Podcast
Questions and Answers
What does the Incremental Cost-effectiveness Ratio (ICER) measure?
What does the Incremental Cost-effectiveness Ratio (ICER) measure?
- The difference in health outcomes between two interventions
- The total cost of an intervention divided by its effectiveness
- The difference in costs divided by the difference in health outcomes (correct)
- The value of QALYs gained from an intervention
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?
- Valuable interventions will not be adopted.
- It will ensure all interventions are adopted universally.
- It can lead to underfunding of healthcare services.
- It may waste NHS resources on ineffective treatments. (correct)
Why is determining an acceptable maximum value for ICER considered controversial?
Why is determining an acceptable maximum value for ICER considered controversial?
- Because it solely depends on government funding levels.
- Because it is easy to quantify health outcomes reliably.
- Because all countries agree on a standard threshold.
- Due to the many factors influencing health outcomes and budget constraints. (correct)
How can countries establish a baseline value for a QALY?
How can countries establish a baseline value for a QALY?
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?
Flashcards
Incremental Cost-Effectiveness Ratio (ICER)
Incremental Cost-Effectiveness Ratio (ICER)
The difference in costs between two healthcare interventions divided by the difference in their health outcomes (e.g., quality-adjusted life years gained).
Cost-Effectiveness Threshold
Cost-Effectiveness Threshold
The maximum amount a decision-maker is willing to pay for a unit of health gain (e.g., QALY).
Adopting New Interventions
Adopting New Interventions
If the ICER of a new intervention is lower than the accepted cost-effectiveness threshold, the treatment should be adopted.
Factors Influencing Intervention Adoption
Factors Influencing Intervention Adoption
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Per Capita GDP as a Cost-Effectiveness Threshold
Per Capita GDP as a Cost-Effectiveness Threshold
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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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