Quiz 4 Flashcards
Cost-Effective Analaysis
- measures outcomes in natural health units
- determines which intervention achieves a given objective at the lowest cost
Ex) infections cured, lives saved, etc
MOST COMMON TYPE OF ANALYSIS
Cost Measurement Units: $$
Outcome Measurement Units: natural health related units
Advantage: outcomes measured in units that are understandable to clinicians / no need to convert outcomes into dollar amount
Disadvantage: outcomes must be measured in the same units / length of life (survival) is no the same as quality of life
Incremental Cost-Effectiveness Ratio (ICER)
ICER = Total Cost of Drug A - Total Cost of Drug B /
Outcome of Drug A - Outcome of Drug B
Cost-Utility Analysis
- measure outcomes in terms of quality of outcome produced
- examines the cost of an intervention and the value of the outcome (Value = Cost + Quality)
- referred to as utility units –> most common is QALY
Cost Measurement Unit: $$
Outcome Measurement Unit: QALY (or patient preferences)
Advantage: accounts for both quantity and quality
Disadvantage: not a precise measure, viewpoint may be bias
QALY
quality adjusted life year
- takes into account both the quantity and quality of life generated by intervention
Examples of how to calculate QALY
Drug A: 4 years in health state of 75%
4 x 0.75 = 3 QALY
Drug B: 4 years in health state of 50%
4 x 0.5 = 2 QALY
Utility Scores
Perfect Health: 1
Moderate Angina: 0.83
Breast Cancer: 0.80
Severe Angina: 0.53
CA spread, constant pain: 0.16
Death: 0
What is considered cost effective when comparing interventions?
$100,000 to $150,000 per QALY gained is still cost effective by most people
Role of Pharmacist in Pharmacoeconomics?
- evaluate pharmacoeconomic literature
- apply results to clinical decision making (individual patient care, formulary, resource allocation, price setting)
- assist in the design and implementation of research studies
