Abpm Board Review Health Economics And Outcome Research

Front 1

Cost of illness

Back 1

Impact of disease and resources used-baseline case

Front 2

Cost-Consequence

Back 2

Listing of all relevant costs &
consequences without imposing a point of
view

Front 3

Cost Minimization (constant)

Back 3

Determine the least costly intervention to
accomplish identical results (assumes
equal efficacy)

Front 4

What are some health economic related costs?

Back 4

Direct medical costs
 Direct non-medical costs
 Indirect costs
 Resource utilization
 Length of stay

Front 5

Discounting formula

Back 5

google it

Front 6

Expenditure

Back 6

price x quantity

Front 7

Value

Back 7

expenditure/unit of value.

Front 8

Cost

Back 8

magnitude (or monetary value)
of resources consumed in producing
good or service

Front 9

Price

Back 9

what a consumer is asked to
pay for good or service

Front 10

Reimbursement

Back 10

what the payor
provides for the service

Front 11

Opportunity Cost

Back 11

Amount that a resource could earn in its
highest valued alternative use
• Best measure of value of a resource

Front 12

How much of the GDP was spent on healthcare in 2013

Back 12

Approx 18%

Front 13

What bill invested in comparative effectiveness?

Back 13

American recovery act

Front 14

Cost-effectiveness

Back 14

Method to define, assess, and compare
resource consumption (inputs) with
consequences of care (outputs)
between two or more alternatives.

Front 15

ICER

Back 15

Look up

Front 16

Cost-utility analysis

Back 16

Assesses efficiency of healthcare
interventions. value placed on a level of
health status as measured by
preference of individuals or society
• Outcomes/Benefits measured in QALYs
• Incorporates morbidity and mortality
(quality and quantity of life)

Includes patient preferences

Front 17

Quality adjusted life years

Back 17

Life expectancy x Utility

Front 18

Unattractive QALY

Back 18

> $100,000 per QALY

Front 19

=20000/QALY

<20000/QALY

Back 19

attractive/very attractive

Front 20

Cost-effectiveness (natural units)

Back 20

Determine the medical or healthcare intervention that leads to the greatest improvement for the smallest increase in cost

Front 21

Cost-utility (health related)

Back 21

Determine the intervention that leads to the best improvement (in cost per quality-adjusted life years gained)

Front 22

Marginal cost:

Back 22

Change in total cost of
producing one additional unit of change

Front 23

Cost of Illness

Back 23

Medical + nonmedical + indirect costs
• Medical cost examples
• Nonmedical costs
 Personal
 Other sectors
• Indirect costs
 Morbidity & mortality

Front 24

Cost-Benefit analysis

Back 24

• Method for comparing the value of
all resources consumed (costs) in
providing a program or intervention
with the value of the outcome
(benefits) from that program or
intervention.
• Monetary yield of an investment.

Front 25

Cost Benefit analysis

Back 25

Goal = To identify if a program’s
benefits exceed costs
• Controversial because CBA puts a
dollar value on human life

Front 26

Cost-Benefit analysis

Back 26

Provides an absolute “worth” of
therapy/intervention

Front 27

Disadvantages of Cost-Benefit analysis?

Back 27

Some outcomes are difficult to assign a
dollar value to (e.g., human life)
• Cannot use intermediate outcomes
• Value assigned to outcomes can be
subjective (and therefore biased)
• Not widely accepted in healthcare

Front 28

Net Benefit formula?

Back 28

= PV(B) – PV(C)

 PV(B) = present value of benefit
 PV(C) = present value of costs
• Benefits must exceed costs

Front 29

Benefit to cost ratio

Back 29

PV(B)/PV(C)

 PV(B) = present value of benefit
 PV(C) = present value of costs

Front 30

SF-36. What does it measure?

Back 30

General Health
• Physical Functioning
• Social Functioning
• Role Function Limitations (Physical &
Emotional)
• Mental Status
• Energy/Fatigue
• Bodily Pain

Front 31

Decision Analysis

Back 31

Provide an orderly, analytical approach
to assist the decision maker in
identifying the preferred course of action
from competing alternatives

Front 32

Decision Analysis

Back 32

Use published probability of an
outcome event and its associated cost
to project the average expected cost per
patient for the alternatives being
compared

Front 33

What best describes: indirect medical vs indirect costs?

Back 33

Indirect medical cost are associated with the treatment or screening. E.g., hiring staff to fill bills, shipping supplies.

Indirect cost are not directly related to the cost of the rx or screen. E.g., lost days from work

Front 34

What are the three outcomes of outcome research?

Back 34

Clinical, economic, and humanistic

Front 35

Break even point = cost of equipment + fixed costs (e.g., staff) / volume x profit margin.

However also need to take into account opportunity cost. Could the money and resources used elsewhere been as good as doing nothing or better that this?

Back 35

Break even point