Resource Allocation Flashcards
How is the nhs funded?
How does it spend?
General taxation
Annual budget of £127 billion
NHS cannot meet need/demand for so services so decisions must be made on where to direct resources
What is cost benefit?
Cost + benefits expressed in monetary units
E.g. do I take ibuprofen (4p) now to avoid taking a more expensive drug later?
What is cost minimisation?
Compares costs of alternative treatments of equal effectiveness
E.g. should I buy drug A (5p) or drug B (£1.66) if they have the same effect
What is cost effectiveness?
Ratio expressed in monetary units + consequences in natural units e.g. Death or time to pain relief
E.g. cost/minute of pain avoided.
Do I buy normal or fast acting for my headache?
What is cost consequence?
Costs expressed in monetary units, consequences in natural units- e.g. Death or pain relief
E.g. do I take ibuprofen or a drug that is better but more expensive
What is cost utility?
Ratio of costs in monetary units compared to benefit of the cost
Comparing 2 different treatments together by measuring cost benefit
E.g. I have £1 - do I buy paracetamol for my headache or tampons for my period
Cost/year of healthy life
E.g. do I buy ibuprofen for my headache or E45 for my eczema
PREFERRED BY NICE
MEASURES IN QALY
What is health utility?
Measure of quality of life or overall health status
In RCTs we can use EuroQol-50 to assess health utility, what does it consist of ?
Questionaire with 5 dimensions
MOBILITY SELF CARE USUAL ACTIVITIES PAIN/DISCOMFORT ANXIETY/DEPRESSION
What is the role of NICE in resource allocation?
Appraisals of new drugs, procedures and techniques
Producing guidelines
What is a QALY?
Quality-adjusted life year
Can be used to measure cost in monetary units of buying one year of life imperfect health
Used by nice to measure cost utility e.g. 5yrs of life at 100% vs 10yrs of life at 50%
1 year of life in perfect health = score of 1
How do we calculate QALY?
In RCTs, measure EQ-50 at baseline + follow up after intervention
Score of 1= perfect health, score of 0= state equal to death
Range = -0.0281 to +1 so recognises a state worse than death
If QALY = 1, NHS will pay £20- £30,000 for intervention
If QALY = 0.1 NHS will pay £2000-3000
How to calculate incremental cost effectiveness Ratio (cost per QALY)
Cost / utility (QALY)
What else informs resource allocation decisions?
NICE citizens council
Relevant ethical principles/values for resource allocation
Proportional equality
Ethical importance of process in decision-making
Relevant ethical principles of resource allocation?
UTILITARIANISM- maximising overall benefit, underlies QALY
RESPONDING TO NEED- some people may need services more, some people may have a need which is so great even if we could only benefit a small amount we would treat, even though it would be costly
FAIRNESS (EQUITY)- allocating resources in proportion to need while acknowledging the needs of everyone
Why is it important for there to be a process in decision making?
- reasons agreed by all stakeholders as relevant and reasonable
- consistency of reasoning
- transparency of decision making
- opportunity for appeal/review