1 Presented by Donald S. Shepard, Ph.D. Schneider Institute for Health Policy Heller School, Room 122A, Mail Stop 035 Brandeis University Waltham, MA 02454-9110.

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1 Presented by Donald S. Shepard, Ph.D. Schneider Institute for Health Policy Heller School, Room 122A, Mail Stop 035 Brandeis University Waltham, MA Tel: Fax: Web: Brandeis University Nov. 9, 2000 Cost-Effectiveness of health programs

2 Practical information Teaching assistant: Administrative assistant: Linda Purrini, Next to library in Heller Cost of packet (including diskette): $4.50

3 Overview by Session 1.Principles 2.Measuring effectiveness 3.Applications 4.Policy uses

4 Key book  Gold, Marthe R. et al. Chapter 6 “Estimating Cost in Cost-Effectiveness Analysis”, Cost-Effectiveness in Health and Medicine. Oxford University Press, New York, 1996, pp (Reports the findings of the 1993 U.S. Panel on Cost-Effectiveness Analysis.)

5 Key articles - 1 Russell L.B., Gold, M.R., Siegel J.E., Daniels, N., and Weinstein, M.C. “The Role of Cost- Effectiveness Analysis in Health and Medicine.” JAMA 1996; 276: (This article provides an essential overview of cost- effectiveness analysis, uses, advantages and disadvantages, the background of the 1993 U.S. Panel on Cost-Effectiveness Analysis, the reference case, and the societal perspective.)

6

7 Key articles - 2 Weinstein, M.C., Siegel J.E., Gold, M.R., Kamlet, M.S., and Russell L.B. “The Recommendations of the Panel of Cost-Effectiveness Analysis in Health and Medicine.” JAMA 1996; 276: (This article presents the background, issues, considerations, and final recommendations of the 1993 U.S. Panel on Cost-Effectiveness Analysis for the reference case analysis.)

8

9 Key articles - 3 Siegel, J.E., Weinstein, M.C., Russell, L.B., and Gold, M. R. “Recommendations for Reporting Cost-Effectiveness Analyses.” JAMA 1996; 276: (This article discusses clear and standardized ways of reporting the results of cost-effectiveness analyses, from the 1993 U.S. Panel on Cost- Effectiveness Analysis, the reference case, and the societal perspective.)

10 Cost-effectiveness ratio Numerator: net use of health resources Denominator: net improvement in QALYs

11 Standard reference case Standard set of assumptions for consistent analyses Comparator is the status quo Uses a discount rate of 3%