This is the text extract for PHARMAC Forum 09 - Demystifying Cost-Utility Analysis.PPT, browse documents here.

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Demystifying Cost-Utility Analysis

Rico Schoeler

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Which one?

A major breakthrough in treating bowel cancer for 50 people A new diabetes treatment (20,000 people), less side effects than existing options A new treatment for heart disease (200) with uncertain benefits after 5 years

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CUA helps with these decisions

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An assessment tool An input to decisions, not the answer One part of our analysis (9 Decision Criteria are used) A way of looking at the benefits and costs of medicines Allows us to compare the value of different funding options

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Making careful choices

Treatment A

Benefits Costs

Benefits

Treatment B

Costs

Time

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The big picture

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Assessing health benefits

Open minded to all evidence Benefits & limitations How does it compare? High input from expert clinicians – PTAC…

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Quality of life

Quantity of life – how long? Quality of life – how well? International & NZ data to score illness & impact

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QALY - a measure of changes in health

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Health sector costs & savings

Cost of medicine Other health sector costs Cost savings – shorter hospital stays? Costs to patients

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Putting it all together

Do benefits last forever? Future prices Risks Depth of analysis

Sensitivity to uncertainties

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The big picture

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In practice, CUA …

Uses relative value to inform our decision-making on the best funding options.

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Some common questions

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Do you consider savings to the health sector? Do you consider ‘return to work’ benefits? Is there a funding threshold? Why do some effective medicines not get funded? Are life-extending medicines favoured over life-improving medicines? Does the population size for treatment matter?

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