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Decision-analytical modelling in health-care economic evaluations

The European Journal of Health Economics volume 9, pages 313–323 (2008)Cite this article

Abstract

Objective

Decision-analytical modelling is widely used in health-care economic evaluations, especially in situations where evaluators lack clinical trial data, and in circumstances where such evaluations factor into reimbursement pricing decisions. This paper aims to improve the understanding and use of modelling techniques in this context, with particular emphasis on Markov modelling.

Methods

We provide an overview, in this paper, of the principles and methodological details of decision-analytical modelling. We propose a common route for practicing modelling that accommodates any type of decision-analytical modelling techniques. We use the treatment of chronic hepatitis B as an example to indicate the process of development, presentation and analysis of the Markov model, and discuss the strengths, weaknesses and pitfalls of different approaches.

Conclusions

Good practice of modelling requires careful planning, conduct and analysis of the model, and needs input from modellers and users.

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Acknowledgements

We are grateful to two anonymous reviewers for the helpful comments. We also thank Mike Clarke from the University of Oxford for kind provision of a place for Sun to conduct work on this paper.

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Affiliations

  1. Department of Clinical Epidemiology and Biostatistics, McMaster University, 1200 Main Street West, HSC 2C7, L8N 3Z5, Hamilton, ON, Canada

    Xin Sun

  2. Chinese Evidence-Based Medicine Center, West China Hospital, Sichuan University, Chengdu, China

    Xin Sun

  3. College of Law and Medical School, Australian National University, Canberra, Australia

    Thomas Faunce

Authors
  1. Xin Sun
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  2. Thomas Faunce
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Correspondence to Xin Sun.

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Sun, X., Faunce, T. Decision-analytical modelling in health-care economic evaluations. Eur J Health Econ 9, 313–323 (2008). https://doi.org/10.1007/s10198-007-0078-x

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  • DOI: https://doi.org/10.1007/s10198-007-0078-x

Keywords

  • Decision analysis
  • Markov model
  • Economic evaluation
  • Cost-effectiveness analysis