Economic evaluation is the process of systematic identification, measurement and valuation of the inputs and outcomes of two alternative activities, and the subsequent comparative analysis of these. [1] The purpose of economic evaluation is to identify the best course of action, based on the evidence available. It is most commonly employed in the context of health economics and health technology assessment; in the UK, the National Institute for Health and Care Excellence publishes guidelines for the conduct of economic evaluations. [2]
Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and healthcare. In broad terms, health economists study the functioning of healthcare systems and health-affecting behaviors such as smoking.
Health technology assessment is the systematic evaluation of the properties and effects of a health technology, addressing the direct and intended effects of this technology, as well as its indirect and unintended consequences, and aimed mainly at informing decision making regarding health technologies. It has other definitions including "a method of evidence synthesis that considers evidence regarding clinical effectiveness, safety, cost-effectiveness and, when broadly applied, includes social, ethical, and legal aspects of the use of health technologies. The precise balance of these inputs depends on the purpose of each individual HTA. A major use of HTAs is in informing reimbursement and coverage decisions by insurers and national health systems, in which case HTAs should include benefit-harm assessment and economic evaluation." and "a multidisciplinary process that summarises information about the medical, social, economic and ethical issues related to the use of a health technology in a systematic, transparent, unbiased, robust manner. Its aim is to inform the formulation of safe, effective, health policies that are patient focused and seek to achieve best value. Despite its policy goals, HTA must always be firmly rooted in research and the scientific method".
The National Institute for Health and Care Excellence (NICE) is an executive non-departmental public body of the Department of Health in the United Kingdom, which publishes guidelines in four areas:
Economic evaluations can take a number of forms, namely:
Cost-effectiveness analysis (CEA) is a form of economic analysis that compares the relative costs and outcomes (effects) of different courses of action. Cost-effectiveness analysis is distinct from cost–benefit analysis, which assigns a monetary value to the measure of effect. Cost-effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect. Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure and the numerator is the cost associated with the health gain. The most commonly used outcome measure is quality-adjusted life years (QALY).
The Malcolm Baldrige National Quality Award recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence. The Baldrige Award is the only formal recognition of the performance excellence of both public and private U.S. organizations given by the President of the United States. It is administered by the Baldrige Performance Excellence Program, which is based at and managed by the National Institute of Standards and Technology (NIST), an agency of the U.S. Department of Commerce.
The Master of Public Policy (MPP), one of several public policy degrees, is a master's level professional degree that provides training in policy analysis and program evaluation at public policy schools. The MPP program places a focus on the systematic analysis of issues related to public policy and the decision processes associated with them. This includes training in the role of economic and political factors in public decision-making and policy formulation; microeconomic analysis of policy options and issues; resource allocation and decision modeling; cost/benefit analysis; statistical methods; and various applications to specific public policy topics. MPP recipients serve or have served in the public sector, at the international, national, subnational, and local levels.
Cost–benefit analysis (CBA), sometimes called benefit costs analysis (BCA), is a systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings. A CBA may be used to compare completed or potential courses of actions, or to estimate the value against the cost of a decision, project, or policy. It is commonly used in commercial transactions, business or policy decisions, and project investments.
Preventive healthcare consists of measures taken for disease prevention, as opposed to disease treatment. Just as health comprises a variety of physical and mental states, so do disease and disability, which are affected by environmental factors, genetic predisposition, disease agents, and lifestyle choices. Health, disease, and disability are dynamic processes which begin before individuals realize they are affected. Disease prevention relies on anticipatory actions that can be categorized as primal, primary, secondary, and tertiary prevention.
The quality-adjusted life year or quality-adjusted life-year (QALY) is a generic measure of disease burden, including both the quality and the quantity of life lived. It is used in economic evaluation to assess the value for money of medical interventions. One QALY equates to one year in perfect health. If an individual's health is below this maximum, QALYs are accrued at a rate of less than 1 per year. To be dead is associated with 0 QALYs. QALYs can be used to inform personal decisions, to evaluate programs, and to set priorities for future programs.
Allan Steven Detsky is a Canadian physician and health policy expert.
The Centre for Reviews and Dissemination (CRD) is a health services research centre based at the University of York, England. CRD was established in January 1994, and aims to provide research-based information for evidence-based medicine. CRD carries out systematic reviews and meta-analyses of healthcare interventions, and disseminates the results of research to decision-makers in the NHS.
Pharmacoeconomics refers to the scientific discipline that compares the value of one pharmaceutical drug or drug therapy to another. It is a sub-discipline of health economics. A pharmacoeconomic study evaluates the cost and effects of a pharmaceutical product. Pharmacoeconomic studies serve to guide optimal healthcare resource allocation, in a standardized and scientifically grounded manner.
Health services research (HSR) became a burgeoning field in North America in the 1960's, when scientific information and policy deliberation began to coalesce. Also known as health systems research or health policy and systems research (HPSR), is a multidisciplinary scientific field that examines how people get access to health care practitioners and health care services, how much care costs, and what happens to patients as a result of this care. Health Services Research utilizes all qualitative and quantitative methods across the board to ask questions of the healthcare system. It focuses on performance, quality, effectiveness and efficiency of health care services as they relate to health problems of individuals and populations, as well as health care systems. Health Services Research addresses wide-ranging topics of structure, processes, and organization of health care services; their use and people’s access to services; efficiency and effectiveness of health care services; the quality of healthcare services and its relationship to health status, and; the uses of medical knowledge.
Medical technology assessment (MTA) is the objective evaluation of a medical technology regarding its safety and performance, its (future) impact on clinical and non-clinical patient outcomes as well as its interactive effects on economical, organizational, social, juridical and ethical aspects of healthcare. Medical technologies are assessed both in absolute terms and in comparison to other medical technologies, procedures, treatments or ‘doing-nothing’.
David M. Eddy is an American physician, mathematician, and healthcare analyst who has done seminal work in mathematical modeling of diseases, clinical practice guidelines, and evidence-based medicine. Four highlights of his career have been summarized by the Institute of Medicine of the National Academy of Sciences: "more than 25 years ago, Eddy wrote the seminal paper on the role of guidelines in medical decision-making, the first Markov model applied to clinical problems, and the original criteria for coverage decisions; he was the first to use and publish the term 'evidence-based'."
Burton A. Weisbrod is an American economist who pioneered the theory of option value and also advanced methods for benefit-cost analysis of public policy by recognizing the roles of externality effects in program evaluation. He applied those methods to the fields of education, health care, poverty and nonprofit organization. Over a career of fifty years, he published 16 books and over 200 scholarly articles. He is currently the John Evans Professor of Economics and a Faculty Fellow of the Institute for Policy Research at Northwestern University.
Sarah Byford is Professor of Health Economics and Director of King's Health Economics (KHE) at the Institute of Psychiatry, Psychology and Neuroscience. She specializes in the economic evaluation of mental health services and clinical and economic evaluation of complex interventions, including services for children and adolescents.
The Health Intervention and Technology Assessment Program (HITAP) is a semi-autonomous research unit under Thailand’s Ministry of Public Health. It was established in 2007 as a non-profit organization in order to take responsibility for appraising a wide range of health technologies and programs, including pharmaceuticals, medical devices, interventions, individual and community health promotion, and disease prevention as well as social health policy to inform policy decisions in Thailand. HITAP assumes an advisory role to health governmental authorities by providing rigorous scientific evidence through professional assessment of health data in support of public decision-making. These assessments cover a range of topics including system design, selection of technologies for assessment, and the actual assessment of those selected and agreed upon by relevant government agencies. In this effort, HITAP publishes research and studies in the following areas: methodological development, databases and guidelines; knowledge transfer and exchange (KTE) and capacity development; technology assessments on drugs, medical devices, medical procedures, disease prevention and health promotion measures; benefit packages of care – mixing screening and treatments; and other public health policies, e.g. evaluation of Thailand’s government compulsory license policy.
Steven Pearson is an American physician, bioethicist, and the Founder and President of the non-profit health policy and comparative effectiveness research organization Institute for Clinical and Economic Review in Boston, MA. He conducts research on cost-effectiveness analysis and healthcare technology assessment. He is also a lecturer in Harvard's Department of Population Medicine and a member of the National Institutes of Health (NIH) Comparative Effectiveness Research Steering Committee.
The Swedish Agency for Health Technology Assessment and Assessment of Social Services previously the Swedish Council on Health Technology Assessment is an independent Swedish governmental agency tasked with assessing and evaluating methods in use in healthcare och social services. SBU is tasked to summarize and communicate evidence and to be a knowledge center for both healthcare and social services in Sweden. The agency performs review by systematically searching the literature, evaluating, assuring quality, and weighing together results. SBU does not carry out any original research beyond meta-analysis, systematic review or health technology assessment (HTA). It is one of the world's oldest HTA agencies and was early in conducting systematic reviews in 1987.
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