WEEK 3: Health Economic Evaluation Flashcards
Outline the Objectives of Health Systems.
- To improve the level and distribution of health outcomes in the
population
– Increase length of life
– Improve quality of life - To protect ind
healthcare
Q: How do economists view health care production?
Q: What are some important factors that influence health at a population level?
A: Economists view health care production as a “Health Production Function,” which is similar to a general production function. In this framework, health is considered the output, and inputs such as hospital stays, doctor visits, drugs, and other factors contribute to the production of health.
A: At a population level, factors beyond medical care, known as the social determinants of health, play a significant role. These factors can include diet, lifestyle, income, and other social and environmental factors.
Q: How do individuals make trade-offs between health and other economic goods?
Q: What is the concept of “derived demand” in the context of medical care?
A: Individuals often make trade-offs between investing in their health and allocating resources to other economic goods. The doctor acts as the patient’s agent in organizing and advising on this process.
A: The demand for medical care is considered a “derived demand” because it is derived from the demand for health. As individuals seek to improve their health, they demand medical care as a means to achieve that goal.
Define the following terms:
- Efficiency:
- Health system efficiency:
- Efficiency: use resources in the best possible way to achieve certain outcomes
- Health system efficiency: the extent to which the inputs to the health system (e.g., resources) are used to achieve health system goals.
Q: What is technical efficiency in the context of health and medical care production?
Q: Can you provide examples of technical efficiency in health and medical care production?
A: Technical efficiency refers to the ability to produce a given level of output while minimizing the use of inputs. It focuses on minimizing costs for a given level of output and reducing waste by optimizing the use of resources in producing the desired outcome.
A: Examples of technical efficiency in health and medical care production include:
*Choosing between keeping patient records in paper form or electronic form, considering factors such as cost, accessibility, and efficiency of information management.
*Using a lower dose of a drug to achieve the same clinical outcome as a higher dose, thereby minimizing the use of resources while maintaining effectiveness.
Q: What is allocative efficiency in the context of health and medical care production?
Q: Can you provide an example of a decision related to allocative efficiency in healthcare?
A: Allocative efficiency focuses on directing limited resources towards producing the “right” mix of healthcare outputs. It involves making decisions about resource allocation to maximize health gains or achieve higher social welfare from a given resource endowment.
A: An example of a decision related to allocative efficiency in healthcare is whether the government should fund a primary care service or expand a critical care unit in a hospital.
This decision involves considering the allocation of resources to different healthcare services and determining which option would result in the greatest overall health benefit or social welfare.
Q: What is health economic evaluation?
A: Health economic evaluation involves comparing two or more alternative health interventions, treatments, or programs in terms of their costs and effectiveness.
The effectiveness is measured in the same units, and the costs refer to the value of resources involved in providing the treatment or intervention.
The goal is to assess the cost-effectiveness or cost-benefit of different healthcare options.
Q: What are some examples of health outcomes measured in health economic evaluation?
Q: How does health economic evaluation help decision-making?
A: Health outcomes measured in health economic evaluation can include the number of prevented diseases and deaths, quality-adjusted life years (QALYs), disability-adjusted life years (DALYs), increased quality of life, and saved money.
A: Health economic evaluation provides information to support decision-making when resources are limited.
It helps identify the most cost-effective interventions or programs and can inform resource allocation decisions.
By comparing costs and consequences, decision-makers can prioritize interventions that provide the greatest health benefits for a given resource investment.
Outline Healthcare Interventions as Technologies
Healthcare Interventions as Technologies
* Technology is the practical application of knowledge
* Healthcare Technology and Examples
➢Drugs e.g Cisplatin
➢Vaccines e.g HPV vaccine for carcinomas
➢Medical devices e.g Pleurx-Denver catheter for fluid drainage in lung cancer
➢Diagnostics e.g CT scan screening, X-rays, Endobronchial US
➢Procedures (medical) e.g Psychotherapy for (some) cancer patients, Radiotherapy, Proton
therapy, Photodynamic therapy etc. for lung cancer
➢Procedures (surgical) e.g Laser surgery to unblock airway, cryosurgery (to freeze tumor), etc.
➢Support systems e.g Telemedicine, drug formularies, blood banks, electronic medical records
➢Health system innovations e.g Organizational and managerial e.g., clinical pathways, alternative
healthcare configuration
Discuss the Rationale for Economic Evaluation
in healthcare.
- Information on efficacy and effectiveness is necessary but not sufficient for making healthcare decisions
–Given scarce resources, policymakers need a means to allocate
resources between competing demands
– Explicit consideration of the opportunity cost of alternative courses of action is necessary
Q: What is comparative analysis in healthcare?
Q: What are some commonly used measures of effectiveness in comparative analysis?
A: Comparative analysis in healthcare involves comparing two or more health interventions, treatments, or programs in terms of their costs and effectiveness.
It aims to assess the value of one intervention compared to another by considering the costs and health outcomes associated with each intervention.
A: The gold standard measures of effectiveness in comparative analysis are quality-adjusted life-years (QALYs) and disability-adjusted life-years (DALYs).
These measures combine both the length and quality of life to provide a comprehensive assessment of health outcomes.
Q: How is cost-effectiveness measured in comparative analysis?
A: Cost-effectiveness is typically measured by calculating the cost per DALY averted or the cost per QALY gained.
These measures allow for the comparison of the costs of an intervention to the health benefits achieved, providing insights into the efficiency of different healthcare options.
Q: What is the NE Quadrant in health economic evaluation?
A: The NE (North-East) Quadrant represents a situation where Intervention B is both more costly and more effective than Intervention A.
This scenario is common when innovative technologies increase effectiveness relative to the standard of care but come at an added cost.
Q: What is the ICER in health economic evaluation?
State the formula for ICER.
A: The ICER (Incremental Cost-Effectiveness Ratio) is a measure used in health economic evaluation to compare the value of one intervention (Intervention B) to another (Intervention A).
It is calculated by dividing the incremental change in costs by the incremental change in health outcomes.
The ICER provides a cost per unit of health outcome gained, such as cost per DALY averted or cost per QALY gained.
What are some examples of units used in cost?
State the units used in outcomes.
A: Costs in cost-effectiveness analysis are always measured and presented in currency units, such as dollars, pounds, euros, or other relevant currencies.
Health outcomes, on the other hand, can be measured in various ways but must be in the same units for comparators A and B.
