Health Economics Essay Example | Topics and Well Written Essays - 1250 words

Health Economics - Essay Example The studies conducted by Shadick and colleagues focused on assessing the cost effectiveness of the vaccination against the Lyme disease by developing a decision analytic model. However, the evidence gathered for such an experiment may be not being considered as robust as it may seem because the probabilities and costs used by Shadick and Colleagues were taken from the literature which may not be considered as entirely satisfactory as it may seem. Further, best estimates were used on the base case analyses whereas the ranges used in sensitivity analysis were considered as clinically plausible only. Further, the evidence for compliance and risk effects were taken from relatively newer and recent trials which may not have considered as entirely satisfactory and untested due to lack of time tested empirical proofs. Further the evidence for cost effectiveness and management of Lyme disease were taken from one study only and the dollar values were updated up to 1998 only which may not entirely be considered as entirely accurate and relevant. Based on the above, it may be easily inferred that the evidence may not entirely be considered as robust as it lacks in many areas which were conceptually not corrected/designed according to the relevant economic variables. Any health state rated between zero and one can be rated as death or equivalent and perfect health whereas anything below zero on visual analogue scale may be termed as worse than death therefore based on three given states of A, B, C at 0.1, 0.45, 0.8, we can assign a utility of death or equivalent because all the utilities are greater than zero but less than one. Therefore, the utility assigned to all three states are effectively representing one state because all three are less than one and greater than zero. Q#1(d) An incremental cost effectiveness ratio (ICER) can be less than $40,000/- per quality adjusted year only if the persistence of vaccination efficacy is considered at three years. The traditional studies suggested that the cost effectiveness ratio, under two year time horizon of vaccination efficacy, the overall cost reach to $105,000/QALY. However, when this time horizon is stretched to three years, the incremental cost effectiveness ratio can reach up to $29,600/QALY. It is also important to note that Shadick & Colleagues took a radically larger efficacy period as in comparison to traditionally used. Q#1(e) With the increase in the vaccination cost by 100% i.e. from $150 to $300, the overall cost saving/QALY would decrease and the program would have moved up into the league table indicating smaller cost savings from the vaccination. The cost saving however is taken in terms of the costs averted while using the given vaccination. Q#2 Shadick and Colleagues considered a decision analytic model as one of the valid tools for making economic evaluation. Decision analytic tool is used when the intention of the researcher is to make justifiable and defendable decisions. Since, economics always involves a relative degree of abstraction therefore it sometimes becomes critical that such model for economic valuation is used which can provide researchers considerable degree of comfort while defending assessments made. (Arsham, 1994). Making comparison with earlier studies provide a peer reviewed evidence which can help researchers to take on the research