How to assess the value of medicines?
This study aims to discuss approaches to assessing the value of medicines. Economic evaluation assesses value by means of the incremental cost-effectiveness ratio (ICER). Health is maximised by selecting medicines with increasing ICERs until the budget is exhausted. The budget size determines the va...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2010-09-01
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| Series: | Frontiers in Pharmacology |
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| Online Access: | http://journal.frontiersin.org/Journal/10.3389/fphar.2010.00115/full |
| _version_ | 1819267426302296064 |
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| author | Steven Simoens |
| author_facet | Steven Simoens |
| author_sort | Steven Simoens |
| collection | DOAJ |
| description | This study aims to discuss approaches to assessing the value of medicines. Economic evaluation assesses value by means of the incremental cost-effectiveness ratio (ICER). Health is maximised by selecting medicines with increasing ICERs until the budget is exhausted. The budget size determines the value of the threshold ICER and vice versa. Alternatively, the threshold value can be inferred from pricing/reimbursement decisions, although such values vary between countries. Threshold values derived from the value-of-life literature depend on the technique used. The WHO has proposed a threshold value tied to the national GDP. As decision makers may wish to consider multiple criteria, variable threshold values and weighted ICERs have been suggested. Other approaches (i.e. replacement approach, program budgeting and marginal analysis) have focused on improving resource allocation, rather than maximising health subject to a budget constraint. Alternatively, the generalised optimisation framework and multi-criteria decision analysis make it possible to consider other criteria in addition to value. |
| first_indexed | 2024-12-23T21:16:59Z |
| format | Article |
| id | doaj.art-96e44bdc68c840ff8d8318177685203f |
| institution | Directory Open Access Journal |
| issn | 1663-9812 |
| language | English |
| last_indexed | 2024-12-23T21:16:59Z |
| publishDate | 2010-09-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Pharmacology |
| spelling | doaj.art-96e44bdc68c840ff8d8318177685203f2022-12-21T17:30:52ZengFrontiers Media S.A.Frontiers in Pharmacology1663-98122010-09-01110.3389/fphar.2010.001152110How to assess the value of medicines?Steven Simoens0University of Leuven (K.U.Leuven)This study aims to discuss approaches to assessing the value of medicines. Economic evaluation assesses value by means of the incremental cost-effectiveness ratio (ICER). Health is maximised by selecting medicines with increasing ICERs until the budget is exhausted. The budget size determines the value of the threshold ICER and vice versa. Alternatively, the threshold value can be inferred from pricing/reimbursement decisions, although such values vary between countries. Threshold values derived from the value-of-life literature depend on the technique used. The WHO has proposed a threshold value tied to the national GDP. As decision makers may wish to consider multiple criteria, variable threshold values and weighted ICERs have been suggested. Other approaches (i.e. replacement approach, program budgeting and marginal analysis) have focused on improving resource allocation, rather than maximising health subject to a budget constraint. Alternatively, the generalised optimisation framework and multi-criteria decision analysis make it possible to consider other criteria in addition to value.http://journal.frontiersin.org/Journal/10.3389/fphar.2010.00115/fullthresholdeconomic evaluationvalueincremental cost-effectiveness ratio |
| spellingShingle | Steven Simoens How to assess the value of medicines? Frontiers in Pharmacology threshold economic evaluation value incremental cost-effectiveness ratio |
| title | How to assess the value of medicines? |
| title_full | How to assess the value of medicines? |
| title_fullStr | How to assess the value of medicines? |
| title_full_unstemmed | How to assess the value of medicines? |
| title_short | How to assess the value of medicines? |
| title_sort | how to assess the value of medicines |
| topic | threshold economic evaluation value incremental cost-effectiveness ratio |
| url | http://journal.frontiersin.org/Journal/10.3389/fphar.2010.00115/full |
| work_keys_str_mv | AT stevensimoens howtoassessthevalueofmedicines |