Pharmacoeconomics: Economic Evaluation of Pharmaceuticals

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