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The Value of Knowing and Knowing the Value:
Improving the Health Technology Assessment of
Complementary Diagnostics
Lou Garrison*, Jorge Mestre-Ferrandiz and Bernarda Zamora**; *University of
Washington **Office of Health Economics
Contact details: jmestre-ferrandiz@ohe.org
1. BACKGROUND
• Two developments related to medical diagnostics motivate
this work:
• 1) a growing recognition that medical diagnostics are used
in a range of clinically different applications, and
• 2) a growing appreciation that the traditional framework
and metrics applied in the HTA of medicines and devices
may overlook or undervalue important elements of value
provided by diagnostics—in particular, value related the
diagnostic information itself
• We focus: “complementary diagnostics” - no generally
accepted or official definition of complementary diagnostics
• We build on existing ones
• Recognising that (1) predicting disease progression (i.e.,
prognostic use) is a diagnostic application, and (2) viewing
companion diagnostics as a subset of complementary
diagnostics
Acknowledgements
The study was supported by EPEMED. We acknowledge the feedback from the different members of the
Steering Group, as well as by Prof Adrian Towse and Prof Mike Drummond.
(Selected) References
Academy of Medical Sciences, 2013. 'Realising the potential of stratified
medicine
Asch, D., J. Patton, and J. Hershey, 1990. Knowing for the sake of
knowing: the value of prognostic information, Medical Decision Making 10,
pp. 47-57
Garau, M., A. Towse, L. Garrison, L. Housman, and D. Ossa, 2013. Can
and should value-based pricing be applied to molecular diagnostics?,
Personalized Medicine 10(1), pp. 61-72
Towse, A. and L. P. Garrison, Jr., 2013. Economic incentives for evidence
generation: promoting an efficient path to personalized medicine, Value
Health 16(6 Suppl), pp. S39-43
2. AIMS
1. To identify the currently applied practices by HTA bodies for
complementary diagnostics, identify the gaps and
deficiencies, and propose recommendations to improve such
practices
2. To review, in particular, approaches for addressing the lack
of attention in current applied HTA practices to measuring
the value of knowing (or of greater certainty) delivered by
diagnostics
3. METHODS
Two steps:
1. Systematic literature review which summarises different
proposed value frameworks and specific valuations for
complementary diagnostics
2. Health economic evaluation of three complementary
diagnostics presented by two HTA agencies (NICE, HAS),
where available
4.RESULTS
5. POLICY RECOMMENDATIONS
Change in evidentiary requirements:
• Evidence of clinical utility: more comprehensive
perspective
• Source of evidence: assess the use of “coverage with
evidence development” agreements
Change in the reimbursement to value-based pricing:
• Reimbursement of complementary diagnostics should
account for the all the elements of value
• Cost-effectiveness can be adapted and/or augmented to
consider additional elements of value - contingent
valuation of other specific elements such as the value of
reducing uncertainty or the value of hope
• Explore how to divide the value (between diagnostic and
therapy, when there is one) to promote dynamic efficiency
Incentives to uptake of complementary diagnostics
• Monitor the uptake of complementary diagnostics, with
routine collection and publication of data
• Ongoing, repeated validation of diagnostics, leveraging
technological enhancements
Equity issues
• Measure barriers and challenges across EU
• Understand the implications of the different perspectives
(health care or societal) on HTA processes
6. CONCLUSION
• The full value that well-validated complementary
diagnostics can bring to patient care is underappreciated in
healthcare systems around the world
• A comprehensive consideration of these distinct elements
of value is a prerequisite to the realisation of the promise
of personalised medicine
• As healthcare systems evolve more accountability for
outcomes and move to value-based reimbursement, the
framework described here should provide a sounder basis
for the HTA of complementary diagnostics as well as for
appropriate reimbursement and rewards for innovation
Elements of value for complementary diagnostics
Light blue circle:
traditional elements of
value as considered by
HTA
Dark blue circle:
expanded value
framework: elements
not traditionally
considered/measured
Blue line: value from
health system
perspective
Red line: value also
included in societal
perspective
• Ten elements of value for complementary diagnostics:
largely independent and additive, and aggregable at a
societal level
• However, distinct conceptual measures could be
measured with the same instrument
• Any specific assessment of value should not double-count
effects
• Questions about the weighting, measurability, and
commensurability of the elements are separate issues,
and are not addressed in this White Paper
• Identified several other, less recognised, elements related
to the value of information
• Can apply to medical technologies more generally and
may not be as closely linked to diagnostics as is the
reduction in uncertainty apparent with companion
diagnostics

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The Value of Knowing and Knowing the Value: Improving the Health Technology Assessment of Complementary Diagnostics

  • 1. The Value of Knowing and Knowing the Value: Improving the Health Technology Assessment of Complementary Diagnostics Lou Garrison*, Jorge Mestre-Ferrandiz and Bernarda Zamora**; *University of Washington **Office of Health Economics Contact details: jmestre-ferrandiz@ohe.org 1. BACKGROUND • Two developments related to medical diagnostics motivate this work: • 1) a growing recognition that medical diagnostics are used in a range of clinically different applications, and • 2) a growing appreciation that the traditional framework and metrics applied in the HTA of medicines and devices may overlook or undervalue important elements of value provided by diagnostics—in particular, value related the diagnostic information itself • We focus: “complementary diagnostics” - no generally accepted or official definition of complementary diagnostics • We build on existing ones • Recognising that (1) predicting disease progression (i.e., prognostic use) is a diagnostic application, and (2) viewing companion diagnostics as a subset of complementary diagnostics Acknowledgements The study was supported by EPEMED. We acknowledge the feedback from the different members of the Steering Group, as well as by Prof Adrian Towse and Prof Mike Drummond. (Selected) References Academy of Medical Sciences, 2013. 'Realising the potential of stratified medicine Asch, D., J. Patton, and J. Hershey, 1990. Knowing for the sake of knowing: the value of prognostic information, Medical Decision Making 10, pp. 47-57 Garau, M., A. Towse, L. Garrison, L. Housman, and D. Ossa, 2013. Can and should value-based pricing be applied to molecular diagnostics?, Personalized Medicine 10(1), pp. 61-72 Towse, A. and L. P. Garrison, Jr., 2013. Economic incentives for evidence generation: promoting an efficient path to personalized medicine, Value Health 16(6 Suppl), pp. S39-43 2. AIMS 1. To identify the currently applied practices by HTA bodies for complementary diagnostics, identify the gaps and deficiencies, and propose recommendations to improve such practices 2. To review, in particular, approaches for addressing the lack of attention in current applied HTA practices to measuring the value of knowing (or of greater certainty) delivered by diagnostics 3. METHODS Two steps: 1. Systematic literature review which summarises different proposed value frameworks and specific valuations for complementary diagnostics 2. Health economic evaluation of three complementary diagnostics presented by two HTA agencies (NICE, HAS), where available 4.RESULTS 5. POLICY RECOMMENDATIONS Change in evidentiary requirements: • Evidence of clinical utility: more comprehensive perspective • Source of evidence: assess the use of “coverage with evidence development” agreements Change in the reimbursement to value-based pricing: • Reimbursement of complementary diagnostics should account for the all the elements of value • Cost-effectiveness can be adapted and/or augmented to consider additional elements of value - contingent valuation of other specific elements such as the value of reducing uncertainty or the value of hope • Explore how to divide the value (between diagnostic and therapy, when there is one) to promote dynamic efficiency Incentives to uptake of complementary diagnostics • Monitor the uptake of complementary diagnostics, with routine collection and publication of data • Ongoing, repeated validation of diagnostics, leveraging technological enhancements Equity issues • Measure barriers and challenges across EU • Understand the implications of the different perspectives (health care or societal) on HTA processes 6. CONCLUSION • The full value that well-validated complementary diagnostics can bring to patient care is underappreciated in healthcare systems around the world • A comprehensive consideration of these distinct elements of value is a prerequisite to the realisation of the promise of personalised medicine • As healthcare systems evolve more accountability for outcomes and move to value-based reimbursement, the framework described here should provide a sounder basis for the HTA of complementary diagnostics as well as for appropriate reimbursement and rewards for innovation Elements of value for complementary diagnostics Light blue circle: traditional elements of value as considered by HTA Dark blue circle: expanded value framework: elements not traditionally considered/measured Blue line: value from health system perspective Red line: value also included in societal perspective • Ten elements of value for complementary diagnostics: largely independent and additive, and aggregable at a societal level • However, distinct conceptual measures could be measured with the same instrument • Any specific assessment of value should not double-count effects • Questions about the weighting, measurability, and commensurability of the elements are separate issues, and are not addressed in this White Paper • Identified several other, less recognised, elements related to the value of information • Can apply to medical technologies more generally and may not be as closely linked to diagnostics as is the reduction in uncertainty apparent with companion diagnostics