Mid Term review Flashcards
What does full economic evaluations include?
Full economic evaluations include a comparison of alternative investments in interventions and both cost/outcomes.
What are the 4 type of economic evaluations?
Cost minimization
Cost-effectiveness
Cost-utility
Cost-benefit
What distinguishes cost minimization?
Cost minimization is when the product or outcome is the same and we are comparing the cost.
ex: same medication is made but by different manufacturers (compare the cost)
What distinguishes cost effectiveness?
Cost-effectiveness compares the cost per unit for different intervention. There is an interest in both programs just need to find the cheapest program. Determines which program gives us the greatest health benefit for per dollar
What distinguishes cost utility?
Comparision of different interventions with different health outcomes. Common outcome measured is quality-adjusted life years. QALY= number of years gained x quality of life
What distinguishes cost benefit?
It accounts for all costs and outcomes in monetary terms.. direct, indirect, and intangible
Willingness to pay for treatment is taken into consideration.
(Valuing life-years saved based on peoples willingness to pay to reduce their risk of death)
Decision analysis, why and how its used
An analytic model that describes and interprets the results of an analytic model and describes the roles that models play in the policy process
Why: its purpose is to show the structure/components of a decision
How: they are used to identify relative costs and benefits of alternative health programs by using the practical application of decision analysis
What are the advantages and disadvantages of decision analysis?
Disadvantages: uncertainty there is not necessarily a dominant answer rather models display conditions under which different alternatives will dominate
Advantages: forces explicit assignment of values, makes clear sources of data, makes the assumptions clear and controls complexity to minimize human error
Define opportunity costs
Opportunity cost is when all the funds are spent on one intervention to ensure the most health benefit. What outcome will achieve the most health benefit.
How is opportunity cost taken into account in full economic evaluations
Opportunity cost measures what outcome will achieve the most health benefit.
Not all funding can be used on multiple interventions and health officials must choose the best one to use that will allow them to have a successful outcome and benefit.
Relationship between economic efficiency and ICEr
ICEr helps you identify the cheapest life year. They all increase survival and you can see where to buy the cheapest unit of survival
How do you calculate a ICEr and what do the results show?
ICEr compares the cost and effectiveness of two treatment options
Cost B-Cost A/ Outcome B-Outcome A
Importance of extended dominance and why it is important in evaluating
Extended dominance rules out any intervention that has an incremental cost-effectiveness ratio that is greater than that of a more effective ratio. Decision-makers prefer the intervention with a lower incremental cost-effectiveness ratio. Represents a situation where one could achieve a better outcome at less cost by treating a proportion of the population with a combination of two alternative strategies.
Define time frame horizon
Timeframe and analytic horizons determine how long costs and outcomes will be monitored
Timeframe: specific period during which the individual participates in a program or receives an
Intervention
Define analytic horizon
time period over which the costs and benefits related to intervention impacts are measured
