PHARMACOECONOMICS –

CHAPTER 4

Lebanese International University

School of Pharmacy
Fall 2020-2021
Cost-Minimization Analysis
Objectives • Define and describe cost-minimization
analysis (CMA)

• Address advantages and disadvantages

of CMA

• Critique a CMA composite article

 Cost- • Cost-Minimization analysis (CMA) measures
Minimization and compares input costs and assumes
outcomes to be equivalent (i.e. outcomes are
Analysis not measured).

• CMA analysis includes measuring the cost of

receiving the same medication under:

• Different settings (same antibiotic in hospital vs

at home)
• Different routes of administration
• Brand vs generic
 Cost-
Minimization
Analysis
Debate
 • If the outcomes are not measured some
Cost- consider that the study is not a PE study,
Minimization rather it would be a cost analysis.

Analysis • Publications that use CMA are less

common than other types of PCE analysis
Debate
• When both costs and clinical outcomes are
measured, and clinical outcomes found to
be equivalent:

• Some refer to it as CMA because the

outcomes were equivalent.

• Others refer to it as CEA because the

outcomes were measured.
 Outcome • Methods to establish outcome equivalency
Equivalency depend on:
• The number of alternatives available for
comparison
• The method used to measure outcomes
• Outcomes equivalency should be supported
with evidence
• For generic vs brand Approved Drug
Products with Therapeutics Equivalence
Evaluations,16th edition, published by the US
Department of Health and Human Services
• For products with similar therapeutics class
Meta-analysis and statistical tests can be used
to establish equivalency
Meta-analysis • Meta-analysis is a statistical procedure used for
combining data from multiple studies. When the
outcome is consistent from one study to
another, meta analysis can be used to identify
this outcome.

• Factors to consider while conducting a literature

review:
• Type/design of study
• Year of publication
• Language of publication
• Ay restriction to sample size or follow up period
• Competence of information
Measurement of • All the relevant resources that are
Costs consumed should be identified.

• Resource utilization should be

quantified in units. (number of units)

• An appropriate cost should be assigned

to each resource unit consumed. (cost
per unit)
CMA vs CEA • CMA is different from CEA in that the
consequences are assumed to be
equivalent, while in CEA they are not.

• In CEA outcomes are measured.

 Article • Article 1:

Critique ECONOMIC ANALYSIS OF ONCOPLATIN ALONE

(A CHEMOTHERAPY AGENT) COMPARED WITH
ONCOPLATIN COMBINED WITH NONAUSEA
(AN ANTINAUSEA AGENT)

• Article 2:
COST ANALYSIS OF OUTPATIENT TREATMENT
OF DEEP VEIN THROMBOSIS

Both of these articles are presented in the

‘CMA_Chapter4’ pdf document that is posted
along with this ppt. presentation.