HP4E4E Half Unit
Cost-effectiveness in Health Care
This information is for the 2019/20 session.
Dr Ranjeeta Thomas OLD.1.01
This course is compulsory on the Executive MSc in Health Economics and Policy (LSE and Chicago). This course is not available as an outside option.
This course will introduce students to the basic notions of economic evaluation including cost-benefit analysis, cost-utility analysis and cost-effectiveness analysis as applied to the health care sector. The course will discuss notions of welfare economics and extra-welfarism, the identification and measurement of resource costs when markets do not exist (shadow prices), the measurement of health outcomes (including life years gained and Quality Adjusted life-years gained (QALYs)), methods of discounting and the basic calculations involved in estimating the cost-effectiveness of new health care technologies, including Markov modelling. The definition of the incremental cost-effectiveness ratio (ICER) will be outlined, as will the treatment of uncertainty (including structural (model) uncertainty, sensitivity analysis, and multivariate, parameter uncertainty). The use of bootstrap elements to estimate standard errors for the ICER will be described. Presentation of results, including the use of Acceptability curves, will also be covered. Finally, the use of cost-effectiveness in pharmaceutical pricing and reimbursement will also be detailed.
10 hours of lectures and 15 hours of seminars in the MT.
The course will be supplemented by workshops, using Excel based programmes where students will learn how to build a cost-effectiveness model from scratch, detailing the type of data requirements and the choice (from basic decision tree to Markov models) of modelling framework.
Students will be expected to produce 1 essay in the MT.
Briggs,A. Claxton, K. and Schulpher, M, 2007, Decision Modelling for Economic Evaluation, Oxford, OUP
Drummond, M., Schulpher, M., Claxton, K., Stoddart, G. and Torrance, G., 2016, Methods for the Economic Evaluation of Health Care Programmes, Oxford, OUP,
Economic Evaluation in Health Care: Merging Theory with Practice, 2001, Edited by M. Drummond and A. McGuire, Oxford, OUP
Meltzer, D., 2013, Future costs in medical cost-effectiveness in Jones, A., editor The Elgar Companion to Health Economics, Cheltenham, Edward Elgar
Raikou, M and McGuire, A. Measuring costs for cost-effectiveness analysis in Jones, A., editor The Elgar Companion to Health Economics, Cheltenham, Edward Elgar
Essay (30%, 2500 words), take home exam (60%) and presentation (10%) in the MT.
Department: Health Policy
Total students 2018/19: Unavailable
Average class size 2018/19: Unavailable
Controlled access 2018/19: No
Value: Half Unit
Personal development skills
- Team working
- Problem solving
- Application of numeracy skills
- Commercial awareness