Cost-Effectiveness Analysis in Health - Peter Muennig - E-Book

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Peter Muennig

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The field's bestselling reference, updated with the latest tools, data, techniques, and the latest recommendations from the Second Panel on Cost-Effectiveness in Health and Medicine Cost-Effectiveness Analysis in Health is a practical introduction to the tools, methods, and procedures used worldwide to perform cost-effective research. Covering every aspect of a complete cost-effectiveness analysis, this book shows you how to find which data you need, where to find it, how to analyze it, and how to prepare a high-quality report for publication. Designed for the classroom or the individual learner, the material is presented in simple and accessible language for those who lack a biostatistics or epidemiology background, and each chapter includes real-world examples and "tips and tricks" that highlight key information. Exercises throughout allow you to test your understanding with practical application, and the companion website features downloadable data sets for students, as well as lecture slides and a test bank for instructors. This new third edition contains new discussion on meta-analysis and advanced modeling techniques, a long worked example using visual modeling software TreeAge Pro, and updated recommendations from the U.S. Public Health Service's Panel on Cost-Effectiveness in Health and Medicine. This is the second printing of the 3rd Edition, which has been corrected and revised for 2018 to reflect the latest standards and methods. Cost-effectiveness analysis is used to evaluate medical interventions worldwide, in both developed and developing countries. This book provides process-specific instruction in a concise, structured format to give you a robust working knowledge of common methods and techniques. * Develop a thoroughly fleshed-out research project * Work accurately with costs, probabilities, and models * Calculate life expectancy and quality-adjusted life years * Prepare your study and your data for publication Comprehensive analysis skills are essential for students seeking careers in public health, medicine, biomedical research, health economics, health policy, and more. Cost-Effectiveness Analysis in Health walks you through the process from a real-world perspective to help you build a skillset that's immediately applicable in the field.

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Table of Contents

Title Page

Copyright

List of Tables, Figures, and Exhibits

Preface

How to Use This Book

A Note on Methods

Acknowledgments

From Peter Muennig

From Mark Bounthavong

About the Authors

Peter Muennig

Mark Bounthavong

Chapter 1: Introduction to Cost-Effectiveness

Learning Objectives

Overview

Why Cost-Effectiveness Is Useful

Elements of Cost-Effectiveness Analysis

The Average and Incremental Cost-Effectiveness Ratio

Why Conduct Cost-Effectiveness Analysis?

The Reference Case Analysis

Cost-Effectiveness Analysis and Policy

Summary

Further Readings

References

Chapter 2: Principles of Cost-Effectiveness Analysis

Learning Objectives

Overview

The Perspective of a Cost-Effectiveness Analysis

Capturing Costs

Capturing Quality

Interpreting the Cost-Effectiveness Ratio

Types of Economic Analysis

Summary

Further Readings

References

Chapter 3: Developing a Research Project

Learning Objectives

Overview

Eight Steps to a Perfect Research Project

Developing a Research Question

Designing Your Analysis

Summary

Further Readings

References

Chapter 4: Working with Costs

Learning Objectives

Overview

Opportunity Costs

Identifying Costs

Micro-Costing and Gross Costing

Getting Cost Data

Using Diagnosis Codes

Adjusting Costs

Costs Associated with Pain and Suffering

Assessing the “Relevancy” of Cost Data

Other Cost Considerations

Summary

Further Readings

References

Chapter 5: Probabilities and Decision Analysis Models

Learning Objectives

Overview

The Idea Behind Decision Analysis

Probabilities

Decision Analysis Models

Summary

Further Reading

References

Chapter 6: Calculating Life Expectancy

Learning Objectives

Overview

Hand-Calculating Years Gained

Calculating Life-Years Lost Using Markov Models

Summary

Further Readings

References

Chapter 7: Working with Health-Related Quality-of-Life Measures

Learning Objectives

Overview

Framework

Deriving HRQL Scores

Other Considerations and Reminders

Using Disability-Adjusted Life-Years

Summary

Further Readings

References

Chapter 8: Calculating QALYs

Learning Objectives

Overview

Using the Summation Method

Using the Life Table Method

More On Discounting

Issues with QALYs

Calculating Incremental Cost-Effectiveness

Disability-Adjusted Life-Year (DALY)

Summary

Further Readings

References

Chapter 9: Conducting a Sensitivity Analysis

Learning Objectives

Overview

Performing a Sensitivity Analysis

Sensitivity Analysis

One-Way Sensitivity Analysis

Two-Way Sensitivity Analysis

Tornado Diagram

Multiway Sensitivity Analysis

Summary

Further Readings

References

Chapter 10: Preparing Your Study for Publication

Learning Objectives

Overview

Content and Structure of Cost-Effectiveness Articles

Title and Abstract

Introduction

Methods

Results

Discussion

Other

Technical Appendix

Figures and Illustrations

Summary

Further Reading

References

Chapter 11: Basic Concepts in Epidemiology and Application to Cost-Effectiveness Analysis

Learning Objectives

Overview

Review of Incidence

Understanding Error

Managing Error in Cost-Effectiveness Analysis

Calculating Weighted Means

Evaluating Study Limitations

Summary

Further Readings

References

Chapter 12: Finding the Data You Need

Learning Objectives

Overview

Finding Data in the Medical Literature

Grading Published Data

Using Electronic Datasets

Data Extraction Tools

Using Unpublished Data

Using Expert Opinion

Organizing Your Data

Summary

Further Readings

References

Chapter 13: A Worked Example

Learning Objectives

Overview

Helping Students Learn

Laboratory Exercise One: Building a Markov Tree

Laboratory Exercise Two: Comparing Interventions

Laboratory Exercise Three: The Cost-Effectiveness of Health Insurance

Laboratory Exercise Four: Sensitivity Analysis

Summary

Appendix A: Answer Key to Exercises

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 11

Chapter 12

Appendix B: Life Expectancy and Quality-Adjusted Life Expectancy Tables

Appendix C: EQ-5D-5L Health Questionnaire (English version for the United States)

Appendix D: Diagnosis, Charges, Medicare Reimbursement, Average Length of Stay, and Cost-to-Charge Ratio by Diagnosis-Related Groups, 2011

Glossary

Index

End User License Agreement

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Guide

Table of Contents

Begin Reading

List of Illustrations

Chapter 1: Introduction to Cost-Effectiveness

Figure 1.1 Example of the Effect of a Health Intervention on the Health States of Patients Admitted to the Emergency Room for an Acute Asthma Attack

Figure 1.2 Components of a Cost-Effectiveness Analysis

Chapter 2: Principles of Cost-Effectiveness Analysis

Figure 2.1 Graphical Representation of an HRQL Score

Figure 2.2 Difference in Total QALYs Between Women Treated and Not Treated for Diabetes over 10 Years

Figure 2.3 Graphical Representation of the Impact of High and Low Numerators and Denominators in Calculating Incremental Cost-Effectiveness Ratios

Chapter 3: Developing a Research Project

Figure 3.1 Flowchart Indicating the Clinical Course of Influenza Illness

Figure 3.2 Flowchart Indicating the Course of Influenza Infection Among Subjects Who Receive a Vaccination

Figure 3.3 Probability of Seeing a Doctor Among Subjects Who Receive Vaccination Versus Those Who Receive Supportive Care

Figure 3.4 Vaccination Strategy Represented with All Probabilities Filled In

Figure 3.5 Vaccination Decision Node

Chapter 4: Working with Costs

Figure 4.1 Partial Flowchart of the Course of the Flu

Figure 4.2 Costs Associated with the “Does Not See Doctor” Box

Chapter 5: Probabilities and Decision Analysis Models

Figure 5.1 Decision Tree for Whether to Pursue Public Health School or Write a Novel

Figure 5.2 Decision Tree with the Potential for Not Finding a Job After Public Health School

Figure 5.3 Example of Two

Mutually Exclusive

Events

Figure 5.4 Probabilities of Outcomes for Patients Receiving the Vaccine Intervention

Figure 5.5 Course of Events During an Influenza Season Among Those Receiving Supportive Care Alone

Figure 5.6 Course of Events During an Influenza Season Among Those Receiving a Vaccination

Figure 5.7 Supportive Care Versus Vaccination Decision (Figure 5.5 and 5.6) Represented as a Decision Analysis Tree

Figure 5.8 Event Pathway for Vaccination Versus Supportive Care Represented as a Decision Analysis Tree

Figure 5.9 The Expected Probability for Each Terminal Node in the Vaccination and Supportive Care Decision Tree

Figure 5.10 The Total Cost for Each Terminal Node in the Vaccination and Supportive Care Decision Tree

Figure 5.11 Expected Costs for Each Terminal Node in the Vaccination and Supportive Care Decision Tree

Figure 5.12 Total Cost and Probability for All Terminal Nodes in the Vaccination and Supportive Care Decision Tree

Figure 5.13 Expected Cost and Outcomes for Each Chance Node in the Vaccinated and Supportive Care Decision Tree

Figure 5.14 Calculation for the Expected Cost and Probability for a Patient Who Receives Supportive Care, Becomes Ill, and Sees Doctor

Figure 5.15 Expected Costs and Outcomes for Different Chance Nodes in the Vaccinated and Supportive Care Decision Tree

Chapter 6: Calculating Life Expectancy

Figure 6.1 Markov Model for Influenza Mortality in 15-Year-Olds

Figure 6.2 Basic Concept of a Markov Model

Figure 6.3 Complete Decision Analysis Tree for Calculating Life Expectancy Using TreeAge Pro

Figure 6.4 A Rolled-Back Model Using the Probability of Death for the General U.S. Population

Chapter 7: Working with Health-Related Quality-of-Life Measures

Figure 7.1 Trade-off Between the Status Quo Health State and a Gamble

Figure 7.2 EQ-5D-5L Form Filled Out by a Patient

Figure 7.3 Diabetes Markov Model Depicting Three Health States: Mild, Moderate, and Severe Diabetes

Chapter 8: Calculating QALYs

Figure 8.1 Year-to-Year Progress of Treated and Untreated Subjects with Leishmaniasis

Figure 8.2 Basic Markov Model Used to Calculate Life Expectancy

Figure 8.3 Markov Models Designed to Calculate the Life Expectancy of Subjects Receiving the Filmore and Reinkenshein Procedures

Figure 8.4 Difference in HRQL Among Subjects Who Received the Filmore or the Reinkenshein Procedure

Figure 8.5 Filmore Versus Reinkenshein Model Rolled Back to Reveal Gains in Quality-Adjusted Life Expectancy Associated with Each Strategy

Figure 8.6 Filmore Versus Reinkenshein Model with Costs Added

Figure 8.7 Filmore Versus Reinkenshein Model with Discounting Added to the HRQL Values

Figure 8.8 Filmore Versus Reinkenshein Model Rolled Back

Chapter 9: Conducting a Sensitivity Analysis

Figure 9.1 Sensitivity Analysis Focusing on Structure for the Vaccine Event Pathway

Figure 9.2 Sensitivity Analysis Focusing on the Parameter Change (Remains Well) for the Vaccine Event Pathway

Figure 9.3 Terminal Branch of the Filmore Arm Represented in Figure 8.3

Figure 9.4 Incremental Effectiveness of the Reinkenshein Procedure Relative to the Filmore Procedure over a Range of Risk Ratios

Figure 9.5 One-Way Sensitivity Analysis Examining How the Cost of Providing the Influenza Vaccine Influences Intervention

Figure 9.6 Two-Way Sensitivity Analysis Comparing Changes in the Efficacy of the Influenza Vaccine and the Incidence of Influenza-Like Illness

Figure 9.7 Tornado Diagram Example

Figure 9.8 Microsimulation of Individual Patients Through a Decision Path

Figure 9.9 Chance of Incurring Any Given Value of a Normally Distributed Variable

Figure 9.10 Diabetes Model in Which Values of Each Variable Are Normally Distributed

Figure 9.11 The Triangular Distribution

Figure 9.12 Other Distributions Used in Monte Carlo Simulations

Figure 9.13 Cost-Effectiveness Plane with a Single Simulation

Figure 9.14 Hypothetical Results of 100 Simulations on the Cost-Effectiveness Plane

Figure 9.15 Cost-Effectiveness Acceptability Curve

Figure 9.16 Cost-Effectiveness Acceptability Curve for Exercises 2 and 3

Chapter 11: Basic Concepts in Epidemiology and Application to Cost-Effectiveness Analysis

Figure 11.1 Nonrandom Error

Figure 11.2 Random Error

Figure 11.3 Graphical Representation of the 100 Cholesterol Values

Figure 11.4 Probability Distribution of the 100 Cholesterol Values

Figure 11.5 Hypothetical Probability Distribution of 1,000 Cholesterol Values

Figure 11.6 The Normal Curve

Figure 11.7 Example of a Triangular Distribution

Figure 11.8 Retrospective Study Designs: Case-Control and Cohort Designs

Figure 11.9 Prospective Study Design

Figure 11.10 Randomized Controlled Trial Study Design

Figure 11.11 Network of Studies Comparing Drugs Directly and Indirectly

Chapter 12: Finding the Data You Need

Figure 12.1 Pyramid Analogy for the Different Levels of Evidence Criteria

Figure 12.2 An Example of a Jadad Score Grading Form

Chapter 13: A Worked Example

Figure 13.1 Starting a New Project in TreeAge Pro

Figure 13.2 Configuring the Model

Figure 13.3 Changing the Calculation Method to Cost-Effectiveness

Figure 13.4 Selecting the Payoffs for a Cost-Effectiveness Analysis

Figure 13.5 Selecting the Number of Payoffs

Figure 13.6 Changing Payoffs Names Under the “Custom Names” Option

Figure 13.7 Numerical Formatting for the Cost-Effectiveness Analysis

Figure 13.8 Saving a New Document in TreeAge Pro as a Package Using the *.trex Extension

Figure 13.9 Adding Two Chance Nodes to the Existing Decision Node

Figure 13.10 Deleting a Branch Using the Table Icons

Figure 13.11 Selecting a Markov Node Using “Change Type” from the Menu

Figure 13.12 Markov Node for a Decision Analysis Model

Figure 13.13 Creating Branches on a Markov Tree

Figure 13.14 Labeling Branches in a Markov Tree

Figure 13.15 Assigning an Initial Probability of 100 Percent to the Alive State in the Markov Model

Figure 13.16 Changing the Node from Chance Node to a Terminal Node

Figure 13.17 Edit Jump State Dialog Box Appears When the Chance Node Is Changed to a Terminal Node

Figure 13.18 Markov Tree After Changing the Remaining Chance Nodes into Terminal Nodes

Figure 13.19 Selecting the Markov Info View in Order to Enter Values

Figure 13.20 Selecting the Markov Info View Using the Icon on the Button Toolbar

Figure 13.21 Markov Info View Dialog Box

Figure 13.22 Setting the Initial and Incremental Rewards

Figure 13.23 Preference Box for the Markov Model

Figure 13.24 Selecting the “Variables/Markov Info” Option from the Tree Preferences Dialog Box

Figure 13.25 Termination Conditions for the Markov Node

Figure 13.26 Setting the Termination Conditions for the Markov Model

Figure 13.27 Creating a New Variable Using the New Variable Dialog Box

Figure 13.28 Assigning a Value to the Variable “age”

Figure 13.29 Defining the Variable “age”

Figure 13.30 Setting the Probability of Die as tdead2000[age], Which Is Derived from an

n ×

2 Matrix Table

Figure 13.31 Layout for Entering Values for a User-Defined Table

Figure 13.32 An Excel Table with the Probabilities of Death Associated with Each Age

Figure 13.33 Entering Values for tdead2000 Table

Figure 13.34 Selecting the Numeric Formatting Preferences from the Edit Menu

Figure 13.35 Changing the Payoff Units for Cost and Effectiveness

Figure 13.36 Overall Illustration of the Markov Model After Parameter Inputs and Unit Changes

Figure 13.37 Results of the Rollback Analysis for the Markov Model

Figure 13.38 Transition State Diagram of a Markov Model with Alive and Dead States

Figure 13.39 Results of Rollback Function

Figure 13.40 U.S. Life Table for Ages 0 to 100 and Over

Figure 13.41 Changing the Initial Cycle's Worth of Reward with the Half-Cycle Correction

Figure 13.42 Rollback Results Using the Half-Cycle Correction on the Initial Effectiveness

Figure 13.43 Opening the Define Initial Reward Window

Figure 13.44 Entering the Half-Cycle Correction into the Markov Information Dialog Box

Figure 13.45 Defining the Termination Condition to an Age That Is 105 Years or Older

Figure 13.46 Rollback Analysis with Half-Cycle Correction and Life Cycle Greater Than 105 Years

Figure 13.47 Selecting and Copying the Subtree

Figure 13.48 Adding a Second Subtree to the Decision Node

Figure 13.49 Multiplying Mortality Probability by a Factor of 1.25 and Capping It at 1

Figure 13.50 Changing Calculation Method from Cost-Effectiveness to Simple Analysis

Figure 13.51 Results of Rollback Between Filmore and Rinkenshein Procedures

Figure 13.52 Modifying the Payoff for a Cost-Effectiveness Analysis

Figure 13.53 Entering a Willingness to Pay of $40,000 per Life-Year Gained

Figure 13.54 Defining the Reward Set in the Initial Stage of the Markov Model

Figure 13.55 Rollback Results Comparing the Filmore and Rinkenshein Procedures

Figure 13.56 Selecting the Rankings from the Analysis Tab

Figure 13.57 Rankings Output Comparing the Cost-Effectiveness of Rinkenshein and Filmore Procedures

Figure 13.58 Insurance Versus No Insurance Competing Alternatives Model

Figure 13.59 Adding Tables Under the Tables View Option

Figure 13.60 Adding a New Table Under the Add/Change Box

Figure 13.61 The New Table, cInsurance, Is Not Listed in the Tables Window

Figure 13.62 Including Values for a User-Defined Table

Figure 13.63 Completed Tables for Costs and HRQL for Those Who Are Insured and Not Insured

Figure 13.64 Changing the Effectiveness Units to “QALYs”

Figure 13.65 Creating a New Variable Called “HR” and Defining Its Value

Figure 13.66 Defining the Value for “age” Under the Variables Properties Window

Figure 13.67 Formula for the Four New Variables

Figure 13.68 Adding the Half-Cycle Correction Factor for the Initial and Final Stages

Figure 13.69 Markov Model Comparing Insured and Uninsured Strategies with the Updated Variables and Tables

Figure 13.70 Rankings Output Comparing Insurance to No Insurance

Figure 13.71 Tree Properties with the Addition of a Discount Rate

Figure 13.72 All the Variables That Are Used in the Current Markov Model

Figure 13.73 Changing the Start Age at the Decision Node

Figure 13.74 Changing the Termination Conditions for the Insurance and No Insurance Arms of the Markov Model

Figure 13.75 One-Way Sensitivity Analysis Setup Window

Figure 13.76 Defining Low and High Values for the HR Parameter

Figure 13.77 Cost-Effectiveness Sensitivity Analysis Output Window

Figure 13.78 Results of the One-Way Sensitivity Analyses

Figure 13.79 Creating a New Distribution Variable

Figure 13.80 Add/Change Distribution Window

Figure 13.81 Assigning a Distribution to the Hazard Ratio Variable

Figure 13.82 Creating Another Distribution Called “dist_cInsur_err” Using a Triangular Distribution

Figure 13.83 Distributions for Three Variables (HR, cInsur, and cNoInsur) in the Model

Figure 13.84 Tree Properties with the Inclusion of Distributions

Figure 13.85 Selecting the Probabilistic Sensitivity Analysis

Figure 13.86 Monte Carlo Simulation Options Window

Figure 13.87 Selecting Incremental CE Ratio Output from the Monte Carlo Simulation Results Window

Figure 13.88 Distributions of ICERs Comparing Insurance Versus No Insurance Varying the Hazard Ratio and Cost Error Terms

Figure 13.89 Selecting the ICER Scatterplot Comparing Insurance to No Insurance

Figure 13.90 ICER Scatterplot Comparing Insurance to No Insurance

Figure 13.91 Proportion of ICER Scatterplots Below the Willingness-to-Pay Threshold of $40,000 per QALY Gained

Figure 13.92 Cost-Effectiveness Acceptability Curve Parameter Window

Figure 13.93 Cost-Effectiveness Acceptability Curves for Insurance and No Insurance

Appendix A: Answer Key to Exercises

Figure A.1 The Rollback Results for the Expected Costs and Outcomes for Vaccinated and Not Vaccinated Strategies

Figure A.2 Markov Model from Chapter 6, Exercise 1

Figure A.3 A Tree Diagram with Rollback Results from TreeAge Pro

Figure A.4 Cost-Effectiveness Acceptability Curve Showing Where the 75 Percent Probability of Cost-Effectiveness Is in Relation to the Willingness-to-Pay Axis

Figure A.5 Using the CDC's Wonder Mortality Database and Selecting Breast Cancer

Figure A.6 Selecting the ICD-10 Code for Breast Cancer

Figure A.7 Results of the Breast Cancer Query Grouped by Gender for 2011

List of Tables

Chapter 1: Introduction to Cost-Effectiveness

Table 1.1 Hypothetical League Table for a Village in Malawi with a $58,000 Health Budget

Chapter 2: Principles of Cost-Effectiveness Analysis

Table 2.1 Costs Included in a Cost-Effectiveness Analysis of Free Contraception, Conducted from Three Perspectives

Table 2.2 Hypothetical Differences in Health-Related Quality of Life over 10 Years for Diabetic Women and Women in Perfect Health

Table 2.3 Decision Matrix for Various Cost-Effectiveness Scenarios

Chapter 4: Working with Costs

Table 4.1 Comparison of Pharmaceutical Benchmark Prices

Table 4.2 Partial List of Costs for Treatment of Influenza Infection

Table 4.3 Common Codes Used to Group Diseases

Table 4.4 MEDPAR Cost Data by DRG for 2011

Table 4.5 Medical Component of the Consumer Price Index 2004–2014, Annual Percentage Change over Previous Year

Table 4.6 Hypothetical and Discounted Costs of a Cohort of 1,000 Elderly Persons over 10 Years

Chapter 5: Probabilities and Decision Analysis Models

Table 5.1 Probabilities and Costs for Vaccinated and Not Vaccinated (Supportive Care) Strategies

Table 5.2 Calculation of Expected Cost for Each Event Pathway for Vaccination and Supportive Care Strategies

Chapter 6: Calculating Life Expectancy

Table 6.1 Number of Deaths due to Influenza Virus Infection, by Age Group

Table 6.2 Deaths, Mean Age of Death due to Influenza Virus Infection, and Life Expectancy for Persons Aged 15 to 65

Table 6.3 Calculating Total Years of Life Lost due to Influenza Virus Infection in the United States

Table 6.4 Total Deaths, Deaths due to Influenza Virus Infection, and Total Survivors in a Cohort of 1 Million 15-Year-Olds

Table 6.5 Total Person-Years Lived by the Cohort of 1 Million 15-Year-Olds

Table 6.6 Person-Years Lived Among the Cohort of 15-Year-Olds, Including and Excluding Deaths due to Influenza Virus Infection

Table 6.7 Age-Specific Mortality Rates, Survivors, and Number of Deaths in the Cohort of 1 Million 15-Year-Old Subjects

Table 6.8 Progression of a Cohort of 10 Women with Breast Cancer over a Six-Year Period

Chapter 7: Working with Health-Related Quality-of-Life Measures

Table 7.1 Example of How an HRQL Score for Influenza Illness May Be Derived Using the EQ-5D

Table 7.2 EQ-5D Preference Score Variation Among Age Categories

Chapter 8: Calculating QALYs

Table 8.1 Total Person-Years Lived by the Cohort of 1 Million 15-Year-Olds

Table 8.2 Sum of Person-Years Across Age Groups for the Cohort of 1 Million 15-Year-Olds

Table 8.3 Calculating Life Expectancy at a Given Age

Table 8.4 Abridged Life Table for 2011

Table 8.5 A Quality-Adjusted Life Table

Chapter 10: Preparing Your Study for Publication

Table 10.1 Simple Summary of Costs Used in a Cost-Effectiveness Model

Table 10.2 Cost-Effectiveness Table

Table 10.3 Example of a Cost-Effectiveness Table

Chapter 11: Basic Concepts in Epidemiology and Application to Cost-Effectiveness Analysis

Table 11.1 Calculating the Incidence Rate of Developing Cancer due to Exposure to Radiation in a Two-Year Observation Period, 2011–2012

Table 11.2 Calculating the Age-Adjusted Mortality Rate Using a Hypothetical U.S. Population

Table 11.3 Frequency Distribution of Hypothetical Cholesterol Values Obtained from 100 Subjects

Chapter 12: Finding the Data You Need

Table 12.1 Datasets Useful for Finding Frequently Needed Cost-Effectiveness Parameters

Chapter 13: A Worked Example

Table 13.1 Results of the Base-Case Analysis

Table 13.2 Age-Indexed Table for Use in the New Tree

Table 13.3 Base-Case Results for the Markov Model

Table 13.4 Base-Case Results After Applying a 3 Percent Discount Rate

Table 13.5 Results After Terminating Calculations at Age 65 or Older

Appendix A: Answer Key to Exercises

Table A.1 Comparison Between Vaccinated and Not Vaccinated Strategies

Table A.2 Markov Model Using a Vaccine Effectiveness of 75 Percent

Appendix B: Life Expectancy and Quality-Adjusted Life Expectancy Tables

Table B.1 Abridged Life Table for the Total Population, United States, 2011

Table B.2 Abridged Quality-Adjusted Life Table for the Total Population, United States, 2011

COST-EFFECTIVENESS ANALYSES IN HEALTH

A PRACTICAL APPROACH

Third Edition

Peter Muennig

Mark Bounthavong

 

 

 

Copyright © 2016 by John Wiley & Sons, Inc. All rights reserved.

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Library of Congress Cataloging-in-Publication Data

Muennig, Peter, author.

Cost-effectiveness analyses in health : a practical approach / Peter Muennig, Mark Bounthavong.—Third edition.

p.; cm.

Includes bibliographical references and index.

ISBN 978-1-119-01126-2 (paper), 978-1-119-01127-9 (epdf ), 978-1-119-01128-6 (epub)

I. Bounthavong, Mark, 1976–, author. II. Title.

[DNLM: 1. Cost-Benefit Analysis—methods. 2. Health Care Costs. 3. Quality of Life. W74.1]

RA410.5

338.4'33621—dc23

2015036511

Cover design: Wiley

Cover image: © ilolab/Shutterstock

THIRD EDITION

LIST OF TABLES, FIGURES, AND EXHIBITS

Tables

1.1 Hypothetical League Table for a Village in Malawi with a $58,000 Health Budget

2.1 Costs Included in a Cost-Effectiveness Analysis of Free Contraception, Conducted from Three Perspectives

2.2 Hypothetical Differences in Health-Related Quality of Life over 10 Years for Diabetic Women and Women in Perfect Health

2.3 Decision Matrix for Various Cost-Effectiveness Scenarios

4.1 Comparison of Pharmaceutical Benchmark Prices

4.2 Partial List of Costs for Treatment of Influenza Infection

4.3 Common Codes Used to Group Diseases

4.4 MEDPAR Cost Data by DRG for 2011

4.5 Medical Component of the Consumer Price Index 2004–2014, Annual Percentage Change over Previous Year

4.6 Hypothetical and Discounted Costs of a Cohort of 1,000 Elderly Persons over 10 Years

5.1 Probabilities and Costs for Vaccinated and Not Vaccinated (Supportive Care) Strategies

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