Pharmacoeconomic Analysis Pt2 Flashcards

1
Q

Cost and benefits and points of view

A
  • Generally seek to get the most benefits with the lowest cost; but this depends on ones point of view (perspective)
    a) Providers: health regions, hospitals, practitioners
    • Clinical outcomes and service funding
      b) Payers: insurers both public and private
    • Economic outcomes and sources of revenue
      c) Patients: patients and their families
    • Humanistic outcomes and OOP expenses
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the different viewpoints and costs

A
  • Costs are affected by the scope of the perspective
    a) hospitals
    • costs associated with treating (wages, drugs, supplies) patients associated with the patients stay in the hospital
      B) Ministry of health
    • Include all out of hospital care costs (such as visits to family doctor)
      c) Society
    • Includes costs to other public agencies, costs to patients or families and costs to society due to lost of production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What viewpoints are best

A
  • Broader viewpoints
    • This avoids cost shifting: putting the cost on another viewpoint rather then the one that affects you
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is discounting

A
  • Costs and benefits of an action happen at different times
    • The timing of costs and benefits affects how we value them in relative terms
    • Discounting is adjusting future plans as they are not as valued
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
  • Two types of gratification
A

a) Delayed gratification
- Pay first and wait to benefit later
b) Immediate gratification
- Pay later and benefit now

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  • What is the purpose of discounting
A
  • To adjust the value of costs and benefits to reflex how we value them at the moment
    a) Time preference: tend to prefer benefits sooner and costs later
    • Causes loan interest
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
  • What is the time-value trade off
A
  • You get delayed gratification for an interest price
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How to set the discount rate

A
  • r,
    • Saving and lending markets reflect consumer time preference
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the implications of a higher discount rate

A
  • The discount rate increase the relative value of long term benefits and costs will decline
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is sensitivity analysis

A

a) A one way or univariate analysis
- Change one variables on the evaluate conclusions (best and worse case scenarios)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Scenario or multivariate analysis

A
  • Impact of changing two or more variables (best and worse case scenarios)
    • Creates a single distribution curve which is based on probability distribution of each variable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the decision plane

A

a) Inferior: less effective and more costly
b) Dominant: more effective and less costly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  • What is the cost effective threshold
A
  • Tells whether it is the new therapy will be cost effective
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
  • What happens when economic analysis collides with real world decisions
A
  • Objective of economic analysis is not cost containment, but rather to maximize efficiency (based on comparing new therapies with those with established effectiveness
    • A tool should intended to assist decision making (it shouldn’t be used to replace judgement)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the Oregon plan

A
  • A project that ranked things based on utility x time (and cost) to make a rating but this was useless as it didn’t tell us anything
    • Rather picked the most important things to treat and ranked them after
How well did you know this?
1
Not at all
2
3
4
5
Perfectly