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Flashcards in Cost-Effectiveness/COI Deck (20)
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1
Q

Cost

A

Value of resource associated with the production and/or delivery of a good service

2
Q

Opportunity Cost

A
  • “True cost” of resource
  • Value of “next best option”
  • Resources committed to one product/service cannot be used for another product/service (“opportunities”)
3
Q

Which costs should be evaluated?

A
  • Only the costs related to illness/treatment/services should be counted
  • Not always monetary
4
Q

“Traditional” Method of Costs Categories

A
  1. Direct Medical Costs
  2. Direct Non-medical Costs
  3. Indirect Costs
  4. Intangible Costs
5
Q

Direct Medical Costs

A
  • Associated with provision of healthcare goods and services
  • Simplest and most objective
  • EX: medications, labs, clinical encounters, procedures, etc.
6
Q

Direct Non-Medical Costs

A
  • Associated with receiving healthcare goods or services that are NOT medical in nature
  • EX: transportation, food, lodging, child care, etc.
7
Q

Indirect Costs

A
  • Lost work or earnings potential due to illness
  • “Productivity costs”
  • Can also be due to premature death
  • EX: missed work, lowered productivity, preventative death
8
Q

Intangible Costs

A
  • Difficult to measure/put monetary value on
  • What isn’t captured by the other categories
  • EX: Pain, suffering, anxiety, fatigue, etc.
9
Q

Perspectives

A
  • Why is the decision maker and what are their concerns
  • Determines which costs are relevant
  • Important for interpreting results in any cost analysis
  • Narrow perspectives may ignore important costs that still occur in reality
  • Recommend providing societal perspective additionally if not chosen to begin within
10
Q

Perspective Examples

A
  • Health insurance payer (predominantly seen)
  • Healthcare institution
  • Society (broadest): healthcare sectors, patient, family, other sectors
11
Q

COI Analysis

A
  • Cost of Illness
  • Type of economic analysis used to estimate total economic burden of a particular disease in society
  • Illness causes a consumption of resources
  • Summarizes economic burden of an illness
  • Can be prevalence or incidence based
12
Q

Prevalence Based COI

A
  • Most common
  • Number of individuals who have illness and aggregates all of the services utilized for that disease state over a SPECIFIC TIME PERIOD
  • Direct costs/productivity loss assigned to the years that they occur
  • Includes various stages of the illness
13
Q

Incidence Based COI

A
  • Number of individuals who become ill in a particular time period, then estimate lifetime costs associated with that illness
  • Presents future costs, projects future disease states, number of new diagnoses in that time period, estimated averted costs potential
14
Q

Why COI?

A
  • Promotes disease awareness
  • Highlight disease costs distribution: healthcare sector, patient/family, society, lost production/QoL
  • Demonstrates potential impact of new treatment
15
Q

Prevalence v.s. Incidence

A
  • Both give similar answers in diseases lasting <1 year

- Long term illnesses may have different results based on the method utilized

16
Q

Prevalence Costs Increase When….

A
  • Incidence is lower
  • Annual treatment costs decrease over time
  • Annual treatment costs and disability losses increase as disease progresses
17
Q

Prevalence Useful

A
  • Draws attention to the current burden being borne by those with the disease
  • Policy decisions: information on the magnitude of specific cost categories
18
Q

Incidence Useful

A
  • Support for preventative initiatives (vaccines)

- Demonstrates lifetime impact of disease and how management of disease may change

19
Q

Usefulness of COI Analyses

A
  • Inform us where/how our resources are being spent (only matters if we can do something about it)
  • Inform us of the benefits of curing or preventing a particular illness (cost saved)
  • Can be used to set priorities for healthcare policies
  • Can be used by employers or payers to set reimbursement strategies
  • Determining market potential for new product: lower SE, better outcomes, decreased costs, increased QoL?
20
Q

Limitations of COI

A
  • Some costs difficult to measure with current data (intangible)
  • Indirect costs often limited to morbidity and don’t consider mortality (premature death)
  • Studies don’t evaluate current strategy of care (not an effectiveness study)