Pharmacoeconomics Chapter 2

• Medications
• Medication Monitoring
• Medication Administration
• Patient Counseling
• Diagnostic Tests
• Hospitalizations
• ect

• Travel costs to receive health care
• Non-medical assistance related to condition
• Hotel stays for patient and family
• Child care services

• Lost productivity for patient and/or caregiver
• Lost productivity because of premature

• Costs of pain, suffering, anxiety or fatigue that occur because of an illness or the treatment of the illness.
• Ie side effects

• Pain and suffering
• Fatigue
• Anxiety

• Describes whose costs are relevant based upon the purpose of the study.
• Examples:
• Cost to patient
• Cost to hospital
• Cost to society
• Cost to third party payor

Due to inflation, money is "worth more" in the past then it is today. When costs of health care interventions are retrospectively looked at and compared to the cost of interventions in a different year, inflation must be accounted for.

When looking at the future costs of a therapy, again inflation must be accounted for. Since health care costs rise (at a rate of about 5% yearly) a therapy that takes multiple years to complete costs must be adjusted to todays value.

The cost to produce one extra unit of outcome or product.

• Comparing two treatment options with regard to the number needed to treat as being 1 unit.
• (Cost2 - Cost1)/(Effectiveness2 - Effectiveness1)
• Basically the 1/effectiveness is the number of patients needed to treat (aka one unit)