Econ Exam 2

  1. Cost minimization analysis
    • compare 2 or more alternatives are therapeutically equivalent
    • only costs are compared
  2. areas where CMA may expand
    • mee too products
    • generic competition
    • changes in health care technology
  3. analysis that presents costs and effects in a disaggregated format
    cost-consequence analysis
  4. Advantages of CCA
    • comprehensiveness
    • transparency for decision makers
  5. approaches to conducting pharmacoeconomic studies
    • randomized controll trials
    • decision analysis
    • retrospective claims analysis
  6. decision analysis trees
    • decision analysis decision tree
    • hypothetical decision tree
    • three state markov model
  7. 3 types of nodes in a decison tree
    • decision = square
    • chance = circle
    • end = triangle
  8. 11 questions to apprais study
    • perspective?
    • type?
    • competing alternatives?
    • were relevent costs properly identified?
    • were relevent costs properly measured?
    • were relevan costs properly valued?
    • instruments to measure QoL validated?
    • assumptions and limitations of study?
    • adjusted for time periods?
    • sensitivity analysis?
    • appropriate generalizations?
  9. Total cost
    FC + VC
  10. do not vary when output changes
    • Fixed cost
    • overhead
    • sunk costs
  11. vary directly with amount produced. increase as output increases
    varied cost
  12. cost of holding a capital good for a specific period of time depends on
    depreciation and opportunity costs
  13. extra or additional cost of producing one extra unit of output
    marginal cost
  14. additional output from the successive increas of one input will eventually deminish when other inputs are held constant
    law of diminishing return
  15. Marginal cost graph
    • falls at first then rises as output rises
    • u shaped curve
  16. Minimum point
    • MC = AC
    • profit is highest at this point
  17. when MC is below AC
    it pulls AC down
  18. when mc is above ac
    it pulls ac up
  19. factors that creat need for close monitering of value of pharmaceuticals
    • increased cost of drugs
    • increased number of treatment alternatives
    • growing demand for drugs
    • intro of high cost bio-tech drugs
  20. where is pharmacoeconomics used? (7)
    • formulary
    • treatment guidlines
    • disease management programs
    • PA policies
    • step-therapy programs
    • benefit programs
    • health policies
  21. framework that guides approach to a range of activitiesin the HC field
    Health policy
  22. Three levels of Health policy development
    • health policy
    • health care system
    • point of health care delivery
Card Set
Econ Exam 2
critical appraisal and application of pharmacoeconomics