introduction of PE Flashcards
Pharmacoeconomics DEFINITION
the description and analysis of the costs of drug therapy to health care systems and society
Pharmacoeconomic research identifies, measures, and compares the costs (i.e., resources consumed) and consequences (i.e., clinical, economic, humanistic) of pharmaceutical products and services.
Pharmacoeconomic research methods include.
* cost- minimization
* cost-effectiveness
* cost–benefit
* cost-of-illness
* cost-utility
* cost-consequences
* decision analysis
* quality-of-life
* other humanistic assessments.
role of pharmacist?
Pharmacists must become the key players in ensuring that drug therapy and related pharmacy services are not only safe and effective but also provide real value in both economic and humanistic terms.
how to indentify PE reseach?
If the research involves economic and clinical outcome evaluations and comparisons of pharmacy products or services, it can be termed a pharmacoeconomic study
▪ There are four basic types of pharmacoeconomic studies
Cost-minimization Analysis (CMA)
2. Cost-effectiveness Analysis (CEA)
3. Cost-utility Analysis (CUA)
4. Cost-benefit Analysis (CBA)
Each method measures costs in dollars, but they differ regarding how
health outcomes are measured and compared
- COST-MINIMIZATION ANALYSIS
example?
two or more interventions are evaluated and demonstrated or assumed to be equivalent in terms of a given outcome or consequence, costs associated with each intervention may be evaluated and compared
evaluation of two generically equivalent drugs in which the outcome has been proven to be equal
COST-BENEFIT ANALYSIS
example
Used to improve the decision-making process in allocation of funds to healthcare programs
▪ Identifies all of the benefits that accrue from the program or intervention and converting them into dollars in the year in which they will occur
cost-benefit of having a neonatal care program vs a cardiac rehabilitation program.
cost effective analysis
A technique designed to assist a decision-maker in identifying a preferred choice among possible alternatives.
aid in the selection of a course of action from various alternative approaches
Applied to health matters when the program’s inputs can be readily measured in dollars, but the program’s outputs are more appropriately stated in terms of health improvement created
- COST-UTILITY ANALYSIS
t’s an economic tool in which the intervention consequence is measured in terms of quantity and quality of life.
▪ Example: surgery vs chemotherapy
Cost-benefit
Cost-effectiveness
Cost-minimization
Cost-utility
outcomes?
cost benefit: dollor
cost effectiveness: natural units (life-years gained, mg/dL blood glucose, mmHg blood pressure)
cost minimization: assume to be equivalent in comparative groups
Cost-utility: quality-adjusted life-year or other utilities
▪ COST-OF-ILLNESS EVALUATION
evaluations of new therapies
he humanistic impact of disease and the resources used in treating a condition prior to the discovery of a new intervention
▪ Need to establish a baseline for comparison
▪ COST-CONSEQUENCE ANALYSIS
Provides the most comprehensive presentation of information describing the value of an intervention
▪ More readily understandable and applied by healthcare decision-makers
▪ Analysis comprises a listing of all relevant costs and outcomes of drug therapy or healthcare intervention, including direct medical & nonmedical costs, indirect costs, clinical outcomes, utility impacts, and quality-of-life impacts.
drug development in PE
It has been estimated that it takes $802 million and 14 years to bring a new drug to the market
Pharmacoeconomic data are becoming increasingly important to practitioners making drug formulary decisions; having these data as soon as possible after FDA approval is important.
▪ Accordingly, discussion and planning for pharmacoeconomic evaluation should begin during the early stages of drug development.
Motivation for Economic Evaluation of Pharmaceuticals
Incredible number of unique pharmaceutical products and indications for those products
▪ Innovative but expensive pharmaceutical treatments
▪ National demographic and other trends suggest further increases
▪ Use of prescription drugs
▪ Drug expenditures on pharmaceuticals.
▪ Pharmacoeconomic data often required by foreign regulators, managed care organizations (AMCP template), and others
