The average cost-effectiveness ratio (ACER) ACERT= Er Q:So why not just look at the various treatments'ACERs and pick the one with the lowest cost per additional year of life? A:ACERs typically will not reveal all the potentially cost-effective drugs. Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics The average cost-effectiveness ratio (ACER) Q: So why not just look at the various treatments’ ACERs and pick the one with the lowest cost per additional year of life? A: ACERs typically will not reveal all the potentially cost-effective drugs
THE COST EFFECTIVENESS FRONTIER Ch 14 Health technology assessment
Ch 14 | Health technology assessment THE COST EFFECTIVENESS FRONTIER
Cost-effectiveness frontier(CEF) Definition:a subset of treatment strategies for a condition that are not dominated by any other treatment.Any treatment on the CEF is said to be potentially cost-effective. The CEF simplifies comparisons between treatments by allowing analysts to rule out dominated drugs (which should never be used),and focus only on options that potentially cost-effective. Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Cost-effectiveness frontier (CEF) Definition: a subset of treatment strategies for a condition that are not dominated by any other treatment. Any treatment on the CEF is said to be potentially cost-effective. The CEF simplifies comparisons between treatments by allowing analysts to rule out dominated drugs (which should never be used), and focus only on options that potentially cost-effective
Cost-effectiveness frontier(CEF) EX:Consider possible treatment options for the disease“bhtitis”:A,B,C,.,l H 3 c 21 D 1 A E 0 B 100 200 300 $(thousands) ttacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics EX: Consider possible treatment options for the disease “bhtitis” : A, B, C, …, I Cost-effectiveness frontier (CEF)
Cost-effectiveness frontier(CEF) Connect non-dominated options to form CEF H 3 C 2 D A E。 0 100 200 300 $(thousands) Bhattacharya,Hyde and Tu-HealthEconomics
Bhattacharya, Hyde and Tu – Health Economics Cost-effectiveness frontier (CEF) Connect non-dominated options to form CEF