Intro to pharmacoeconomics Flashcards
What is pharmacoeconomics?
- Description and analysis of costs and consequences of pharmaceuticals and related services
- Process of identifying, measuring, and comparing the costs, risks, and benefits of programs, services, or therapies
- Determining outcomes from perspectives of pts, health care system, or society
Why is pharmacoeconomics important?
- Healthcare costs increasing but healthcare outcomes declining (in US)
- Drugs are expensive
- Trade off considerations on how to spend resources
What is classifying costs?
Calculated to estimate the resources used in production of an outcome
What are the 4 types of classifying costs?
- Direct medical costs
- Direct non-medical costs
- Indirect costs
- Intangible costs
What is direct medical cost?
- Medical costs for providing tx
- Ex. med cost, physician visits
What is direct non-medical cost?
- Costs to pt/family directly associated w tx, but not medical in nature
- Ex. cost of transpo to clinic, babysitter, etc
What is indirect cost?
- Costs that result from loss of productivity bc illness or death
- Do not involve transfer of money
- Ex. missed work or school days
What is intangible cost?
- Costs of pain, suffering, anxiety, or fatigue due to illness or tx
- Difficult to measure and assign value
What is cost perspective?
Describes whose costs are relevant based on purpose of pharmacoeconomic study
What are the types of perspective?
- Pt
- Institution
- Payer
- Society
What are the 4 types of pharmacoeconomic analyses?
- Cost-minimization analysis
- Cost-benefit analysis
- Cost-effectivenes analysis
- Cost-utility analysis
What is cost-minimization analysis?
- Used to compare costs of interventions w equivalent clinical outcomes
- Ex. generic v brand
What is the measurement unit of CMA?
Dollars
What is the outcome measurement unit of CMA?
- Not measured
- Assumed to be equivalent
What are the advantages of CMA?
- Simplicity
- No assessment of outcome
What are the disadvantages of CMA?
- ONLY useful when outcomes are equal
What is cost benefit analysis (CBA)?
- Measures costs of interventions and outcomes in monetary units
- Determines which intervention provides best monetary benefit
- Must assign monetary outcome to clinical endpoints
What is the cost measurement unit of CBA?
Dollars
What is the outcome measurement unit of CBA?
Monetary unit
What is the advantage of CBA?
Allows comparison of interventions with different outcomes
What is disadvantage of CBA?
Requires assigning monetary value to pain, suffering, life
What is cost effectiveness analysis (CEA)?
- Measures outcomes in natural health units (ex. Lives saved)
- Determines which intervention achieves a given obj at lowest cost
- Most common type of analysis
In a CEA, how do we know if the new tx cost effective relative to comparator (standard) tx?
