Pharmacoeconomics

Missing points
Discounting math
In order to draw most valid conclusion about costs generated over time
to achieve an effect in the future, it is necessary to consider that there is
a time preference associated with money
Time-value of money adjustment
Money in hand is worth more than the same amount sometime in the
future (we like to be paid as soon as possible, but prefer to pay at the
last possible moment)
Therefore future costs must be adjusted to reflect present value.
A $1000 cost one year from now requires only $930.00 in hand today
assuming a 7% return on investment.
ECHO model
Outcomes Includes

Clinical Cure, comfort and survival

Humanistic Physical, emotional, social function, role performance

Economic Expense, saving, cost avoidance

Australia was the first jurisdiction to adopt such a policy in 1993 and
was quickly followed by New Zealand and several Canadian provinces.
Pharmacoeconomics and clinical trials
Despite two decades of pharmacoeconomics, clinical trials remain firmly
focused on efficacy, with some attention to safety.
This will remain the norm until regulatory authorities begin demanding
that data be more relevant to the reimbursement and usage decisions
that must be made before the product is marketed.
It is extremely wasteful to spend millions conducting these trials only to
obtain a statistically significant estimate of efficacy and then relegate the
data collected to storage.
Much can be learned by taking full advantage of the wealth of available
data. Doing so will also go hand in hand with adoption of simulation
techniques capable of meaningfully accounting for these relationships.
 Pharmacoeconomic Studies

Research and Pricing and Communication to

Development Reimbursement Physicians and
Strategy Strategy Patients

Phase II Phase III Regulatory Marketing

Phase Phase
Perspectives
Patient 3rd-Party Payer
-Clinical Care -Clinical Cure
-Quality of life -Cost
-Out-of-pocket -Customer
Cost perception of
-Satisfaction with value
treatment
process Employer / Society
-Clinical Cure
Hospital / Physician -Cost
-Clinical Cure -Productivity
-Profit from treatment