PharmacoEconomics

Question 1

Medical Costs

Answer 1

The cost of medical products and services.

Fixed costs: electricity and rent.
Variable costs: Medications, fees for services and supplies.

Question 2

Non-Medical Costs

Answer 2

Any costs for non-medical services that are results of illness or disease but do not involve purchasing medical services.

*Indirect, intangible and opportunity costs. (Types)

Question 3

Indirect Non-Medical Cost

Answer 3

Reduced productivity of patients.
Reduced productivity of unpaid caregiver.
Lost income. (Premature death)

Question 4

Intangible Non-Medical Costs

Answer 4

Pain, suffering and inconvenience. (Non-financial Outcomes)

Question 5

Opportunity Non-Medical Cost

Answer 5

Economic benefit lost for using one therapy instead of the next best alternative therapy.

Question 6

Outcomes (Consequences)

Answer 6

1. Economic Outcomes
2. Clinical Outcomes
3. Humanistic Outcomes (Functional status and QoL)

Question 7

Cost Minimization Analysis (CMA)

Answer 7

Used when benefits are the same. Determines the least costly alternative. (Simplest analysis)

Outcome: Equivalent outcome.

• Used only when outcomes are equivalent. (Same)
• Can’t compare different classes of medications.

Question 8

Cost Benefit Analysis (CBA)

Answer 8

Identifies and measures the benefits and costs of a treatment program.

Outcome: Economic outcome.

Compare benefit in monetary values ($) and computes a net gain.

Can determine if the benefits exceed the cost of the program.

Can compare multiple programs with either similar or different outcomes.

Disadvantage—difficult to put a monetary value on health outcomes.

Presented as: Net gain (beneficial if >0) and Benefit to Cost Ratio (beneficial if >1)

Question 9

Cost Effectiveness Analysis (CEA)

Answer 9

Measures cost in dollars ($) and outcomes in natural health units e.g. blood pressure.

Outcome: Clinical outcome.

Presented as ACER, ICER, SFDs and % healed.

CEA is only performed at two conditions; when the outcome of
one intervention is BOTH better than another AND the cost is
greater.

*Outcomes are easier to quantify.

• Interventions with different types of outcomes cannot be compared.
• Can’t combine more than one important outcome.

Question 10

Cost Utilization Analysis (CUA)

Answer 10

Allow the patient to specify how much better they are feeling when taking specific medications.

Compare the cost to the quality and quantity of patient life years.

Outcome: Humanistic outcome.

Presented as Rating Scale (RS), Standard Gamble (SG) and Time Trade Off (TTO).

Can incorporate morbidity and mortality. (Multiple programs with similar or unrelated outcomes)