Lec 25 - Pharmacoeconomics Flashcards
Economics
study of production, distribution, and consumption of goods and services
Supply trend
price paid by buyers for product/service
Law of Supply
as price for product/service increases, producers will increase supply in the market
Supply affected by…
- Technological advance
- Cost of resources
- # of sellers in market (important)
- Price of related goods
- Producer preference and expectations
Demand
consumer interest in purchasing product/service
Law of Demand
as price of product/service increases, demand falls
Demand affected by…
- Income of consumers (imp)
- Price of related goods
- # of consumers in the market (imp)
- Consumer preferences and expectations
Health Economics
study of how people (pt, healthcare officials, gov’t) allocate scarce resources to promote, maintain and improve health
Why is Health Economics unique?
- Variety of plans and conditions
– variations in products/services and quality - high barrier to entry/exit
- inelastic demand
– constant
What does the ECHO Model stand for?
E = Economic
C = Clinical
H/O = Humanistic Outcomes
Economic outcomes
- Direct costs
- Indirect costs
- Intangile costs
Clinical Outcomes
- Result of medications or interventions on medical condition
Humanistic Outcomes
- Impact a medical condition or treatment on pt quality of life/daily functioning
Pharmacoeconomics
study of economic decision making involving efficient utilization of pharmaceuticals
What is considered in Pharmacoeconomics?
Limited resources of healthcare payers and society
What is Pharmacoeconomics (PE) used for?
To measure and compare cost of treatment options AND associated outcomes
Importance of Pharmacoeconomics
- High cost of healthcare and medications
- try to determine which services/products are most valued in comparison of their price - Cost Control
- try to find economical ways to mitigate these rising costs
Cost-Minimization Analysis (CMA)
Type of study used in PE
- simplets form of PE analysis
- outcomes assumed to be equivalent
– e.g. comparing generics with the same indication
- only COST compared
Cost-Effectiveness Analysis (CEA)
Type of study used in PE
- measures outocmes in natural units
– Ex: cholesterol levels, BP
- assess COST and OUTCOMES
– compares new drug vs. current therapy
Cost-Benefit Analysis (CBA)
Type of study in PE
- considers COST and BENEFIT in MONETARY terms
– does the subject provide more benefit than cost?
- Disadv: challenging to put collar value on health otucomes
Cost-Utility Analysis (CUA)
Type of stuyd in PE
- beyond measuring effectiveness and assess quality of life extended
– Quality over quantity
– 1.0 = perfect health
– 0.0 = death
ISPOR
- International Society for Pharmacoeconomics & Outcomes Research
- multistakeholder, nonprofit org
- GOAL: improve healthcare decision making via info from RESEARCH
HEOR
- Health Economics & Outcomes Research
- assess and provide data to support health care decision making
Top 10 Trends in HEOR (top 5)
- Real World evidence
a. Electronic health records (EHR
b. Rx drug claims
c. Health care/medical claims - Value assessment
a. How much does it cost?
b. Normal supply/demand does not apply when deciding pricing
i. Lack of transparency
ii. Patients differ
iii. Insurance is a factor - Health equity
- Healthcare financing
- Patient engagment
Top 10 Trends in HEOR (top 6-10)
- Drug and healthcare pricing
- Public health
- Health technology assessment
- Health data
- Artificial intelligence
