Pharmacoeconomics Chapter 1

  1. Define Pharmacoeconomics.
    Comparing both:

    • 1) The benefit of one health care intervention (pharma)
    • 2) The cost of providing said intervention (economics)
  2. Define Cost-Minimization Analysis.
    • CMA compares the costs of interventions only.
    • The interventions are assumed to have the exact same outcomes.

    • Example, two generic drug companies make the same generic drug (simvastatin).
    • Since the outcomes of using the same drug are the same, the cost is the only variable between companies.
  3. Define Cost-Effectiveness Analysis
    • CEA measures the outcomes based upon "natural units" (mmHg for BP, HDL for cholesterol, symptom free days)
    • Thus the outcomes for the compared interventions must be the same. (you can't compare a statin to a ACE)
    • Can only take into account one outcome at a time.
  4. Define Cost-Utility Analysis
    • Takes into account the quality of years of extended life by assigning a score to the length of effect of the intervention.
    • A look at both the mortality (extended years of life) and morbidity (quality of each extended year).
  5. Define Cost-Benifit Analysis
    • This CBA assigns a monetary value to the outcomes, so decisions can be made on implementing interventions that have different outcomes.
    • However, it is difficult to assign dollar amounts to health care outcomes.
  6. Define Cost of Illness.
    A combination of:

    • 1) Direct Costs
    • 2) Indirect Costs
  7. Define Direct Costs.
    Costs associated with providing the treatment or prevention of specific intervention. (Rx, hospital costs, doctor visits)
  8. Define Indirect Costs.
    • The costs associated with the loss of productivity due to having a disease or illness.
    • (missing days of work, lost productivity to do work)
Card Set
Pharmacoeconomics Chapter 1
Chapter 1