Healthcare
Economic evaluation
When would it be appropriate to use a cost-minimization analysis?
Cost-minimization analysis is only used when researchers are comparing drugs that are equally effective and are equally well-tolerated in the population being studied. This means that cost-minimization analysis is never the first study used when evaluating the costs and the benefits of two different drug treatments. Preliminary studies must first establish each drug's effectiveness, side effects, and tolerability in an independent fashion. If they are deemed to be relatively equitable then their relative costs when treating the affected population can be compared (HTA 101: IV. Cost analysis methods, 2011, U.S. National Library of Medicine).
Explain when you might use a cost-utility analysis?
Cost-utility analysis is a form of cost-effectiveness analysis comparing monetary costs with outcomes in terms of their utility for the patient. Mortality or other forms of patient 'utility' are given monetary values. A general unit of measurement called QALY is given, enabling cross-comparisons between different treatments in a variety of health-related fields. It can be distinguished from a cost-effectiveness analysis (CEA) which compares outcomes in non-monetary terms. Health insurance companies when evaluating the costs of potential approved treatments and national health care systems that engage in a certain degree of rationing of care, based upon quantifiable outcomes, often use this system (HTA 101: IV. Cost analysis methods, 2011, U.S. National Library of Medicine).
What type of economic evaluation should be used when determining if a new drug that reduces mortality should be used? Why?
Cost-consequence analysis allows for an analysis of costs and outcomes in discrete categories, without aggregating or weighting them (HTA 101: IV. Cost analysis methods, 2011, U.S. National Library of Medicine). This will give a picture of the efficacy of the drug, its financial costs, its impact upon society, and impact upon the patient. When a drug is new, data must first be accrued on the drug itself before it can be compared with similar treatments.
What type of economic evaluation should be used when comparing outcomes and costs of two diabetes therapies that affect both the severity of the disease and the survival rate? Why?
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