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Unrelated Medical Costs in Life-Years Gained: Should They be Included in Economic Evaluations of Healthcare Interventions?

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Author Info
David R. Rappange (Department of Health Policy & Management and Institute for Medical Technology Assessment, Erasmus University Medical Center, Rotterdam, the Netherlands)
Pieter H.M. van Baal (Centre for Prevention and Health, Services Research, National Institute for Public Health and the Environment, Bilthoven, the Netherlands)
N. Job A. van Exel (Department of Health Policy & Management and Institute for Medical Technology Assessment, Erasmus University Medical Center, Rotterdam, the Netherlands)
Talitha L. Feenstra (Centre for Prevention and Health, Services Research, National Institute for Public Health and the Environment, Bilthoven, the Netherlands)
Frans F.H. Rutten (Department of Health Policy & Management and Institute for Medical Technology Assessment, Erasmus University Medical Center, Rotterdam, the Netherlands)
Werner B.F. Brouwer (Department of Health Policy & Management and Institute for Medical Technology Assessment, Erasmus University Medical Center, Rotterdam, the Netherlands)

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Abstract

Which costs and benefits to consider in economic evaluations of healthcare interventions remains an area of much controversy. Unrelated medical costs in life-years gained is an important cost category that is normally ignored in economic evaluations, irrespective of the perspective chosen for the analysis. National guidelines for pharmacoeconomic research largely endorse this practice, either by explicitly requiring researchers to exclude these costs from the analysis or by leaving inclusion or exclusion up to the discretion of the analyst. However, the inclusion of unrelated medical costs in life-years gained appears to be gaining support in the literature. This article provides an overview of the discussions to date. The inclusion of unrelated medical costs in life-years gained seems warranted, in terms of both optimality and internal and external consistency. We use an example of a smoking-cessation intervention to highlight the consequences of different practices of accounting for costs and effects in economic evaluations. Only inclusion of all costs and effects of unrelated medical care in life-years gained can be considered both internally and externally consistent. Including or excluding unrelated future medical costs may have important distributional consequences, especially for interventions that substantially increase length of life. Regarding practical objections against inclusion of future costs, it is important to note that it is becoming increasingly possible to accurately estimate unrelated medical costs in life-years gained. We therefore conclude that the inclusion of unrelated medical costs should become the new standard. DOI: 10.2165/0019053-200826100-00003

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Publisher Info
Article provided by Wolters Kluwer Health | Adis in its journal PharmacoEconomics.

Volume (Year): 26 (2008)
Issue (Month): 10 ()
Pages: 815-830
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wkh:phecon:v:26:y:2008:i:10:p:815-830

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Web page: http://pharmacoeconomics.adisonline.com/

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Related research
Keywords: Cost-analysis; Economic-implications; Health-policy; Indirect-costs;

Find related papers by JEL classification:
C - Mathematical and Quantitative Methods
D - Microeconomics
I - Health, Education, and Welfare
Z - Other Special Topics
I1 - Health, Education, and Welfare - - Health
I19 - Health, Education, and Welfare - - Health - - - Other
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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