This document discusses outcomes research, health economics, and pharmacoeconomics. It begins by defining outcomes research as the study of the end results of medical interventions to see if they improve patient health and well-being. It then discusses how outcomes research focuses on themes like quality of life, effectiveness, and guidelines. Health economics is introduced as concerned with efficiency, value, and behavior in healthcare production and consumption. The document outlines key concepts in health economics like efficiency, equity, utility, cost, and marginal costs and benefits. Finally, pharmacoeconomics is positioned as a sub-discipline of health economics dealing with the economic relationships of drug research, production, and pricing.

1. PHARMACOECONOMICS
OUTCOMES, HEALTH
ECONOMICS &
PHARMACONOMICS
By:
Ms. Khan Dureshahwar M. Pharm (PhD)
Assistant Professor
Dept of Pharmacology

2. OUTCOMES
Outcomes research is the study of end results of medical
interventions --
--does the heath care intervention improve
the health and well being of patients and
populations?
 It emerges from a growing concern about which medical
treatments work best and for whom

3. OUTCOMES RESEARCH FOCUSES ON THEMES OF:
 Health Related Quality of Life (HRQoL)
 Patient Reported Outcomes (PRO)
 Effectiveness,
 Quality of care,
 Health status screening,
 Diagnostic tests,
 Medical treatment,
 Procedures and practices,
 Guidelines and healthcare policy.

4. OUTCOMES RESEARCH DATA IS USEFUL FOR:
 Regulators,
 Policy makers,
 Researchers
 Other stakeholders
For setting national policy, designing drug formulary and
drafting pharmacoeconomics guidelines.

5. There is a tremendous need to develop the outcomes research
guidelines for India.
 The outcomes research studies are carried out in the form of
randomized control trials (RCT), cohort studies, case control
studies, meta-analyses and systematic reviews.
 These studies are based on the Clinical, Economic and
Humanistic Outcomes (ECHOs).
OUTCOME RESEARCH IN INDIA:

6.  For example cure, survival, etc are clinical outcomes;
expenses, savings, etc are economic outcomes
while role physical, emotional wellbeing, etc are humanistic
outcomes.
 Patient-Reported Outcomes (PRO) is the status of individual
patient’s health status which is directly obtained from the
patients without elucidation of the patient’s response by
physicians or any other healthcare professionals.

7.  To understand how the factors plays a role in Outcomes of
care or the ultimate health status of the patient there is
requirement of collaboration among a broad range of health
service researchers such as Physicians, Nurses, Economists,
Sociologists, Political Scientists, Operation Researchers,
Biostatisticians and Epidemiologists.

8. HEALTH ECONOMICS
 Health economics is a branch of economics concerned with
issues related to efficiency, effectiveness, value and behavior in
the production and consumption of health and healthcare.
 Health economists evaluate multiple types of financial
information: costs, charges and expenditures.

9. HEALTH ECONOMICS CONCERNS:
 Quantification of the resources used in health service
delivery over a period of time
 Efficiency with which resources are allocated and used for
health purposes
 Effect of various health services upon health and well-
being of the population

10. IMPORTANCE
 To formulate health services
 To establish true costs of delivering health care
 To evaluate the relative costs and benefits of particular
policy options
 To estimate the effects of certain economic variables on the
utilization of health services

11. ECONOMIC GOODS IN HEALTH CARE
 Health and medical care
 Health as a private or a public good
 Measurement of health
 Investment aspects of healthcare industry
 Burden of diseases
 Effect of healthcare provision
 Choice of technology in healthcare system

12. BASIC CONCEPTS IN HEALTH ECONOMICS
 Concept of Efficiency
 Concept of Equity
 Concept of Utility & Cost
 Concept of Opportunity Cost
 Concept of Marginal Cost & benefit

13. CONCEPT OF EFFICIENCY
Effeciency means
1. Doing things right (Technical efficiency and cost-effectiveness
2. Doing the things right (Allocative efficiency)
Three main elements :
1. Do not waste resources
2. Produce each output at low cost
3. Produce the types and amounts of output which people value
the most

14. CONCEPT OF EQUITY
Equity stands for social justice and fairness

15. CONCEPT OF UTILITY & COST
UTILITY is the economic term for satisfaction obtained from
purchasing a particular good and service
COST originates from constraints on our resources
Economic resources are allocated according to a PRICE
system

16. CONCEPT OF OPPORTUNITY COST, MARGINAL
COST & BENEFIT
OPPORTUNITY COST of a commodity is the value of the
best alternative use to which those resources could have been
put
MARGINAL COST is considered as additional cost incurred
in producing the last (or next) unit of the output
MARGINAL BENEFIT is the additional benefit obtained by
consuming the last (next) unit of output

17. ECONOMIC ANALYSIS
 Cost Effective Analysis (CEA)
 Cost Utility Analysis (CUA)
 Cost benefit Analysis (CBA)

23. Demand
Supply
SUPPLY AND DEMAND

24. PHARMACOECONOMICS
 It is a sub-discipline of Health economics.
 The economic relationship associated with drug research,
production, distribution, storage and pricing of drug is well
described by pharmacoeconomics.
 All sectors involved in pharmaceuticals are regulated by
and under the influence of pharmacoeconomics.

25. WHY PHARMACOECONOMICS NEEDED?

26.  A pharmacoeconomic study evaluates the cost (expressed in
monetary terms) and effects (expressed in terms of monetary
value, effectiveness, efficacy or enhanced quality of life) of a
pharmaceutical product.
 Most healthcare services in developing countries are provider-
driven, in the sense that people have little role in their healthcare
decision-making process.
 However, this scenario is changing in developing
countries where empowerment of people in terms of wealth and
education, is increasing.

27.  Although the government pays for approximately 20% of
drugs used in India, private out-of-pocket expenditure in India
on health-care is one of the highest in the world.
 Preparing pharmacoeconomics guidelines will be an
important step in order to establish health technology assessment
(HTA) in India.
It is a big capacity building challenge for central and state
governments to provide high quality health-care without
financial hardship on the healthcare seekers.

28. Cost utility analysis an important economic tool of
Pharmacoeconomics is widely being used and adopted by the
developed countries.
 With the changes in health care needs, Pharmacoeconomics is
must, as it plays a prominent role in health policy decision
making.