Study Guide
Introduction to Pharmacoeconomics
-
University:
Michigan State University -
Course:
EC 498 | Economics of Health Care Academic year:
2019
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Views:
98
Pages:
16
Author:
hekeldigzjbz
Introduction to Pharmacoeconomics Health outcomes research
ECHO MODEL
• Outcomes research is defined as studies that attempt to identify,
measure, and evaluate the end results of health care services.
• Outcomes research may evaluate not only the clinical effects of
health care services but also the economic and humanistic impact of
these services.
• Evaluation of drug therapy and pharmacists’ services should include
assessments of: economic, clinical and humanistic outcomes;
(ECHO) model.
• All three of these outcomes need to be balanced simultaneously to
assess value. USA health care expenditures Health care expenditures in Jordan Health care expenditures in Jordan
About 11.6% of health care expenditures were for
medications in Jordan in 2011 Best care vs. rising health care costs
• Health care costs have been increasing
• A need to understand how limited resources
can be used most efficiently and effectively Best care vs. rising health care costs
• However …
• clinicians want their patients to receive the best care and
outcomes available
• payers want to manage rising costs
• How to solve this conflict?
• Economic evaluation combines these objectives by
estimating the value of patient outcomes received
for the expenditures spent on health care products Economic Evaluation
• Traditional cost-containment measures are not always consistent
with improved patient care.
• Attention has turned toward demonstrating the value of health care.
• A full evaluation of relevant costs and consequences differentiates
outcomes research from traditional cost-containment strategies.
➢Costs are defined as the value of the resources consumed by a program or
treatment alternative.
➢Consequences are defined as the effects, outputs, and outcomes of the
program or treatment alternative What are “Health Economics” and
“Pharmacoeconomics?”
• Health Economics applies theories, tools, and concepts of economics
to health and health care outcomes.
• Assessment of the most efficient use of available resources, defined
in terms of cost and outcomes.
• “Pharmacoeconomics” is the application of health economic
methods to pharmaceuticals or pharmacy services. Introduction to Pharmacoeconomics
No
advantage
Modest
advantage
Higher
cost
New Tx may
provide …
over
existing Tx Introduction to Pharmacoeconomics
• Pharmacoeconomics (PE) measure
if the added benefit of one
intervention is worth the added
cost of that intervention
• PE identifies, measures, and
compares the costs and
consequences of pharmaceutical
products and services Introduction to Pharmacoeconomics
Costs
If just the lefthand side of
the equation is
measured, it is
a cost
analysis(or a
partial
economic
analysis)
Outcomes
To be a true PE
analysis, both
sides of the
equation must
be considered
and compared
If just the
right-hand side
of the
equation is
measured, it is
a clinical or
outcome study Introduction to Pharmacoeconomics
• In PE, at least 2 options must be compared
• But some assessments consist of a “with or without”
comparison, estimating what would occur if the product or
service was provided (e.g., immunization or pharmacy
services) compared with no provision of the product or
service Importance of PE
• PE analyses can address the following questions:
• Should a new medication be added to the formulary?
• Should a new pharmacy service be implemented?
• Is this immunization or vaccine plan cost beneficial? Types of PE Studies
PE Studies
Costminimization
analysis
(CMA)
Costeffectiveness
analysis
(CEA)
Cost-utility
analysis
(CUA)
Cost-benefit
analysis
(CBA) Conclusion
• PE is used to estimate and compare costs and healthrelated outcomes for pharmacy interventions (products or
services)
• The methods used in PE research are borrowed from other
disciplines, such as health economics
• There are 4 basic types of PE studies: CMA, CEA, CUA, and
CBA
Introduction to Pharmacoeconomics
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