Podcast
Questions and Answers
What does the Incremental Cost-effectiveness Ratio (ICER) measure?
What does the Incremental Cost-effectiveness Ratio (ICER) measure?
What is the potential consequence of setting the cost-effectiveness threshold too high?
What is the potential consequence of setting the cost-effectiveness threshold too high?
Why is determining an acceptable maximum value for ICER considered controversial?
Why is determining an acceptable maximum value for ICER considered controversial?
How can countries establish a baseline value for a QALY?
How can countries establish a baseline value for a QALY?
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If a government bases its health spending threshold on per capita GDP, what does this imply?
If a government bases its health spending threshold on per capita GDP, what does this imply?
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Study Notes
Incremental Cost-Effectiveness Ratio (ICER)
- ICER is the difference in costs between alternatives divided by the difference in outcomes measured
- If the ICER of a new intervention is less than the acceptable cost-effectiveness threshold, the treatment should be adopted
Cost-Effectiveness Threshold
- The cost-effectiveness threshold is the value a decision-maker is willing to pay for a unit of health gained (e.g., QALY or LYG)
- A high threshold leads to inefficient NHS resource use
- A low threshold may prevent adoption of valuable interventions
Factors Affecting ICER Threshold
- The condition and population receiving the intervention
- The intervention's innovation
- Uncertainty in ICER calculations (data source issues)
- Defining an acceptable threshold is complex and debatable
Valuing a QALY or LYG
- Determining the worth of an extra QALY or LYG is a value judgment
- Public and patient willingness to pay for avoiding unfavorable outcomes can inform judgments
- Setting thresholds: benchmarks from interventions (e.g., coronary bypass grafting) can establish a baseline
- Some countries use a per capita GDP threshold for cost-effectiveness
Per Capita GDP as a Threshold
- Per capita GDP represents a fair share of national wealth
- It could act as a maximum expenditure for health gains per individual per year
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Description
Explore the concepts of Incremental Cost-Effectiveness Ratio (ICER) and cost-effectiveness thresholds in health economics. This quiz delves into the factors that influence ICER calculations and the valuation of health outcomes like Quality-Adjusted Life Years (QALY) and Life Years Gained (LYG). Understand how these concepts impact decision-making in healthcare interventions.
