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
- Clinical outcomes and service funding
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
- costs associated with treating (wages, drugs, supplies) patients associated with the patients stay in the hospital
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
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
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
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
7
Q
- What is the time-value trade off
A
- You get delayed gratification for an interest price
8
Q
How to set the discount rate
A
- r,
- Saving and lending markets reflect consumer time preference
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
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)
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
12
Q
What is the decision plane
A
a) Inferior: less effective and more costly
b) Dominant: more effective and less costly
13
Q
- What is the cost effective threshold
A
- Tells whether it is the new therapy will be cost effective
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)
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