits such as lives saved
“Willingness to pay” often used, but this is also problematic (asking the patient how much they would be willing to pay for a procedure - concerns of over estimation because if values highly know likely to get it, also it is important to the individual so likely to value high)

22
Q

What is cost utility analysis?

A

Particular type of cost effectiveness analysis
Focuses on quality of health outcomes produced or foregone
Most frequently used is quality adjusted life year (QALY)
Interventions can be compared in cost per QALY terms

23
Q

What are QALYs, and how and why do we use them?

A

To use cost-effectiveness as a guide to decision-making, we need to compare the cost-effectiveness of different uses of resources
Need an effectiveness measure that can be used in a wide range of settings
Can only use life years gained when survival is the main outcome
QALYs are a composite of survival and quality of life - 1 year of perfect health is 1 QALY - this can be produced by 1 person having 10 years with a quality of life of 0.1 perfect health or 10 people having 1 year with a quality of life of 0.1 perfect health etc.

Quality of life is measure using a generic HR-QoL instrument: the EQ-5D

Work out QALYs gained by doing QALYs on treatment A-QALYs without treatment
Then do total cost of treatment A by cost per anum x years needed
Then Cost per QALYs gained is Total cost/ QALYs gained

Do the same for treatment B and then compare the the Cost per QALYs gained

A lower Cost per QALYs gained means the treatment is more cost effective - in other words youve got more benefit for the cost paid

24
Q

What are some of the alternatives to QALYs?

A

Health year equivalents (HYE)
Saved-young-life equivalents (SAVEs)
Disability adjusted life years (DALYs)

25
Q

How does NICE make its decisions?

A

Interventions below 20K per QALY will normally be approved
20-30K decisions will take account of :
- degree of uncertainty
- if change in HRQoL is adequately captured in the QALY - are there benefits that havent been considered - patients on the NICE panels, as well as clinicians, can help with this insight
- Innovation that adds demonstrable and distinctive benefits to captured in the QALY
Above 30K per QALY will need an increasingly stronger case

26
Q

What are some negatives surrounding NICE?

A

May be resented by patient groups - media
May be resented by pharmaceutical companies - issues with the methodology nice uses - they lose out
CCGs prioritise NICE-approved interventions, sometimes with unintended consequences - disjuncture between local need and what NICE deem to be important
Concerns about political interference

27
Q

What are some criticisms of QALYs?

A

Controversy about the values they embody - quantity and quality of life
Do not distribute resources according to need, but according to the benefits gained per unit of cost - need might not be the same
May disadvantage common conditions - quality of life wont vary that much
Technical problems with their calculations - lots of assumptions and modelling
May not embrace all dimensions of benefit - values expressed by experimental subjects may not be representative
Do not assess impact on carers or family - benefit to them

RCT evidence is not perfect:

  • comparison therapies may differ
  • length of follow-up - not long enough to see benefits
  • atypical care
  • atypical patients - not representative
  • limited generalisability
  • sample sizes - large enough, appropriately collected

-statistical models can address some some problems and areas of uncertainty