Topic F Cost-Utility Analysis Flashcards
Cost-Utility Analysis (CUA)
A pharmacoeconomic analysis that measures costs in dollars and outcomes in quality adjusted life year (QALY)
Takes “Patient” preferences or satisfaction (=Utilites) into account when measuring health consequences
CUA
Known as a subset of CEA
CUA
Definition of CEA
A pharmacoeconomic analysis that measures costs in dollars and outcomes in natural health units that indicate an improvement in health
Quality Adjusted Life Year (QALY)
A measure of the value and benefit of health outcomes. Incorporates both the quantity (Mortality:Death) and quality (Morbidity:Disease States)
(QALY) Cancer Treatment
Extension of life vs. Toxicity of the treatment
Characteristic of Utility Measurement
Subjective, Individualized, Personal, A room for biases!
QALYs Calculation
Utility x Years of Life
A patient with a prostate cancer rates his quality of life as 7 out of 10. If he is expected to live 3 years in this state, his QALY would be?
0.7 x 3 = 2.1 QALYs
Methods to Determine Utilities
Rating Scale
Standard Gamble
Time Tradeoff (TTO)
Rating Scale
A line with scaled markings
Perfect health at the top: 100 (1.0)
Death at the bottom: 0 (0.0)
Standard Gamble
Alternatives leading to probability (P) and probability (1-P)
Ex: Kidney Transplant = 80% probability of Healthy and 20% probability of Death.
Time Trade Off (TTO)
Utility = X / t
Advantages of CUA
Different types of health outcomes and diseases with multiple outcomes of interest can be compared
Advantages of CUA
Incorporates mortality and morbidity into one common unit of the QALY without having to determine or estimate the monetary value of the health outcomes
