Advertisement

Pharmacy World and Science

, Volume 15, Issue 2, pp 50–55 | Cite as

Quality of life 2

Economic analysis of drug therapies
  • Sissi V. Pham
  • JoLaine R. Draugalis
Reviews Pharmacotherapy Evaluations

Abstract

In 1990, health care expenditures in the United States reached $666.2 billion, 12.2% of the gross domestic product (GDP). It is projected for the year 2000, the USA will spend $1.6 trillion for health care which will be comparable to 16.4% of that year's GDP. As a result of the rapid increase in costs of health care and limited resources available, patients/third-party payers and the government have initiated and implemented more rigid cost control measures. Economic analyses can help ensure the efficient use of health care dollars in areas such as drug therapy. The four methodologies available are cost-benefit analysis, cost-effectiveness analysis, cost-minimization analysis and cost-utility analysis. This article reviews methods and provides examples from the medical literature. These tools can assist care providers in determining which treatments are most cost-effective.

Keywords

Costs and cost analysis Drug therapy Methods 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Schieber GJ, Poullier JP. Overview of international comparisons of health care expenditures. In: Health Care Financing Review. 1989 Annual Supplement. [HCFA Pub. No. 03291. Office of Research and Demonstrations, Health Care Financing Administration.] Washington: U.S. Government Printing Office, 1989:1–7.Google Scholar
  2. 2.
    McPherson K. International differences in medical care practices. In: Health Care Financing Review. 1989 Annual Supplement. [HCFA Pub. No. 03291. Office of Research and Demonstrations, Health Care Financing Administration.] Washington: U.S. Government Printing Office, 1989:9–20.Google Scholar
  3. 3.
    PMA Newsletter 1989;31(28):July 24.Google Scholar
  4. 4.
    Levitt KR, Lazenby HC, Cowan CA, Letsch SW. National health expenditures, 1990. In: Health Care Financing Review. Vol. 13. [HCFA Pub. No. 03321. Office of Research and Demonstrations, Health Care Financing Administration.] Washington: U.S. Government Printing Office, 1991:29–54.Google Scholar
  5. 5.
    Sonnefeld ST, Waldo DR, Lemieux JA, McKusick DR. Projections of national health expenditures through the year 2000. In: Health Care Financing Review. Vol. 13. [HCFA Pub. No. 03321. Office of Research and Demonstrations, Health Care Financing Administration.] Washington: U.S. Government Printing Office, 1991:1–27.Google Scholar
  6. 6.
    Manasse HR. Medication use in an imperfect world: drug misadventuring as an issue of public policy. Am J Hosp Pharm 1988;46:929–42.Google Scholar
  7. 7.
    Hartzema AG, ed. Pharmaceutical chartbook. Chelsea: Lewis, 1990:13–255.Google Scholar
  8. 8.
    Freidman RB, Katt JA. Cost-benefit issues in the practice of internal medicine. Arch Intern Med 1991;151:1165–8.Google Scholar
  9. 9.
    Bootman JL, Townsend RJ, McGhan WF. Introduction to pharmacoeconomics. In: Bootman JL, Townsend RJ, McGhan WF, eds. Principles of pharmacoeconomics. Cincinnati: Harvey Whitney, 1991:3–17.Google Scholar
  10. 10.
    Drummond MF, Stoddart GL, Torrance GW. Methods for the economic evaluation of health care programmes. New York: Oxford University Press, 1987.Google Scholar
  11. 11.
    Osterhaus JT, Draugalis JR. Application of pharmacoeconomics for drug therapy decisions. In: Bootman JL, Townsend RJ, McGhan WF, eds. Principles of pharmacoeconomics. Cincinnati: Harvey Whitney, 1991:134–45.Google Scholar
  12. 12.
    Draugalis JR, Bootman JL, Larson LN, McGhan WF. Pharmacoeconomics: current concepts. Kalamazoo: Upjohn Company, 1989.Google Scholar
  13. 13.
    Drummond M, Smith GT, Wells N. Economic evaluation in the development of medicines. London: Office of Health Economics, 1988.Google Scholar
  14. 14.
    Dao TD. Cost-benefit and cost-effectiveness analysis of drug therapy. Am J Hosp Pharm 1985;42:791–802.Google Scholar
  15. 15.
    Ganz PA. Methods of assessing the effect of drug therapy on quality of life. Drug Safety 1990;5(4):233–42.Google Scholar
  16. 16.
    Pathak DS, Reardon G. Health status and pharmaceutical programmes: from cost minimization to cost-utility analysis. Top Hosp Pharm Manage 1988;8(3):66–77.Google Scholar
  17. 17.
    Dao TD. Cost-effectiveness of drug therapy: the basic ingredients. Hospital Ther 1990;15:39–45.Google Scholar
  18. 18.
    Weinstein MC, Stason WB. Foundation of cost-effectiveness analysis for health and medical practice. N Engl J Med 1977;296:716–21.Google Scholar
  19. 19.
    Larson LN. Cost determination and analysis. In: Bootman JL, Townsend RJ, McGhan WF, eds. Principles of pharmaco-economics. Cincinnati: Harvey Whitney, 1991:134–45.Google Scholar
  20. 20.
    Patrick KM, Woolley FR. A cost-benefit analysis of immunization for pneumococcal pneumonia. JAMA 1981;245:473–7.Google Scholar
  21. 21.
    Einarson TR, McGhan WF, Bootman JL. Decision analysis applied to pharmacy practice. Am J Hosp Pharm 1985;42:364–71.Google Scholar
  22. 22.
    Kassirer JP, Moskowitz AJ, Lau J, Pauker SG. Decision analysis: a progress report. Ann Intern Med 1987;106:257–91.Google Scholar
  23. 23.
    Willems JS. Cost-effectiveness and cost-benefit analyses of vaccines. J Infect Dis 1981;144:486–93.Google Scholar
  24. 24.
    Edelson JT, Tosteson ANA, Sax P. Cost-effectiveness of misoprostol for prophylaxis against nonsteroidal anti-inflammatory drug-induced gastrointestinal tract bleeding. JAMA 1990;264:41–7.Google Scholar
  25. 25.
    Chin A, Gill MA, Ito MK, Yellin AE, Berne TV, Heseltine PNR, Appleman MD. Cost-analysis of two clindamycin dosing regimens. Drug Intell Clin Pharm 1989;23:980–3.Google Scholar
  26. 26.
    Kaplan RM, Anderson JP. The general health policy model: an integrated approach. In: Spilker B, ed. Quality of life assessments in clinical trials. New York: Raven Press, 1990:131–49.Google Scholar
  27. 27.
    Bergner M. Quality of life, health status, and clinical research. Med Care 1989;27(3):S148–56.Google Scholar
  28. 28.
    Patterson M. Assessment of treatment in rheumatoid arthritis. In: Smith GT, ed. Measuring health: a practical approach. New York: John Wiley & Sons, 1988:157–90.Google Scholar
  29. 29.
    Torrance GW. Utility approach to measuring health-related quality of life. J Chron Dis 1987;40(6):593–600.Google Scholar
  30. 30.
    Feeny D, LaBelle R, Torrance GW. Integrating economic evaluation and quality of life assessments. In: Spilker B, ed. Quality of life assessments in clinical trials. New York: Raven Press, 1990:71–83.Google Scholar
  31. 31.
    Guyatt GH, Jaeschke R. Measurements in clinical trials: choosing the appropriate approach. In: Spilker B, ed. Quality of life assessments in clinical trials. New York: Raven Press, 1990:37–46.Google Scholar
  32. 32.
    Patrick DL, Deyo RA. Generic and disease-specific measures in assessing health status and quality of life. Med Care 1989;27(3):S217–32.Google Scholar
  33. 33.
    Schipper H, Clinch J. Assessment of treatment in cancer. In: Smith GT, ed. Measuring health: a practical approach. New York: John Wiley & Sons, 1988:109–56.Google Scholar
  34. 34.
    Patterson M. Assessment of treatment in rheumatoid arthritis. In: Smith GT, ed. Measuring health: a practical approach. New York: John Wiley & Sons, 1988:157–90.Google Scholar
  35. 35.
    Goodwin PJ, Feld R, Evans WK, Pater J. Cost-effectiveness of cancer chemotherapy: an economic evaluation of a randomized trial in small-cell lung cancer. J Clin Oncol 1988;6:1537–47.Google Scholar
  36. 36.
    Slevin ML, Plant H, Lynch D, Drinkwater J, Gregory WM. Who should measure quality of life, the doctor or the patient? Br J Cancer 1988;57:109–12.Google Scholar
  37. 37.
    Drummond MF, Stoddart GL. Economic analysis and clinical trials. Control Clin Trials 1984;5:115–28.Google Scholar
  38. 38.
    Dao TD. Cost-effectiveness of drug therapy: the current status. Hospital Ther 1990;15:339–48.Google Scholar
  39. 39.
    Gagnon JP, Osterhaus JT. Proposed drug-drug cost effectiveness methodology. Drug Intell Clin Pharm 1987;21:211–6.Google Scholar

Copyright information

© Periodicals Service Company 1993

Authors and Affiliations

  • Sissi V. Pham
    • 1
  • JoLaine R. Draugalis
    • 1
  1. 1.Department of Pharmacy Practice, College of PharmacyUniversity of ArizonaTucsonUSA

Personalised recommendations