Pharmacoeconomics: Economic Evaluation of Pharmaceuticals

Study Notes

Pharmacoeconomics

Definition: The study of the economic evaluation of pharmaceuticals and healthcare interventions
Goals:
- To determine the value of a pharmaceutical or healthcare intervention in terms of its costs and benefits
- To inform decision-making about the allocation of healthcare resources
Types of economic evaluation:
- Cost-minimization analysis (CMA): compares the costs of different interventions with similar outcomes
- Cost-benefit analysis (CBA): compares the costs and benefits of an intervention in monetary terms
- Cost-effectiveness analysis (CEA): compares the costs and outcomes of an intervention in terms of a specific health outcome
- Cost-utility analysis (CUA): compares the costs and outcomes of an intervention in terms of quality-adjusted life years (QALYs)
Key concepts:
- Opportunity cost: the value of the next best alternative forgone when a resource is used
- Incremental analysis: compares the costs and benefits of an intervention to the next best alternative
- Sensitivity analysis: examines how changes in variables affect the results of an economic evaluation

Healthcare Systems

Definition: The organization and delivery of healthcare services to a population
Types of healthcare systems:
- National Health Service (NHS) model: publicly funded and provided healthcare services
- Social health insurance model: publicly funded healthcare services with private providers
- Private insurance model: privately funded healthcare services with private providers
Key components:
- Financing: how healthcare services are paid for
- Delivery: how healthcare services are provided
- Access: who has access to healthcare services
- Quality: the quality of healthcare services
Healthcare systems in different countries:
- USA: mixed model with private insurance and public programs (e.g. Medicare, Medicaid)
- UK: NHS model with publicly funded and provided healthcare services
- Canada: publicly funded healthcare services with private providers

Healthcare Policy

Definition: Laws, regulations, and guidelines that shape the healthcare system
Goals:
- To improve healthcare outcomes and quality
- To increase access to healthcare services
- To control healthcare costs
Key concepts:
- Policy cycle: the process of developing, implementing, and evaluating healthcare policy
- Stakeholders: individuals and groups affected by healthcare policy
- Policy instruments: tools used to implement healthcare policy (e.g. laws, regulations, guidelines)
Healthcare policy issues:
- Universal healthcare access
- Healthcare financing and funding
- Pharmaceutical pricing and reimbursement
- Healthcare workforce and education
Healthcare policy analysis:
- Descriptive analysis: describes the current healthcare policy and its effects
- Evaluative analysis: evaluates the effectiveness of healthcare policy
- Prescriptive analysis: recommends changes to healthcare policy

Pharmacoeconomics

Studies the economic evaluation of pharmaceuticals and healthcare interventions to determine their value in terms of costs and benefits
Goals: inform decision-making about the allocation of healthcare resources and determine the value of interventions
Types of economic evaluation:
- Cost-minimization analysis (CMA): compares costs of interventions with similar outcomes
- Cost-benefit analysis (CBA): compares costs and benefits in monetary terms
- Cost-effectiveness analysis (CEA): compares costs and outcomes in terms of a specific health outcome
- Cost-utility analysis (CUA): compares costs and outcomes in terms of quality-adjusted life years (QALYs)

Key Concepts

Opportunity cost: the value of the next best alternative forgone when a resource is used
Incremental analysis: compares costs and benefits of an intervention to the next best alternative
Sensitivity analysis: examines how changes in variables affect the results of an economic evaluation

Healthcare Systems

Organizes and delivers healthcare services to a population
Types:
- National Health Service (NHS) model: publicly funded and provided healthcare services
- Social health insurance model: publicly funded healthcare services with private providers
- Private insurance model: privately funded healthcare services with private providers
Key components:
- Financing: how healthcare services are paid for
- Delivery: how healthcare services are provided
- Access: who has access to healthcare services
- Quality: the quality of healthcare services

Healthcare Systems Around the World

USA: mixed model with private insurance and public programs (e.g. Medicare, Medicaid)
UK: NHS model with publicly funded and provided healthcare services
Canada: publicly funded healthcare services with private providers

Healthcare Policy

Laws, regulations, and guidelines that shape the healthcare system
Goals:
- Improve healthcare outcomes and quality
- Increase access to healthcare services
- Control healthcare costs
Key concepts:
- Policy cycle: developing, implementing, and evaluating healthcare policy
- Stakeholders: individuals and groups affected by healthcare policy
- Policy instruments: tools used to implement healthcare policy (e.g. laws, regulations, guidelines)

Healthcare Policy Issues

Universal healthcare access
Healthcare financing and funding
Pharmaceutical pricing and reimbursement
Healthcare workforce and education

Healthcare Policy Analysis

Descriptive analysis: describes the current healthcare policy and its effects
Evaluative analysis: evaluates the effectiveness of healthcare policy
Prescriptive analysis: recommends changes to healthcare policy

Description

Learn about pharmacoeconomics, a field that evaluates the economic value of pharmaceuticals and healthcare interventions. This includes cost-benefit analysis and cost-minimization analysis to inform healthcare resource allocation.