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Using propensity score methods to analyse individual patient-level cost-effectiveness data from observational studies

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Author Info
Manca, A
Austin, P. C
Abstract

The methodology relating to the statistical analysis of individual patient-level cost-effectiveness data collected alongside randomised controlled trials (RCTs) has evolved dramatically in the last ten years. This body of techniques has been developed and applied mainly in the context of the randomised clinical trial design. There are, however, many situations in which a trial is neither the most suitable nor the most efficient vehicle for the evaluation. This paper provides a tutorial-like discussion of the ways in which propensity score methods could be used to assist in the analysis of observational individual patient-level cost-effectiveness data. As a motivating example, we assessed the cost-effectiveness of CABG versus PTCA – one year post procedure - in a cohort of individuals who received the intervention within 365 days of their index admission for AMI. The data used for this paper were obtained from the Ontario Myocardial Infarction Database (OMID), linking these with data from the Canadian Institute for Health Information (CIHI), the Ontario Health Insurance Plan (OHIP), the Ontario Drug Benefit (ODB) program, and Ontario Registered Persons Database (RPDB). We discuss three ways in which propensity score can be used to control for confounding in the estimation of average cost-effectiveness, and provide syntax codes for both propensity score matching and cost-effectiveness modelling.

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Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 08/20.

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Date of creation: Jul 2008
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Handle: RePEc:yor:hectdg:08/20

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Keywords: Cost; cost-effectiveness; propensity score; revascularisation; statistical methods;

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  1. Barbara Sianesi, 2001. "Propensity score matching," United Kingdom Stata Users' Group Meetings 2001 12, Stata Users Group, revised 23 Aug 2001. [Downloadable!]
  2. Andrew Briggs & Paul Fenn, 1998. "Confidence intervals or surfaces? Uncertainty on the cost-effectiveness plane," Health Economics, John Wiley & Sons, Ltd., vol. 7(8), pages 723-740.
  3. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January. [Downloadable!]
  4. Andrew H. Briggs & David E. Wonderling & Christopher Z. Mooney, 1997. "Pulling cost-effectiveness analysis up by its bootstraps: A non-parametric approach to confidence interval estimation," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 327-340.
  5. Tambour, Magnus & Zethraeus, Niklas & Johannesson, Magnus, 1997. "A Note on Confidence Intervals in Cost-Effectiveness Analysis," Working Paper Series in Economics and Finance 181, Stockholm School of Economics.
  6. Hidehiko Ichimura & Christopher Taber, 2001. "Propensity-Score Matching with Instrumental Variables," American Economic Review, American Economic Association, vol. 91(2), pages 119-124, May. [Downloadable!] (restricted)
  7. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 02 May 2009. [Downloadable!]
  8. James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects, and Econometric Policy Evaluation," Econometrica, Econometric Society, vol. 73(3), pages 669-738, 05. [Downloadable!] (restricted)
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