Pharmacoeconomics

Question 1

what is pharmacoeconomics

Answer 1

the comparison of value of 1 drug product or drug therapy to another

Question 2

why is pharmacoeconomics used

Answer 2

• as a marketing strategy
• better value for money
• development of new drug products for an unmet medical need or cost effective treatment or better efficacy, reduced toxicity

Question 3

why have healthcare costs increased

Answer 3

• COVID
• high costs and sometimes overpriced medications
• wasteful/inappropriate prescribing
• excessive profits for Pharmaceutical industry
• unnecessary hospital admissions
• supply not meeting demand

Question 4

what factors do economic studies depend on

Answer 4

1. disease and therapy under evaluation
2. current therapies available
3. interests of regulatory bodes, industry providers

Question 5

what is the primary economic factor to be satisfied

Answer 5

therapy is good value for cost

Question 6

how is value created

Answer 6

minimising the ratio of cost to efficacy creates value
- enhances ability to deliver a superior product

Question 7

how is the basic value of medical care represented

Answer 7

evidenced by general trends
- increased use of medical care and prescription drugs
- mortality rates of certain diseases have significantly declined
- mean lengths of hospital stay also declined

Question 8

what 3 objectives must pharmacoeconomics and outcomes research originate within

Answer 8

1. acceptable clinical outcomes
2. acceptable humanistic outcomes
3. acceptable economic outcomes

Question 9

what is health economics

Answer 9

science of assessing cost and benefits in healthcare
- identify most efficient and value for money or cost effective benefit

Question 10

what are the interests of pharmaceutical companies

Answer 10

1. develop effective medications
2. improve drug safety
3. increase tolerability to medications
4. develop cost effective therapy

Question 11

define cost effectiveness

Answer 11

when the outcome is worth the cost relative to competing alternatives

Question 12

what is average cost effectiveness

Answer 12

the cost of an agent required to achieve each unit of effect
- no comparison is made to alternative agents
average cost effectiveness= cost of drug/resulting effect

Question 13

what is incremental cost effectiveness analysis

Answer 13

makes comparisons to other therapeutic options, standard of care or placebo

Question 14

what is the fundamental ratio

Answer 14

cost option B- cost option A/effect option B- effect option A

Question 15

What are opportunity costs

Answer 15

benefit forgone when selecting one therapy over the next best alternative

Question 16

what are marginal costs

Answer 16

no significant change in cost in the short term, but overall a marginal benefit
- eg. reducing treatment from qds to tds

Question 17

how are benefits measured

Answer 17

direct costs and indirect costs

Question 18

what are direct costs

Answer 18

these are costs to health care provider
- limited resources

Question 19

what are indirect costs

Answer 19

costs from a society point of view

Question 20

what are intangible costs

Answer 20

costs for
- quality of life
- patient care
- dependent care/support system

Question 21

what are the types of pharmacoeconomic analysis

Answer 21

1. cost minimisation
2. cost benefit
3. cost effectiveness
4. cost utility