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Use of pharmacoeconomics in prescribing research. Part 3: cost‐effectiveness analysis – a technique for decision‐making at the margin
Author(s) -
Lopert R.,
Lang D. L.,
Hill S. R.
Publication year - 2003
Publication title -
journal of clinical pharmacy and therapeutics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.622
H-Index - 73
eISSN - 1365-2710
pISSN - 0269-4727
DOI - 10.1046/j.1365-2710.2003.00465.x
Subject(s) - pharmacoeconomics , purchasing , variety (cybernetics) , margin (machine learning) , management science , outcomes research , cost effectiveness , medicine , intensive care medicine , computer science , risk analysis (engineering) , operations management , alternative medicine , economics , pathology , artificial intelligence , machine learning
Summary This is the third Research Note addressing pharmacoeconomics in prescribing research, reflecting the increasing use of economic evaluation in drug purchasing decisions in a variety of settings. In this segment we provide an overview of the theoretical basis, practical application and methodological limitations of cost‐effectiveness analysis (CEA).Box 1.Key message boxCost‐effectiveness analysis is a technique to aid decision‐making at the margin. Cost‐effectiveness analysis is most readily applicable to questions of technical efficiency – questions of allocative efficiency can only be addressed where there is a common outcome measure. Difficulties of interpretation can occur when cost‐effectiveness ratios are presented in terms of surrogate or intermediate endpoints.