1 / 18

Cost and Benefits

Cost and Benefits. Introduction. Is treatment X worth it?. Cost-Benefit Analysis. Devote resources to an activity until the marginal benefit equals the marginal cost. Determining Value. Willingness To Pay (WTP) Surveys Market data (compensating differentials in labor markets)

littlea
Download Presentation

Cost and Benefits

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Cost and Benefits

  2. Introduction • Is treatment X worth it?

  3. Cost-Benefit Analysis • Devote resources to an activity until the marginal benefit equals the marginal cost.

  4. Determining Value • Willingness To Pay (WTP) • Surveys • Market data (compensating differentials in labor markets) • Human Capital Approach • Estimate future earnings, used in accidental death injury cases.

  5. Cost Effectiveness • Incremental cost effectiveness analysis

  6. Cost-Utility Analysis • CUA is CEA with utility as a measure of benefits. • Useful for multi-dimensional problems • Utility proxied by Quality Adjusted Life Years or Disability Adjusted Life Years

  7. Quality Adjusted Life Year (QALY) • Standard gamble method • Time trade-off method

  8. Problems with CEA • Whose utility function? • Patients or public? • When to measure? • Mean or median? • Non-independence of value of health and wealth and consumption patterns

  9. Inequality in health • Americans with Disabilities act. Should their well being be considered equally?

  10. Practical Problems • Should fixed costs be taken into account?

  11. Cost Effectiveness vs Comparative Effectiveness

  12. Utilitarian versus Rawlsian

More Related