Health Economics and Decision-Making Concepts
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Questions and Answers

What does the standard gamble illustrate regarding decision-making in health outcomes?

  • The indifference point between two health outcomes (correct)
  • The preference for guaranteed health over risky outcomes
  • The exact utility score corresponding to any health decision
  • The importance of time in trade-offs between health states

In the context of the time trade-off, what does the term 'x' represent?

  • Years in optimal health (correct)
  • Years in a poor health state
  • The duration of time traded off
  • The total lifespan of an individual

How is the utility score derived when comparing healthy years to poorer health years?

  • By calculating the average of the years traded
  • By dividing the optimal health equivalent by 20 (correct)
  • By adding the total years in both health states
  • By multiplying the poorer health years by 20

What is the significance of the probabilities in the standard gamble ranging from 0.05 to 0.95?

<p>They indicate the degree of risk in healthcare choices (D)</p> Signup and view all the answers

What key concept is addressed by the time trade-off approach in health economics?

<p>The trade-offs between time and quality of health (C)</p> Signup and view all the answers

What characterizes a normal market?

<p>Complete information about products (C)</p> Signup and view all the answers

In a perfect market, what aspect ensures consumers are not exploited?

<p>Competition among producers (C)</p> Signup and view all the answers

Which of the following is an example of an imperfect market?

<p>Universal health insurance (A)</p> Signup and view all the answers

What is a key feature of health technology?

<p>It includes interventions for various health needs (D)</p> Signup and view all the answers

What is one consequence of price unawareness in an imperfect market?

<p>Potential for monopolistic pricing (C)</p> Signup and view all the answers

What results when equilibrium is met in a perfect market?

<p>Fair pricing for both buyers and sellers (C)</p> Signup and view all the answers

Why are products in a normal market described as homogeneous?

<p>They are substitutable for one another (C)</p> Signup and view all the answers

What is intrinsic to the concept of sovereign consumers in a perfect market?

<p>Freedom to choose based on preferences (C)</p> Signup and view all the answers

What is a characteristic of partial evaluations?

<p>Costs and outcomes are considered separately. (B)</p> Signup and view all the answers

Which of the following is NOT considered in a full evaluation?

<p>Only costs associated with alternatives. (B)</p> Signup and view all the answers

How does a full evaluation differ from a partial evaluation?

<p>It considers all costs and outcomes together. (D)</p> Signup and view all the answers

What is a key requirement for conducting a full evaluation?

<p>Considering the consequences of options. (B)</p> Signup and view all the answers

Which statement about costs in evaluations is true?

<p>Costs must be evaluated with outcomes for full evaluation. (C)</p> Signup and view all the answers

What happens when fewer than two alternatives are considered in an evaluation?

<p>The evaluation is incomplete. (D)</p> Signup and view all the answers

Which of the following is essential for a comprehensive cost analysis?

<p>Combining cost and outcome assessments. (B)</p> Signup and view all the answers

In evaluations, what does efficacy refer to?

<p>The effectiveness of the alternatives evaluated. (A)</p> Signup and view all the answers

What is a major challenge faced in cost-effectiveness analysis?

<p>Inappropriate clinical alternatives (B)</p> Signup and view all the answers

Which method is primarily used to measure outcomes in cost-utility analysis?

<p>Quality Adjusted Life Years (QALYs) (D)</p> Signup and view all the answers

What is the utility score for a patient in perfect health?

<p>1.0 (A)</p> Signup and view all the answers

If a condition has a utility score of 0.3, what does this indicate about the health status?

<p>The patient has frequent severe migraines. (A)</p> Signup and view all the answers

What is the approximate cost per life saved using volunteer paramedics in South Asia?

<p>$128 (D)</p> Signup and view all the answers

What is the focus of cost-minimization analysis?

<p>Comparing costs and outcomes of multiple alternatives (D)</p> Signup and view all the answers

Why is there no standard effectiveness criterion in cost-effectiveness analysis?

<p>Diverse study designs and context (C)</p> Signup and view all the answers

How is a Quality Adjusted Life-Year (QALY) calculated?

<p>Number of life-years gained multiplied by quality of life (C)</p> Signup and view all the answers

Which of the following evaluations is focused on both costs and consequences?

<p>Cost-effectiveness analysis (C)</p> Signup and view all the answers

What does a utility score represent in cost-utility analysis?

<p>The quality of life associated with health states (A)</p> Signup and view all the answers

If a treatment results in better patient outcomes but is more expensive, what must be evaluated?

<p>The relationship between cost and patient outcomes (B)</p> Signup and view all the answers

If a treatment provides 5 more years of life at a utility score of 0.8, what is its QALY impact?

<p>4.0 (C)</p> Signup and view all the answers

What is the utility score associated with daily migraines?

<p>0.5 (B)</p> Signup and view all the answers

Which economic evaluation is concerned with assessing different options based on cost and health outcome improvements?

<p>Cost-effectiveness analysis (D)</p> Signup and view all the answers

How does cost-utility analysis address the quality of life for individuals with chronic diseases?

<p>It may assign lower utility scores to reflect diminished quality of life (B)</p> Signup and view all the answers

What is the approximate cost per life saved using a community-based ambulance in the Middle East and North Africa?

<p>$3,500 (A)</p> Signup and view all the answers

What does a utility score of 0.1 represent?

<p>Coma for one year (D)</p> Signup and view all the answers

In a cost-benefit analysis, how are costs typically evaluated?

<p>In monetary terms reflecting their economic value (B)</p> Signup and view all the answers

How can costs be classified when evaluating health interventions?

<p>Direct, indirect, and intangible costs (D)</p> Signup and view all the answers

Which of the following options is NOT a typical problem identified in cost-effectiveness analysis?

<p>Incomplete patient health records (D)</p> Signup and view all the answers

When comparing two treatments, what would be the QALY for a treatment offering 3 years at perfect health?

<p>3.0 (C)</p> Signup and view all the answers

Which type of evaluation specifically assesses the health outcomes in terms of quality adjusted life years (QALYs)?

<p>Cost-utility analysis (A)</p> Signup and view all the answers

In a cost-utility analysis, if a drug prevents a heart attack giving three additional years at perfect health, what is its utility score?

<p>1.0 (A)</p> Signup and view all the answers

What is a critical feature of economic evaluations in health care?

<p>They compare multiple alternatives based on costs and outcomes (C)</p> Signup and view all the answers

Flashcards

Consequences-only evaluation

A type of evaluation that only considers the consequences or outcomes of a decision, without taking costs into account.

Consequences + Costs evaluation

A type of evaluation that considers the consequences or outcomes of a decision, and the costs involved.

Costs-only evaluation

A type of evaluation that only considers the costs associated with a decision, without considering the consequences or outcomes.

Outcome-only evaluation

A type of evaluation that involves comparing at least two alternatives in terms of their potential outcomes (consequences) but does not consider costs.

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Cost-only evaluation

A type of evaluation that involves comparing at least two alternatives in terms of their costs but does not consider outcomes (consequences).

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Cost-Outcome evaluation

A type of evaluation that involves comparing at least two alternatives in terms of both costs and outcomes.

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Efficacy evaluation

A type of evaluation that involves comparing at least two alternatives based on how effectively they achieve a specific goal or outcome. It considers both costs and consequences.

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Cost analysis

A detailed analysis of the costs associated with an alternative, providing a comprehensive understanding of all expenses involved.

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Cost-minimization analysis

Comparing healthcare options based on the total cost, considering only the cost difference and not benefits. Both options must have the same effectiveness.

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Cost-effectiveness analysis

Comparing healthcare options based on cost per unit of health benefit gained. It measures the cost-effectiveness of an intervention by relating the cost of the intervention to the health outcome achieved.

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Cost-utility analysis

Comparing healthcare options based on cost per unit of quality-adjusted life year (QALY) gained. It takes into account both the quantity and quality of life gained.

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Cost-benefit analysis

Comparing healthcare options based on the net benefit, considering both the costs and benefits. It involves calculating the difference between the monetary value of health benefits and the costs.

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Economic evaluation in health care

Evaluating healthcare interventions by looking at the cost of providing the intervention and the effectiveness of the intervention. effectiveness can be measured in a variety of ways.

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Consequences

The measurable results or outcomes of a healthcare intervention.

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Costs

The resources used to deliver a healthcare intervention.

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Decision matrix

A visual representation of the relationship between costs and benefits of different options.

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What is a 'normal' market?

A market where buyers and sellers have complete information, there are many buyers and sellers, no one can set prices, and products are easily interchangeable.

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What is a perfect market?

A market where the forces of supply and demand are balanced, resulting in an optimal outcome for both buyers and sellers. There is no need for external intervention.

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What is an 'imperfect' market?

A market where the conditions for a perfect market are not met. There may be limited information, few buyers or sellers, or products that are not easily interchangeable.

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What is a 'health technology'?

Any intervention used to promote health, prevent, diagnose or treat disease, rehabilitate, or provide long-term care. Examples include vaccines, CT scanners, medications, surgery, rehabilitation programs, support systems (electronic records), and workplace interventions.

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What is 'health technology assessment'?

A process of evaluating the value of a health technology in terms of its effectiveness, safety, cost-effectiveness, and ethical implications.

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Why is health care often considered an 'imperfect market'?

When a health technology is needed but the costs are high and buyers might lack clear information about the cost, price, or the necessity of the technology.

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What are 'health payers'?

The payment mechanism for health care, including government programs like OHIP and private insurance. These factors can significantly impact the cost of healthcare and access to services.

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Why might a patient be unaware of the price of healthcare services?

The lack of transparency in healthcare pricing can make it difficult for patients to know the true cost of their care. As a result, they are often unaware of potential price differences or the full cost of treatment.

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Standard Gamble

A method for measuring health-related quality of life where participants choose between a gamble with a chance of death and a certain outcome of living with a health condition.

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Utility Score

The point at which a participant is indifferent between a certain outcome of living with a health condition and a gamble with a chance of death or full health. It is represented as a probability, with 1 being perfect health and 0 being death.

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No standard effectiveness criterion

A common issue in cost-effectiveness analysis where studies may use different measures of effectiveness, making direct comparisons challenging.

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Time Trade-Off

A method for measuring health-related quality of life where participants are asked how much time in good health they would trade for a longer duration of a less desirable health state.

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Poorer State of Health

A specific health state, often a chronic condition, that is being compared to a perfect health state using time trade-off analysis.

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Quality-Adjusted Life Years (QALYs)

A measure used in cost-utility analysis to combine the quantity of life (years) with the quality of life experienced by a patient.

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Worse than death?

A specific example highlighting the importance of considering quality of life in healthcare decisions.

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Utility Calculation

A method to convert the time equivalent from a time trade-off analysis into a utility score (ranging from 0 to 1), by dividing the equivalent time in the poorer health state by a reference time period (often 20 years).

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How do you assign a "utility score"?

A key challenge in cost-utility analysis: assigning a numerical value to the subjective quality of life.

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Trained lay-people vs ambulance

A practical application of cost-effectiveness analysis: comparing the cost of different emergency response systems in developing countries.

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Cost per life saved

The cost per life saved using different emergency response methods in developing countries.

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QALY (Quality-Adjusted Life Year)

A measure that combines both the quantity and quality of life years gained from an intervention.

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Duration of life

The time spent in a particular health state or condition.

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Quality of life

A measure of how good or bad a particular health state is, typically rated on a scale from 0 to 1.

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QALY calculation

A measure that combines the duration of life and the quality of life associated with a specific health intervention or condition.

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Common metric for health evaluation

The use of QALYs as a common metric for comparing the effectiveness and cost-effectiveness of different health interventions.

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Comparing treatment options using QALYs

The choice between two treatments based on their respective QALY values. The treatment with the higher QALY value is considered more cost-effective.

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