Incremental Cost-effectiveness Ratio (ICER)

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Questions and Answers

What does the Incremental Cost-effectiveness Ratio (ICER) calculate?

  • The difference in outcomes divided by the difference in costs between alternatives (correct)
  • The average cost per unit of health gained across multiple interventions
  • The effectiveness of a single treatment option
  • The total costs of all treatment options

When should a new intervention be adopted according to its ICER?

  • If the intervention shows a significant improvement in outcomes
  • When the ICER is greater than the acceptable cost-effectiveness threshold
  • Only if the cost of the intervention is reduced
  • When the ICER is less than the acceptable cost-effectiveness threshold (correct)

What does the cost-effectiveness threshold represent?

  • The average cost-effectiveness ratio of all interventions available
  • The maximum cost allowed for any health intervention
  • The overall budget allocated for healthcare interventions
  • The amount a decision maker is willing to spend for each additional year of life gained (correct)

If the ICER of a new treatment is higher than the cost-effectiveness threshold, what decision is typically made?

<p>The treatment should not be adopted (B)</p> Signup and view all the answers

Which of the following is NOT an example of a unit of health gained that could be used in measuring outcomes in ICER?

<p>Cost per hospitalization day (D)</p> Signup and view all the answers

Flashcards

Incremental Cost-Effectiveness Ratio (ICER)

The difference in costs between two healthcare interventions divided by the difference in their health outcomes.

Cost-effectiveness threshold

A value that represents the maximum amount a decision-maker is willing to pay for a unit of improved health.

When to adopt a new intervention

If the cost of a new intervention is less than the maximum acceptable cost for each unit of health gained, then it should be considered for adoption.

Quality-Adjusted Life Year (QALY)

A standard measure of health gain, representing one year of life lived in perfect health.

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Life Year Gained (LYG)

A measure of health gain that considers only the number of years lived, without adjusting for quality of life.

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Study Notes

Incremental Cost-effectiveness Ratio (ICER)

  • ICER measures the difference in costs of different options, divided by the difference in health outcomes (e.g., QALYs, LYGs).

Decision Making with ICER

  • If the ICER of a new intervention is less than the acceptable threshold, it should be adopted.

Cost-Effectiveness Threshold

  • The cost-effectiveness threshold represents the maximum amount a decision-maker is willing to pay for a single unit of health improvement (e.g., a Quality-Adjusted Life Year (QALY) or a Life-Year Gained (LYG)).

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