PRINCIPLE OF

PHARMACOECONOMICS
J. Lyle Bootman
Raymond J Townsend
William F McGhan
Cincinnati , Ohio , USA , 1991
PHARMACOECONOMICS AND OUTCOMES
APPLICATIONS FOR PATIENT CARE

American College of Clinical Pharmacy

Kansas City , USA , 1997
 PRACTICAL
PHARMACOECONOMICS
Lorne E. Basskin
Cleveland , Ohio , USA , 1998
PHARMACOECONOMICS

Tom Walley
Alan Haycox
Angela Baland
London , England , 2004
 PHARMACOECONOMICS
FROM THEORY TO PRACTICE
Renee J. G. Arnold
Boca Raton , Florida , USA , 2010
OUTCOMES ANALYSIS

Lynn A. Uber, BS, Pharm D

Outcomes Management Coordinator
Clinical Associate Professor
Medical University of South Carolina
 Goals
 Select the type of evaluation that is best for an
outcomes analysis in your practice setting

 Compare the different types of pharmacoeconomic

methodologies

 Understand and design an outcomes analysis that

measures the most relevant costs and patient
outcomes for a specific perspective

 Develop a decision analysis model that uses internal

data to validate a published pharmacoeconomic
study.
Theory and Methods of
Economic Evaluation
.

• Ya-Chen Tina Shih, Ph.D.

• Associate Professor
• Section of Health Services Research
• Dept. of Biostatistics and Applied Mathematics
• UT M. D. Anderson Cancer Center
Economic Evaluation

Health technology assessment

Pharmacoeconomics
Why study Economic Evaluation?

 The pressure of cost containment.

 The need for methods to evaluate
medical interventions.
 Purpose of economic evaluation
  efficient resource allocation
 NOTE: equity is often not addressed
Who uses Economic Evaluation?

• Managers in hospital or health care plans

(formulary decision)
• Pharmaceutical companies
• Government / Policy makers
• Researchers
• Hospital managers (including HMOs and FFS)
– What drugs should be included on the hospital
formulary?
– Which drug delivery system is the best for the
hospital?
• Pharmaceutical companies
– What is the best drug for a pharmaceutical
company to develop?
– Shall the company continue a clinical trial?
– What is the economic benefit of a new product?
• Government
– Which drugs should be included in a Medicaid
formulary?
– Is it cost-effective for Medicare to cover annual
mammography?
• Researchers
– All of the above
– How to improve the analytical credibility of
economic evaluation ?
What are the types of analysis in Economic Evaluation?

• Cost Minimization Analysis (CMA)

• Cost Benefit Analysis (CBA)
• Cost Effectiveness Analysis (CEA)
• Cost Utility Analysis (CUA)
• Cost-of-Illness Analysis (COI)
• Budget Impact Analysis (BIA)
Alan Holmer, President of the Pharmaceutical
Research and Manufacturers of
America(PhRMA) 1998

Pharmaceuticals are the :

 most cost-effective
 value-added
 least-invasive
part of the health-care system
• Course objectives
• Why a course in pharmacoeconomics?
• What will be covered
• What is expected /required of you
• The market for pharmaceuticals
Pharmacoeconomics is a
branch of health economics
primarily concerned with
assessing the cost-effectiveness
of drug therapies.
 Why Pharmacoeconomics
• Pharmacoeconomic information is being widely
disseminated;
• The information can help payers, managers,
consumers, physicians, regulators, analysts make
better decisions;
• There is (legitimate) concern about the quality of
analyses;
• There is great demand for skilled practitioners.
 What will be covered?
• Context: Rx drug industry and the FDA
• Regulation of drugs and promotional claims
• Reimbursement and pricing issues
• Case studies in pharmacoeconomics
• Alzheimer’s disease
• Thrombolytic therapy
• “Lifestyle” drugs
• Others
• Guest lectures / “the real world”
PETER J NEUMANN

LECTURES

ON

PHARMACOECONOMICS