Pharmacoeconomics Flashcards
Cost-Minimization Analysis (CMA):
A method used when two or more interventions have already been proven to have equivalent outcomes. The analysis focuses solely on comparing the costs, with the goal of identifying the least expensive option.
Cost-Effectiveness Analysis (CEA):
A method that compares the relative costs and outcomes (often measured in natural units such as life years gained, hospitalizations averted) of two or more interventions. The result is often expressed as a cost per unit of health outcome (e.g., cost per life year saved).
Incremental Cost-Effectiveness Ratio (ICER):
The ratio of the difference in costs between two possible interventions to the difference in their effectiveness. It represents the additional cost required to gain one additional unit of benefit (e.g., cost per QALY gained). ICER = (Cost of New Treatment - Cost of Standard Treatment) / (Effectiveness of New Treatment - Effectiveness of Standard Treatment).
Cost-Utility Analysis (CUA):
A type of cost-effectiveness analysis that incorporates patient preferences or utilities into the outcomes, typically using Quality-Adjusted Life Years (QALYs) as the measurement unit. This allows for a more comprehensive comparison of interventions that affect both the quantity and quality of life.
Quality-Adjusted Life Year (QALY):
A measure of the value of health outcomes, combining both the quality and quantity of life lived. One QALY equates to one year in perfect health. A QALY less than 1.0 reflects less than perfect health, and interventions are evaluated based on the cost per QALY gained.
Cost-Benefit Analysis (CBA):
A method that compares both the costs and benefits of an intervention, with both expressed in monetary terms. The goal is to determine whether the monetary benefits of an intervention exceed the costs, and by how much.
Direct Costs:
Costs that are directly related to the delivery of a healthcare intervention, such as the cost of medications, medical devices, hospital stays, and healthcare provider services.
Indirect Costs:
Costs associated with lost productivity due to illness, disability, or death. These can include loss of income, reduced ability to work, and other non-healthcare-related costs.
Discounting:
The process of adjusting future costs and benefits to their present value, recognizing that money and resources today are worth more than the same amount in the future. This is important in long-term economic evaluations.
Willingness to Pay (WTP):
The maximum amount an individual or society is willing to pay for a specific health benefit or to avoid an adverse health outcome. WTP is often used as a threshold to determine whether an intervention is considered cost-effective.
Direct Non-Medical Costs:
Costs incurred during medical care that are not directly related to the treatment itself, such as transportation costs to healthcare appointments.
Intangible Costs:
Costs that are difficult to measure but significant, such as pain, suffering, or anxiety, which impact a patient’s quality of life but aren’t directly quantifiable in monetary terms.
Wholesale Acquisition Cost (WAC):
The catalog price a wholesaler pays to the manufacturer for drugs. It doesn’t account for potential discounts or rebates.
Average Manufacturer’s Price (AMP):
An estimate of the average amount paid by pharmacies to acquire drugs from manufacturers, including any rebates or discounts.
Dominant/Dominated Strategy:
A drug or intervention is considered dominant if it is both more effective and less expensive than the alternative. Conversely, an intervention is dominated if it is less effective and more expensive than the alternative.
In the ECHO model, Economic Outcomes are
Costs associated with healthcare interventions, including direct, indirect, and intangible costs.
In the ECHO model, Clinical Outcomes are
Health-related results such as reductions in disease progression, symptom control, or prevention of complications.
In the ECHO model, Humanistic Outcomes are
Patient-centered measures like quality of life and patient satisfaction, often assessed through health-related quality of life (HRQoL) and patient-reported outcomes (PROs).
