An introduction to the concept of Pharmacoeconomics (PE) and its basic study types.

1. Pharmacoeconomics
Introduction
By: Menna Aitta

2. What does PE mean ?
By: Menna Aitta

3. Pharmacoeconomics
is the description and analysis of the costs of drug therapy to the health care systems and society.
It assesses if the added value of a certain intervention is worth the added cost or not not.
If you only consider the costs and the intervention  Cost analysis
If you only consider the outcomes of the medical intervention  Clinical study
But when you put the three aspects into consideration for decision making  Pharmacoeconomic Study
By: Menna Aitta

4. Costs Medical
Intervention
Outcomes
Cost Analysis Clinical Study
Pharmacoeconomic Study
By: Menna Aitta

5. Why is PE important ?
‘What is the juice for the squeeze?’
By: Menna Aitta

6. PE allows the efficient management of limited resources.
• Patient-by-patient Basis  the health care professional can determine the best medication for each patient while bearing in mind the economic considrations.
• Local Patient Groups  Formulary and resource allocation decisions (e.g.,Diabetes- related- emeregency room visits).
• Patient Popoulation  Price negotiation/setting or formulary management at the national level.
By: Menna Aitta

7. What are the basic types of PE studies ?
By: Menna Aitta

8. $
Equivalent
Outcomes
CMA
Cost-Minimization Analysis
Example:
Drug X vs. Drug Y
Two companies selling the same exact drug with the same effect.
CMA necessitates that none of them has an added value over the other.
By: Menna Aitta

9. $
Natural
Outcome
CEA
Cost-Effectivness Analysis
Example:
Diphenhydramune vs. Fexofenadine
Comparing two different antihistaminics agents , in terms of their
clinical effect, by considering symptom free days (SFD) as an outcome.
By: Menna Aitta

10. $ QALYs
CUA
Cost-Utility Analysis
Example:
Comparing chemotherapeutic agents, even of different classes, and
considering the QALYs (Quality-adjusted-life-years) of each.
By: Menna Aitta

11. $
CBA
Cost-Benefit Analysis
Example:
Comaprison of different interventions in different domains with different outcomes.
Comparing the initiation of a vaccination program vs. breast cancer screening program.
$
By: Menna Aitta

12. P.O.C
CMA
Cost-Minimization Analyis
CEA
Cost-Effectivness Analysis
CUA
Cost-Utility Anaysis
CBA
Cost-Benefit Analysis
Input
(Cost)
$ $ $ $
Output
(Outcome) Equivalent Outcome Natural Outcome
e.g. mmHg BP monitoring
QALYs
Quality-adjusted life years
$
Example Drug X vs. Drug Y
Two companies selling the
same exact drug with the
same effect. CMA necessitates
that none of them has an
added value over the other.
Diphenhydramune vs.
Fexofenadine while
considering symptom free
days (SFD) as an outcome.
Comparing chemotherapeutic
agents and considering the
QALY
The cost of adopting an
intervention and considering
the monetary benefit that
would be consequently
resulted
Advantage
Simplest to conduct
Outcomes are easier to
qunatify
More familiar to clinicians
Considers the quality of the
saved life years, not only their
number
Allows the comaprison of
different interventions in
different domains with
different outcomes
Disadvantage Inapplicable when the two
interventions yield different
outcomes
Inapplicable for comparing
drugs in different therapeutic
domains.
(anticoagulants and antidiabetics)
No consensus on utility
measurment
Putting a price tag on health
By: Menna Aitta

13. Resources:
Essentials of Pharmacoeconomics / Karen L. Rascati.—2nd edition. ISBN 978-1-4511-7593-6
By: Menna Aitta