Intro To Pharmacoeconomics Flashcards
What is the Quadruple Aim of healthcare?
- Improving population health
- Reducing costs of care
- Enhancing patient experience
- Improving provider satisfaction
What is the difference between “fee-for-service” and “pay-for-performance”?
Fee-for-service: incentive to provide MORE services, but high volume ≠ better quality of care
Pay-for-performance: incentive for providers to deliver high quality care at lower costs
Define pharmacoeconomics
Analysis of COSTS & CONSEQUENCES of pharmaceutics and its effects on patients/health systems/society
What are the goals of pharmacoeconomics?
- To identify, measure and compare costs vs outcomes of pharmaceutical interventions
- To allocate health resources & that each patient gets the most suitable treatment
(Includes methods from statistics, clinical epidemiology, decision analysis, psychometrics)
What is the main reason pharmacoeconomics has arisen as a necessary area of study?
Rising competition for limited/diminishing health resources has created the need to appraise utilization.
Note: cheapest alternative ≠ best option!
What is the ECHO model in pharmacoeconomics?
Economic - direct/indirect/intangible costs vs medical outcomes
Clinical - medical events that occur from disease
Humanistic - consequences of disease/treatment on QoL
…Outcomes
What are direct medical costs? Provide examples
Costs from medical products/services for prevention, detection, and treatment.
Medication, supplies, labs, provider’s time, hospitalization
What are some direct non-medical costs?
Transportation, food, family care, home aids
What are some indirect costs?
Lost wages (from morbidity), lost costs from premature death (mortality)
Define incremental costs
Additional costs incurred from trying alternative treatment strategies
What are intangible costs? Provide examples
Costs of pain, grief, inconvenience and other nonfinancial outcomes of disease and medical care.
What are opportunity costs? Provide examples
Cost of forgoing the best alternative when making a choice between different options. TLDR: it represents the missed benefits that could have been obtained if resources (such as time, money, or effort) were used in an alternative way.
Ie. Missed opportunities, forgone revenue
Whose perspectives matter when assessing economic outcomes? (4) Which is considered the “best”?
Patient, provider, payer, society
Society considered “best”
What is Cost of Illness (COI)? How is it applied?
Estimates the total costs of a disease on a population
(Used as a baseline to compare the value of various treatments against the cost of the illness)
What is Cost-Minimization Analysis (CMI)? What is its application?
Find the least expensive cost alternative between therapeutically equivalent treatments
The least expensive agent is preferred [includes cost of drug preparation, administration and storage, etc]
