Study Set Content:
The group of patients
or subgroups who will benefit from the
health intervention
Target population
Interventions being compared in
the economic evaluation (e.g., drugs, vaccines,
medical procedures, services)
Comparators
The context in which the intervention
will occur.
Setting
The different viewpoints from
which health benefits and costs can be
assessed (e.g., patient, provider, payer, society
in general)
Perspective
The duration over which costs
and outcomes (i.e., benefits/consequences) are
calculated in an economic analysis
Time horizon:
Represents the forgone benefit that
would have been derived by an option not chosen
Opportunity cost
Refers to the monetary component of the economic
analysis. It can be divided into direct, indirect costs, and
intangible costs
Costs
Also called ‘benefits’ or ‘ consequences’, the
() are the expected healthcare or humanistic results
from an intervention
Outcomes
The process in which individuals
are asked the maximum they are willing to pay, in monetary
terms, to achieve a given benefit of a intervention/service.
Willingness to pay
Method used to account for individuals time
preference. Most individuals have a positive rate of time
preference whereby benefits are preferred sooner rather than
later, and costs incurred later rather than sooner
Discounting
refers to the loss of potential benefits from other options
when one option is chosen
Opportunity cost
Refers to the monetary component of the economic
analysis.
Costs
Costs can be divided into
direct, indirect costs, and
intangible costs
Also called ‘benefits’ or ‘ consequences’, the
outcomes are the expected healthcare or humanistic results
from an intervention
Outcomes
This concept is based upon the idea that the scarcity of
resources leads players to expend capital on one
healthcare activity by sacrificing services elsewhere.
Opportunity cost
Thus, understanding the potential ()
foregone by choosing one technology over another
allows for better decision-making.
Missed opportunities
Opportunity cost
How much do I value this?
• What am I giving up now to
have this?
• What am I giving up in the
future to have this now?
A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent () and that money to spend on something else.
studying
A farmer chooses to plant wheat; the opportunity cost is planting a different(), or an alternate use of the resources (land and farm equipment).
crop
A commuter takes the train to work instead of driving. It takes 70 minutes on the train, while driving takes 40 minutes. The opportunity cost is an () spent elsewhere each day.
hour
