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Optimal Allocation of Resources across Four Interventions for Type 2 Diabetes

Author

Listed:
  • Stephanie R. Earnshaw
  • Anke Richter
  • Stephen W. Sorensen
  • Thomas J. Hoerger
  • Katherine A. Hicks
  • Michael Engelgau
  • Ted Thompson
  • K. M. Venkat Narayan
  • David F. Williamson
  • Edward Gregg
  • Ping Zhang

Abstract

Background Several interventions can be applied to prevent complications of type 2 diabetes. This article examines the optimal allocation of resources across 4 interventions to treat patients newly diagnosed with type 2 diabetes. The interventions are intensive glycemic control, intensified hypertension control, cholesterol reduction, and smoking cessation. Methods A linear programming model was designed to select sets of interventions to maximize quality-adjusted life years (QALYs), subject to varied budget and equity constraints. Results For no additional cost, approximately 211,000 QALYs can be gained over the lifetimes of all persons newly diagnosed with diabetes by implementing interventions rather than standard care. With increased availability of funds, additional health benefits can be gained but with diminishing marginal returns. The impact of equity constraints is extensive compared to the solution with the same intervention costs and no equity constraint. Under the conditions modeled, intensified hypertension control and smoking cessation interventions were provided most often, and intensive glycemic control and cholesterol reduction interventions were provided less often. Conclusions A resource allocation model identifies trade-offs involved when imposing budget and equity constraints on care for individuals with newly diagnosed diabetes.

Suggested Citation

  • Stephanie R. Earnshaw & Anke Richter & Stephen W. Sorensen & Thomas J. Hoerger & Katherine A. Hicks & Michael Engelgau & Ted Thompson & K. M. Venkat Narayan & David F. Williamson & Edward Gregg & Ping, 2002. "Optimal Allocation of Resources across Four Interventions for Type 2 Diabetes," Medical Decision Making, , vol. 22(1_suppl), pages 80-91, September.
  • Handle: RePEc:sae:medema:v:22:y:2002:i:1_suppl:p:80-91
    DOI: 10.1177/027298902237704
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    Cited by:

    1. Andrew J. Mirelman & Miqdad Asaria & Bryony Dawkins & Susan Griffin & Richard Cookson & Peter Berman, 2020. "Fairer Decisions, Better Health for All: Health Equity and Cost-Effectiveness Analysis," World Scientific Book Chapters, in: Paul Revill & Marc Suhrcke & Rodrigo Moreno-Serra & Mark Sculpher (ed.), Global Health Economics Shaping Health Policy in Low- and Middle-Income Countries, chapter 4, pages 99-132, World Scientific Publishing Co. Pte. Ltd..
    2. Linus Nyiwul, 2021. "Epidemic Control and Resource Allocation: Approaches and Implications for the Management of COVID-19," Studies in Microeconomics, , vol. 9(2), pages 283-305, December.
    3. Nadia Demarteau & Thomas Breuer & Baudouin Standaert, 2012. "Selecting a Mix of Prevention Strategies against Cervical Cancer for Maximum Efficiency with an Optimization Program," PharmacoEconomics, Springer, vol. 30(4), pages 337-353, April.
    4. McKenna, Claire & Chalabi, Zaid & Epstein, David & Claxton, Karl, 2010. "Budgetary policies and available actions: A generalisation of decision rules for allocation and research decisions," Journal of Health Economics, Elsevier, vol. 29(1), pages 170-181, January.
    5. Sanjay Mehrotra & Kibaek Kim, 2011. "Outcome based state budget allocation for diabetes prevention programs using multi-criteria optimization with robust weights," Health Care Management Science, Springer, vol. 14(4), pages 324-337, November.
    6. Feenstra, T.L. & van Baal, P.M. & Jacobs-van der Bruggen, M.A.M. & Hoogenveen, R.T. & Kommer, G.J. & Baan, C.A., 2011. "Targeted versus universal prevention. A resource allocation model to prioritize cardiovascular prevention," Other publications TiSEM da2bcf9c-cba4-4f97-86bf-a, Tilburg University, School of Economics and Management.
    7. Douglas K. Owens, 2002. "Analytic Tools for Public Health Decision Making," Medical Decision Making, , vol. 22(1_suppl), pages 3-10, September.

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