Quiz 3

Question 1

Pharmacoeconomics

Answer 1

• description and analysis of the costs and consequences of pharmaceuticals and related services
• process of identifying, measuring, and comparing the costs, risks, and benefits of programs, services, or therapies
• determining the outcomes from the perspective of patients, the HC system, or society

Question 2

Why is pharmacoeconomics important?

Answer 2

• healthcare costs increasing - US spends more
• healthcare outcomes are declining in US (life expectancy)
• drugs are expensive (especially biologics that are specialized in nature)
• trade off considerations on how to spend resources

Question 3

4 Types of Cost

Answer 3

1. direct medical costs
2. direct non-medical costs
3. indirect costs
4. intangible costs

Question 4

Direct Medical Costs

Answer 4

medical costs for providing treatment

Ex)
- cost of meds
- physician visits
- hospitalizations

Question 5

Direct Non-Medical Costs

Answer 5

costs to patient/family directly associated with treatment, but not medical in nature

Ex)
- cost of transportation to clinic
- babysitter
- food/lodging

Question 6

Indirect Costs

Answer 6

costs that result from loss of productivity because of illness/death –> do not involve transfer of money

Ex)
- missed work/school days
- decreased productivity

Question 7

Intangible

Answer 7

costs of pain, suffering, anxiety, or fatigue

difficult to measure and assign value

Question 8

Different perspectives of who bears the burden of cost?

Answer 8

• Patient (who comes out of their own pocket)
• Institution (how much money is hospital getting back compared to what they are spending)
• Payer (how much is insurance paying, reimbursement)
• Society (taxes support IN Medicaid plan or taxes that support Medicare)

Question 9

Pharmacoeconomic Analyses

Answer 9

1. Cost-minimization analysis
2. Cost-benefit analysis
3. Cost-effectiveness analysis
4. Cost-utility analysis

COSTS ARE MEASURED IN US DOLLARS

Question 10

Cost-Minimization Analysis

Answer 10

used to compare costs of interventions with equivalent clinical outcomes –> measures total direct cost of drug (drug, preparation, administration, etc)

Ex)
- generic vs brand
- drug A vs drug B (equal efficacy/safety in same medication class)

Cost Measurement Unit: $$
Outcome Measurement Unit: not measured (equivalent)

Advantages: simple, no assessment of outcome
Disadvantages: ONLY useful when outcomes are equal

Question 11

Cost-Benefit Analysis

Answer 11

measures costs of interventions and outcomes in monetary units

determines which intervention provides the best monetary benefit

must assign monetary outcome to a clinical endpoint

Cost Measurement Unit: $$
Outcome Measurement Unit: $$

Advantages: comparison of interventions with different outcomes
Disadvantages: requires assigning monetary value to pain, suffering, life, LDL, BP