Lecture 9 Economic evaluations of health promotion programs Flashcards

1
Q

What is an economic evaluation and what are two reasons to conduct one?

A

Do the results of an intervention warrant its implementation, compared with the results from other interventions that could have been implemented using the same resources

Reasons: 
Because resources (time, money) for health promotion are scarce
Whether or not you it is worth putting money into an intervention
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2
Q

What are the different types of economic evaluations?

A
  • Cost-effectiveness analysis
  • Cost-utility analysis
  • Cost-benefit analysis
  • Cost-minimisation analysis
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3
Q

Which five steps do you have to take when you are doing an economic evaluation?

A
  1. Identification of the perspective
  2. Identification of the alternatives
  3. Identification, measurement, and valuation of effects
  4. Identification, measurement and valuation of costs
  5. Statistical analysis
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4
Q

What is the ideal perspective when doing step 1 of an economic evaluation?

A

Societal perspective: All costs and consequences are taken into account irrespective of who pays or benefits from them

Above is the ideal situation, usually not the way day-to-day decisions are made.

Therefore look at other perspectives may also be relevant. For example, health care, employer, patient, etc.

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5
Q

What can be alternative interventions you can compare your own intervention to in step 2 of the economic evaluation?

A
  • Usual care
  • Best available alternative
  • No intervention
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6
Q

What are types of analysis to measure, identify and valuate effects in step 3 of an economic evaluation?

A

For example the:

  • Cost-effectiveness analysis
    • Measured in the same way as in the effect analysis
  • Cost-utility analysis
    • Measured in terms of utilities (e.g. QALYs/ DALYs)
  • Cost-benefit analysis
    • Converted to monetary values
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7
Q

What are QALY’s?

A

Quality Adjusted Life Years

  • Part of cost-utility analysis
  • Number of life years, adjusted for health status during those years
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8
Q

Name three ways to measure QALYs

A
  1. Measures health state (EQ-5D-3L)
    • Measurement tool: mobility, self-care, usual activities, pain/discomfort, anxiety/depression
  2. Calculate utility (Dutch value set)
    • EQ-5D scores –> utility
    • (11111 - 33333) –> (0-1)
  3. Calculate QALY
    • Number of life years * utility = QALY
    • Living 3 years w/ a mean utility of 0.7
    • 3 * 0.7 = 2.1
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9
Q

What are relevant costs categories when carrying out step 4 of the economic evaluation?

A
  • Healthcare costs
  • Patient costs (over the counter medication e.g. paracetamol)
  • Costs in other sectors
  • Healthcare costs in life years gained
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10
Q

Which costs are included in both the societal perspective and the healthcare perspectives. Which two categories of costs differ?

A

Societal perspective

  • Healthcare costs
  • Patient costs
  • Costs in other sectors
  • Healthcare costs in life-years gained

Healthcare perspective

  • Healthcare costs
  • Healthcare costs in life-years gained
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11
Q

How do you measure and estimate costs? Name the three steps.

A

Step 1. Measure resources consumed

  • How often did a person go to the GP
  • How many sick days
  • -> More useful than asking a person about their costs

Step 2. Collect unit price data

Step 3. Calculate costs
- Resources consumed * unit prices

KEEP IN MIND INFLATION –> because of this all units must be converted to the same reference year.

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12
Q

What are bottom-up and top-down intervention costs

A

Bottom up:
* Detailed data is collected regarding the quantity of resources consumed (step 1) as well as their unit prices (step 2). Subsequently, costs are calculated by multiplying them (step 3).

Top-down:
* Intervention costs are based on invoices, etc (step 1/2/3)

New interventions are harder to estimate (no price tags yet)

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13
Q

What are the three steps in a cost-effectiveness analysis (statistical analysis)

A
  1. calculate effect difference
  2. Calculate cost difference
  3. Calculate ICER
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14
Q

What is the Incremental cost-effectiveness ratio (ICER) and how do you calculate it? Give an interpretation.

A

Part of the cost-effectiveness analysis
Is the costs per unit of effect (gained)

Costs.intervention - costs.control Costs
———————————————— = ———- = ICER
Effect.intervention - Effect.control Effect

Interpretation:
X euro’s are needed to be invested in the intervention group in comparison to the control group to lose/gain a X unit of the outcome.

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15
Q

What is a cost-effectiveness plane

A

Incremental costs

NW: less effective, more costly (left top) = not cost effective
NE: more effective, more costly (right top) = ICER < willingness to pay
SW: less effective, less costly (left bottom) = ICER > willingness to pay
SE: more effective, less costly (right bottom) = cost effective

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16
Q

How do you calculate the Incremental cost-utility ratio (ICUR).

A

Costs.intervention - costs.control Costs
———————————————— = ———– = ICUR
Utility.intervention - Utility.control Utility

17
Q

What are the three steps in a cost benefit analysis

A
  1. Calculate costs (intervention costs)
  2. Calculate benefits
  3. Calculate NB, BCR and / or ROI
18
Q

How do you calculate benefits?

A

Benefits: program outcomes converted to monetary values

  • Example: reduced sickness absence, improved work productivity
  • Benefits = Costs.control - Costs.intervention
    • Positive benefits indicate reduced spending
19
Q

How do you calculate NB, BCR and/ or ROI and what do these terms mean?

A
Net benefits (NB) = Benefits - costs 
 - Net savings/ loss

Benefit Cost Ratio (BCR) = benefits / costs
- Amount of money returned per Euro invested

Return on Investment (ROI) = ((Benefits - Costs) / Costs)) * 100
- Percentage of profit per euro invested

20
Q

When is an intervention cost- beneficial (NB, BCR, ROI)

A

NB > 0
BCR > 1
ROI > 0

21
Q

EXAMPLE OF STUDY. SLIDE 50 -75

A