Page 32 - FPGEE Management Q&A Book

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particularly psychology, common examples are the standardized methods to calculate utility values for
Likert response scale and 1-10 rating scales in which diseases.
a person selects the number which is considered to
reflect the perceived quality of a product. 36.(b) Cost Minimization Analysis (CMA):

Standard gamble: The standard gamble is a method This type of analysis is used to examine the cost
used to measure health utilities of varying health associated with two or more alternatives that are
states and allow for comparisons across populations clinically equivalent in terms of outcomes.
and different clinical settings. These health utility Equivalency must be established before conducting
scores are useful as measures of outcome for an analysis. Furthermore, equivalency studies must
quality of life and applicable to economic evaluation include not only therapeutic outcomes but also the
studies. Nonetheless, the measurement process can type of adverse effects associated with therapies.
be cognitively challenging, and controversies
remain regarding raters and rating methods. Cost minimization can be calculated by using the
following formula:
Time-trade off: Time-Trade-Off (TTO) is a tool used
in health economics to help determine the quality Cost (dollars) of intervention A <, =, or > Cost
of life of a patient or group. The individual will be (dollars) of intervention B
presented with a set of directions such as:
An example of a cost minimization analysis would
Imagine that you are told that you have 10 years be a comparison of two treatments with the same
left to live. In connection with this you are also told drug but different routes of administration.
that you can choose to live these 10 years in your
current health state or that you can choose to give In both cases, if the therapeutic outcomes as well as
up some life years to live for a shorter period in full the incidence and type of adverse reactions remain
health. Indicate with a cross on the line the number the same, then one should chose the less expensive
of years in full health that you think is of equal value and laborious route of administration of the drug.
to 10 years in your current health state.
37.(d) All. Cost of Illness Analysis:
The line usually ranges from 1 to 10 and the
person's score is calculated by dividing the number This type of evaluation method includes all costs
corresponding to their cross by 10. and consequences related to treating a particular
disease. It is really important to conduct a Cost of
For example, if someone marks a cross at 4 on the Illness Analysis before initiating further economic
TTO line, they would be given a TTO score of 0.4. evaluation. Advantages of using Cost of Illness
This number is often used in turn to calculate Analysis:
quality-adjusted life years or QALYs. In our example
if this person were to live for 4 years at their current 1. This method allows researchers to collect and
health state this would be equal to 1.6 QALYs (4 x assess disease specific data.
.4). QALYs enable health care decision makers to
combine mortality and morbidity into a single 2. It provides a true definition of the particular
interval scale. illness.

The major advantage of a cost-utility analysis is that 3. It provides researchers information about
it is the only analysis method that calculates epidermology and potential outcome of illness, and
consequences or outcomes in terms of the quality the consequences associated with the illness.
of a patient’s life. The only disadvantage associated
with this method is a lack of uniform or

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