Define pharmacoeconomics

Abstract The use of economic analyses as they pertain to the practice of medicine has become increasingly commonplace. Driven by both changes to reimbursement incentives and the clinical practice of medicine, these analyses have the potential to answer many of the questions posed by the delivery of health care in a fiscally responsible era. As such, the health economist is faced with the increasingly important role of providing data and insights key to the deliberative process of comparing the costs and benefits of medical care. To this end, health economists rely on a number of tools in the practice of pharmacoeconomics. The most common tool is a cost-effectiveness analysis, which compares the clinical effects of alternative therapies (mortality, morbidity) to their net costs. A relatively new tool to the field of clinical economics, the cost per quality-adjusted life-year has the potential of becoming the gold standard in clinical economics for measuring clinical effects if further refinement to measurement technique is achieved. All of these tools have as their outcome the development of a medical decision model or decision tree. These decision trees have four components: disease outcome states; the probability of transition between disease states; the costs, financial benefits, and effects incurred by patients in each outcome state; and risk groups. Data from a wide range of sources, including randomized clinical trials and retrospective analyses of data collected from...

This article has an unclear citation style. The references used may be made clearer with a different or consistent style of ( October 2011) ( ( Pharmacoeconomics refers to the scientific discipline that compares the value of one pharmaceutical drug or drug therapy to another. Economic evaluation [ ] Pharmacoeconomics centers on the In policy [ ] In 1993, Impact of pharmaceutical innovations [ ] Further information: Spending on new pharmaceuticals and R&D, although expensive, is considered to bring net benefits, as it decreases overall health care costs. A study of 30 countries estimated that 73% of the increase in life expectancy in recent decades is due to new pharmaceuticals alone. Another study found that new drugs have reduced hospital usage by 25% per decade by replacing more expensive forms of care like surgery. It has been estimated that the cost per additional life-year gained thanks to pharmaceutical innovation was US$2,730, compared with US$61,000 for dialysis, a commonly used benchmark. See also [ ] • Mueller, C; Shur, C.; O'Connell, J. (1997). American Journal of Public Health. 87 (10): 1626–29. • Arnold, Renée J.G.; Ekins, Sean (2010). "Time for Cooperation in Health Economics among the Modelling Community". PharmacoEconomics. 28 (8): 609–613. • Deepak Bhosle, Asif sayyed*, Shaikh Huzaif, Alimuddin Shaikh, Vasundhara Bhople, Ayman Ali Khan.PHARMACOECONOMICS IN INDIAN CONTEXT. International journal of current pharmceutical and clinical research vol 7 issue 1 -2...

Pharmacoeconomics: Principles, Methods, and Applications You must have javascript enabled to view this website. Please change your browser preferences to enable javascript, and reload this page. Pharmacoeconomics: Principles, Methods, and Applications Learning Objectives: On completion of the chapter, the reader will be able to: 1. Recite the classic definition of pharmacoeconomics and define pharmacoeconomic research. 2. List four primary perspectives that a pharmacoeconomic analysis can be conducted from, and describe how they differ. 3. Discern between different medical cost categories that can be identified, measured, and compared in a pharmacoeconomic analysis. 4. Categorize the outcomes (consequences) of medical care into three basic areas, popular to medical decision making. 5. Describe the components of a “full” economic evaluation. 6. Compare and contrast four economic evaluation methods commonly applied to pharmacy practice in today’s healthcare settings. 7. Discuss how cost-benefit analysis can be used to quantify the value of clinical pharmacy services. 8. Define cost-effectiveness analysis and discuss the appropriate application of this method for drug therapy evaluations. 9. Construct an argument for a situation where an incremental cost-effectiveness ratio would be preferred over an average cost-effectiveness ratio. 10. List two primary applications of pharmacoeconomic principles and methods to “real world” pharmacy practice environments. 11. Compare and con...

Cost Effectiveness Analysis Compares costs of two or more alternatives versus outcomes measured in natural units (eg: BP, HbA1c) Units of measurement o Cost – Monetary ( ) o Consequence – health outcome (eg: BP, HbA1c) ICER – Incremental Cost Effectiveness Ratio ICER Cost/ Effect (CTx1 – CTx2)/(ETx1 – ETx2) Cost Utility Analysis Analysis that account for both quality and quantity of life which are expressed as “utilities” o Utilities represent patient preferences and quality of life associated with disease and/or treatment Units of Measurement o Cost – Monetary ( ) o Consequence – Quality adjusted life year (QALY) Quality adjusted life year – factor of life expectancy and utility ICER Cost/ Effect (CTx1 – CTx2)/(QALYTx1 – QALYTx2) Cost Effectiveness Plane Cost 500 More Costly, Less Effective Quadrant II Standard treatment dominant 400 More Costly, More Effective Quadrant I Trade off 300 200 100 Effectiveness -1 -0.8 0 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 -100 -200 Less Costly, Less Effective Quadrant III Trade off -300 -400 Less Costly, More Effective Quadrant IV New treatment dominant -500 11 1 Cost Effectiveness Plane Cost 500 More Costly, Less Effective Quadrant II Standard treatment dominant 400 More Costly, More Effective Quadrant I Trade off 300 t c e j Re 200 100 Effectiveness -1 -0.8 0 -0.6 -0.4 -0.2 0 - 100 Ac - 200 Less Costly, Less Effective Quadrant III Trade off - 300 - 400 t p ce 0.2 0.4 0.6 0.8 Less Costly, More Effective Quadrant IV New treatment dominant - 500...

Faculty Course Description This module is an introduction to the role of pharmacoeconomics (PE) in medical decision making from multiple perspectives. It will introduce the concepts of types of PE/Cost-effectiveness analysis (CEA), general computation involved in these analyses, and how to evaluate a CEA. Learning Objectives By the end of the Introduction to Pharmacoeconomics (PE) module, you will be able to: • State the role of PE in medical decision making. • Define the types of PE/cost-effectiveness analyses (CEA). • Explain the societal, patient and payer tradeoffs involved in using PE for medical decision making. • Understand the difference between and usefulness of average and incremental (marginal) CEA. • State the definition of utility measurement and its use in cost-utility analysis. • Understand the elements essential to a published CEA.