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Use of Cost-Effectiveness Analysis in Health-Care Resource Allocation Decision-Making: How Are Cost-Effectiveness Thresholds Expected to Emerge?
- Source :
- Value in Health. 7:518-528
- Publication Year :
- 2004
- Publisher :
- Elsevier BV, 2004.
-
Abstract
- Background An increasing number of health-care systems, both public and private, such as managed-care organizations, are adopting results from cost-effectiveness (CE) analysis as one of the measures to inform decisions on allocation of health-care resources. It is expected that thresholds for CE ratios may be established for the acceptance of reimbursement or formulary listing. Objective This paper provides an overview of the development of and debate on CE thresholds, reviews threshold figures (i.e., cost per unit of health gain) currently proposed for or applied to resource-allocation decisions, and explores how thresholds may emerge. Discussion At the time of this review, there is no evidence from the literature that any health-care system has yet implemented explicit CE ratio thresholds. The fact that some government agencies have utilized results from CE analysis in pricing/reimbursement decisions allows for retrospective analysis of the consistency of these decisions. As CE analysis becomes more widely utilized in assisting health-care decision-making, this may cause decision-makers to become increasingly consistent. Conclusions When CE analysis is conducted, well-established methodology should be used and transparency should be ensured. CE thresholds are expected to emerge in many countries, driven by the need for transparent and consistent decision-making. Future thresholds will likely be higher in most high-income countries than currently cited rules of thumb.
- Subjects :
- Health Care Rationing
Actuarial science
Cost effectiveness
business.industry
Cost-Benefit Analysis
Health Policy
thresholds
Public Health, Environmental and Occupational Health
Cost-effectiveness analysis
Efficiency, Organizational
health care
decision making
Rule of thumb
efficiency
Transparency (graphic)
Health care
Economics
health economics
Humans
Resource allocation
Formulary
business
cost-effectiveness
Decision Making, Organizational
Reimbursement
Subjects
Details
- ISSN :
- 10983015
- Volume :
- 7
- Database :
- OpenAIRE
- Journal :
- Value in Health
- Accession number :
- edsair.doi.dedup.....310dfa4dc61ef50d4ed1c6e3ae5cbea4