The basic calculation involves dividing the cost of an intervention in monetary units by the expected health gain measured in natural units such as number of lives saved.
Another way of looking at this is to note that for the same cost, capsule distribution could reach three to five times more people than fortified sugar DCP2, Chapter Cost-effectiveness analysis helps identify neglected opportunities by highlighting interventions that are relatively inexpensive, yet have the potential to reduce the disease burden substantially.
The figure illustrates how interventions are related to a health event. Nevertheless, averting death or prolonging life is not the only goal of health interventions.
The cost of reaching the first 1 percent of a population may be quite high when the fixed costs of purchasing equipment, training staff, and setting up management systems are taken into consideration and may yield relatively few health gains.
Once coverage is high, reaching the remaining, and often marginalized, segments of the population may again be quite costly without a correspondingly large health gain, and consequently cost-effectiveness will worsen.
Investigators have proposed other measures to differentiate between a year of life in perfect health and a year of life with some health impairment. The main question involves whether to use market foreign exchange rates to convert domestic currency costs and compare them to the value of imported and importable inputs expressed in dollars, or whether to use a different conversion factor based on studies of the relative purchasing power of the domestic currency.
The authors of DCP2 were unable to collect unit prices of the inputs into interventions in every country, so instead they were provided with average unit prices in each of six developing regions: The chapter also considers some of the other contextual factors that must complement cost-effectiveness analysis in the decision-making process if policy makers are to make the best use of the findings provided in DCP2.
Such interventions can be defined relative to adverse health events, such as being involved in an accident, contracting an infection, or suffering from a malignant tumor. The edition of Disease Control Priorities in Developing Countries Jamison and others was among the first efforts to guide choices about public health policies in developing countries by systematically combining information about effective interventions with information about their costs.
When cost-effectiveness ratios are within a similar range, policy decisions become more difficult. Some health interventions are aimed directly at reducing mortality, but many are aimed at reducing the severity of illness and improving the quality of life.
Today the polio campaign faces a similar challenge: DCP2 has benefited from this expanding literature and has aimed for consistent comparisons across diseases and interventions. What Is Cost-Effectiveness Analysis?
By measuring cost-effectiveness in terms of lives saved, all lives are treated equally regardless of whether the person is an infant who might live another 80 years or a middle-aged person who can expect only another 40 years of life.Increasing Efficiency and Enhancing Value in Health Care: Ways to Achieve Savings in Operating Costs per Year.
WHO Library Cataloguing-in-Publication Data World Health Organization. Making choices in health: WHO guide to cost-effectiveness analysis/ edited by T. Tan-Torres Edejer. Another number used to measure value—the cost-effectiveness ratio—is the net dollar increase in the cost of health care compared to the standard treatment, divided by the net gain in health.
Effectiveness and cost are always comparative, because one treatment or procedure is always compared to another. Looking at the history of previous policies, all issues have stemmed from one major common factor, the cost of health care. With cost at an all-time high, the quality of and access to health care are relatively affected.
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Mar 10, · View and download health care cost essays examples. Also discover topics, titles, outlines, thesis statements, and conclusions for. Next, the relationship between cost-effectiveness results and other elements of the health care policy decision-making process will be discussed. More information will be provided on several aspects of how to conduct cost-effectiveness analyses.Download