intro to economic evaluation for family physicians 2015.2.25
TRANSCRIPT
FM Morning Activities: Introduction to Economic Evaluations in Healthcare Settings
Asst. Prof. Borwornsom Leerapan, MD PhD Department of Community Medicine
26 Feb 2015
Pix source: www.wsed.at/en/
What’s the level of our learning?
• Why Wisdom
• How Knowledge
• What, Who, When, Where Informa8on
• Number, Text, Picture, Sound, etc. Data
Source :influxentrepreneur.com/wendyelwell/
“Up and Down the Ladder of Abstraction”
นามธรรม (Abstract): • แนวคิด (concepts)
• ทฤษฎี (theories) • หลักการ (principles)
รูปธรรม (Concrete): • เป้าหมาย/วัตถุประสงค์ของการศึกษา (goals)
• การวัดต้นทุน/ผลลัพธ์ (measures) • รูปแบบ/ชนิดของการวิเคราะห์ความคุ้มค่า
(types of economic analysis)
• การแปลผล (interpretations) • การนำไปใช้ประโยชน์ (implications)
1. What is “economic evaluation”?
2. How should we read/do an economic evaluation in healthcare settings?
3. Why should family physicians be concerned with economic evaluation?
Presentation Outline
Pix source: online.wsj.com
“What exactly is “economic evaluation?”
Pix source: online.wsj.com
• Aekplakorn, et al. Diabetes Care, 2011.
• Aekplakorn, et al. Diabetes Care, 2011.
• Aekplakorn, et al. Diabetes Care, 2011.
• Christakis & Fowler (2007). NEJM.
• Christakis & Fowler (2007). NEJM.
• Christakis & Fowler (2007). NEJM.
• Gomes, et al. PLOS Currents Outbreaks. 2014.
• Gomes, et al. PLOS Currents Outbreaks. 2014.
• Gomes, et al. PLOS Currents Outbreaks. 2014.
• Riewpaiboon et al. Social Science and Medicine, 2005.
• Riewpaiboon et al. Social Science and Medicine, 2005.
• Riewpaiboon et al. Social Science and Medicine, 2005.
• Riewpaiboon et al. (2005). Social Science and Medicine.
• Leerapan & Namtatsanee (2013). Rama Med J.
• Leerapan & Namtatsanee (2013). Rama Med J.
• Leerapan & Namtatsanee (2013). Rama Med J.
• Barbosa, et al. (2015) Journal of Substance Abuse Treatment.
• Barbosa, et al. (2015) Journal of Substance Abuse Treatment.
• Barbosa, et al. (2015) Journal of Substance Abuse Treatment.
Research Question in Health Science
Source: Gilson, editor (2012). Health Policy and Systems Research: A Methodology Reader.
New Research Mapping?
Source: Hoffman et al. (2012). A Review of Conceptual Barriers and Opportunities Facing Health Systems Research to Inform a Strategy from WHO.
“It’s a no-brainer!”
Worse & More
Expensive
Better & More
expensive
Worse & Cheaper
Better & Cheaper
Cost
Heath Benefits
“No-brainer” vs. “Analysis”
Excluded Cost-‐effec8ve
Ques8onable Donimant
Source: Adapted from: www.whatisseries.co.uk
Cost
Heath Benefits
Some Vocabulary
• “Efficacy” (ประสิทธิศักย์)
– Measure of effects under ideal conditions
• “Effectiveness” (ประสิทธิผล)
– Measure effects under “real life” conditions
Ø Efficacy does not imply effectiveness!
• “Efficiency” (ประสิทธิภาพ)
– Measure of the relationship between costs and effects/benefits
– “Value” (ความคุ้มค่า)
Ø Effectiveness does not imply efficiency!
Economic Evaluation
• A study method that aims to provide an information on the efficiency of interventions.
• Intended to help decision makers make the best choices
under conditions of uncertainly, conflicting objectives, and resources constraints (Weinstein, 2006).
Example of Economic Evaluation
Source: AMERICAN JOURNAL OF RESPIRATORY AND CRITICAL CARE MEDICINE VOL 166 2002
Example of Economic Evaluation
Source:http: www.rcgp.org.uk/Publications/BJGP.aspx
Example of Economic Evaluation
Source: www.ncbi.nlm.nih.gov/pubmed
• Health technology: “the application of organized knowledge and skills in the form of devices, medicines, vaccines, procedures and
systems developed to solved a health problem and improved quality of lives” (WHO 2007).
• Issues:
– Safety
– Benefits (e.g. efficacy, effectiveness)
– Value for money (e.g. cost-effectiveness)
– Ethical considerations
– Institutional considerations
– Social considerations (e.g. equity)
Health Technology
Source: The 60th World Health Assembly agenda 60.29, 2007
policy
Intervention Technology
• Economic evaluation is a part of health technology assessment.
• Health technology assessment (HTA): “a structured analysis of health technology, a set of related technologies, or a technology-
related issue that is performed for the purpose of providing input
to a policy decision” (Goodman 2004).
Health Technology Assessment
Pix source: http://ecsphysics.webs.com/
HTA
Decision making
Scientific Evidence
Assessment of New Drugs
Source: Adapted from Teerawattananon (2013)
Quality
Efficacy/Effectiveness
Value for Money
For pre-market authorization (e.g. FDA)
For reimbursement (e.g. NICE, HITAP)
Safety
= “The Fourth Hurdle”
“How should we read/do an economic evaluation? ”
Pix source: online.wsj.com
Key Features of Economic Evaluation
1. “Efficiency”: relationship between costs/inputs and outputs
– Types of economic analyses
2. “Relative efficiency”: comparison between the intervention under the study and the natural comparator
– Incremental cost-effectiveness
3. “Perspectives”
4. “Models”: mathematical or simulation modelling
– Uncertainty
– Discounted value
Key Features of Economic Evaluation
Source: Beutels et al. (2007)
Perspectives
Costs
Cost Analysis
Cost-Effectiveness Analysis Cost-Utility Analysis
Cost-Benefit Analysis
Analyses
Cost-Consequence Analysis
CKD interventions 1) Palliative Treatment 2) Continuous Ambulatory
Peritoneal Dialysis 3) Hemodialysis 4) Renal Transplantation
Patient Provider
Payer Societal/Governmental
Figure Source: Adapted from John M. Eisenberg (1989)
Dimensions of Economic Evaluation
Concepts of Costs I
• Accounting costs vs. Economic costs
– Accountants concerns money or expenses in exchange for goods and services or input.
– Economists concerns resources sacrifice in order to obtain goods and services or input, or “opportunity costs” (ต้นทุนเสียโอกาส):
the value of benefits forgone by choosing one particular allocation of scarce resources over another (Brouselle and Lessard 2011).
• Cost vs. Price/Charge vs. Reimbursement
– Cost usually differs from price, charge, or reimbursement.
Source: Adapted from Brouselle and Lessard (2011)
Concepts of Costs II
• Fixed vs. Variable • Medical vs. Non-medical
• Average vs. Marginal • Capital vs. Operating/Recurrent
• Direct vs. Indirect
• External vs. Internal
• Tangible vs. Intangible
• Explicit vs. Implicit
Ø Direct medical cost, Direct non-medical cost, Indirect cost
Costs from Providers perspective
Total cost
Direct
Fixed Salaries Deprecia8on cost
Variable
Drugs OT wages
Referral charges Transporta8on Electricity/water
IndirectFixed
Salaries Deprecia8on cost
VariableOT wages
Office supplies Electricity/water
Figure Source: Courtesy of Chathaya Wongrathanandha, M.D
Costs from Patients perspective
Total cost
Direct
MedicalMedica8on Inves8ga8on Hospitaliza8on Rehabilita8on
Non-‐medicalFood
Transporta8on Child care
IndirectTangible
Absence from work Decrease earning
capacity
IntangiblePain
SufferingFigure Source: Courtesy of Chathaya Wongrathanandha, M.D
Types of Economic Evaluation
• All costs are in the same monetary unit.
• Type of outcomes determines type of analyses:
Health Outcomes Type of Analysis Findings
Clinical/Health effects CEA ICER
Utility/Quality of life CUA ICER
Monetary benefits CBA Net benefits, or Benefit-cost ratio
Health effects in non-aggregated format
CCA Lists of health effects gained/lost and resources used
Source: Adapted from Brouselle and Lessard (2011)
Types of Economic Evaluation
• Cost-Minimization Analysis (CMA)/Cost Identification
• Budget Impact Analysis (BIA)
• Cost-Effectiveness Analysis (CEA)
• Cost-Utility Analysis (CUA)
• Cost-Benefit Analysis (CBA)
• Cost-Consequence Analysis (CCA)
Source: Adapted from Brouselle and Lessard (2011)
Process of Outcome Asessment
1. Identification:
2. Measurement:
3. Valuation:
• Morbidity and mortality • Quality of life
• Measures in natural units (eg. number of deaths averted).
• Value benefits (if appropriate)
Figure Source: Courtesy of Chathaya Wongrathanandha, M.D
1) Measuring health in a natural/clinical unit:
– Length of life: (e.g. morbidity and mortality rate, life expectancy, life years lost, etc.)
2) Measuring health in a common unit:
– Quality of life measures (e.g. SF-36, EQ-5D, etc.)
– Measures health in monetary unit (e.g. THB, US$, etc.)
Measuring Health
Valuing Health
3) Valuing health into monetary terms:
– Willingness-to-pay (WTP)
– Human Capital
4) Utility or preference assessment:
– Quality-Adjusted Life Years (QALYs):
– Variants on QALY: Years of Health Life (YHL), Health-Adjusted Person Years (HAPY), Health-Adjusted Life expectancy (HALE)
• “Utility” = satisfaction/well-being that reflects a consumers (weighted) preferences
• “Utility weights” are necessarily subjective: they elicit an individual’s preferences for, or value of, one or more health states.
Methods of Valuing Health
Techniques For Measuring “Utility”
• Variety of techniques available:
– Time Trade off
– Person Trade Off
– Standard Gamble
– Rating Scale
Figure Source: Courtesy of Chathaya Wongrathanandha, M.D
Results: CEA
Cost of intervention A Cost of intervention B
Outcome A Outcome B
VS.
• Cost-Effectiveness Ratio: Concerns an average cost of each intervention
Figure Source: Courtesy of Chathaya Wongrathanandha, M.D
• Incremental/Marginal Analysis concerns the benefits gained or lost from adding or subtracting the next unit of resources for a given program (Mitton & Donaldson, 2004).
• Incremental Cost-Effectiveness Ratio (ICER):
= Additional costs (cost B – cost A)
Additional outcome (outcome B – outcome A)
Results: CEA with Marginal Analysis
Results: CBA
• Interpretation: If net benefit > 0, then benefit exceeds costs.
= -‐ Cost of intervention Benefits Net Benefits
Outcomes in monetary terms
Costs of the intervention and its side effects
Figure Source: Courtesy of Chathaya Wongrathanandha, M.D
• Interpretation:
– Baht saved per baht spent
– Return on each baht spent
Costs of the intervention and its side effects Cost of the
intervention
Benefits Benefit-Cost
Ratio =
Results: CBA
Outcomes in monetary terms
Figure Source: Courtesy of Chathaya Wongrathanandha, M.D
Figure 1. Three-way sensitivity analysis based on rates of the main clinical trial.
Source: Tjan-Heijnen V C G et al. (2003)
FL = Febrile Leukopenia
Results: CEA with Sensitivity Analysis
Results: CEA with Sensitivity Analysis
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Results: CEA with Sensitivity Analysis
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
“How should we conduct an economic evaluation? ”
Pix source: online.wsj.com
Types of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Types of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Types of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
The EQ-5D Questionnaire (Thai Version)
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Check-list of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Check-list of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Check-list of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Check-list of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Check-list of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
Check-list of Economic Evaluation
Source: อุษา ฉายเกล็ดแก้ว, ยศ ตีระวัฒนานนท์, สิริพร คงพิยาชัย, เนติ สุขสมบูรณ์, บรรณาธิการ (2552)
“Why should we be concerned with economic evaluation?”
Pix source: online.wsj.com
Decision-makers in Healthcare
Source: Adapted from: Lessard et a. (2009)
Macro
• Policy level
• Policymakers
Meso
• Administrative level
• Organizational administrators
Micro
• Clinical practices level
• Clinicians
Cost-Effectiveness Plane
Excluded Cost-‐effec8ve
Ques8onable Donimant
Source: Adapted from: www.whatisseries.co.uk
Cost
Heath Benefits
• FPs prefer evidence-based decision making, that is customized/individualized for each patient (and family).
• But evidence is usually generated by population-level studies (including economic evaluation).
• Question: How should FPs use economic evaluation of health interventions to help making clinical clinical decisions for each patient?
Dilemma of Clinical Decisions
Pix source: meritmattersusa.blogspot.com/2010_11_01_archive
WHO Health System Framework
Pix source: WHO (2007)
The Five Control Knobs for Health-sector Reform
Source: Marc J. Robert etc. (2004)
Control Knobs
Target popula6onThe Health System
Financing
Payment
Organiza8on
Regula8on
Behavior
Efficiency
Quality
Access
Health Status
Customer Sa8sfac8on
Risk Protec8on
• Two ways to increase healthcare efficiency:
– เพิ่มประสิทธิภาพเชิงเทคนิค (technical efficiency)
– เพิ่มประสิทธิภาพในการจัดสรรทรัพยากร (allocative efficiency)
Technical vs. Allocative Efficiency
Pix source: en.wikipedia.org/wiki/
Food-For-Thought
Pix source: online.wsj.com
Pix source: www.wsed.at/en/
“Efficiency is intelligent laziness.” --Anonymous