IDEAS home Printed from https://ideas.repec.org/a/bpj/fhecpo/v23y2020i1p14n1.html
   My bibliography  Save this article

Health Economics Tools and Precision Medicine: Opportunities and Challenges

Author

Listed:
  • Veenstra David L.
  • Basu Anirban

    (University of Washington, Seattle, WA, USA)

  • Mandelblatt Jeanne

    (Georgetown University, Washington, DC, USA)

  • Neumann Peter

    (Tufts University, Boston, MA, USA)

  • Peterson Josh F.

    (Vanderbilt University Medical Center, Nashville, TN, USA)

  • Ramsey Scott D.

    (Hutchinson Cancer Research Center, Seattle, WA, USA)

Abstract

Precision medicine – individualizing care for patients and addressing variations in treatment response – is likely to be important in improving the nation’s health in a cost-effective manner. Despite this promise, widespread use of precision medicine, specifically genomic markers, in clinical care has been limited in practice to date. Lack of evidence, clear evidence thresholds, and reimbursement have been cited as major barriers. Health economics frameworks and tools can elucidate the effects of legal, regulatory, and reimbursement policies on the use of precision medicine while guiding research investments to enhance the appropriate use of precision medicine. Despite the capacity of economics to enhance the clinical and human impact of precision medicine, application of health economics to precision medicine has been limited – in part because precision medicine is a relatively new field – but also because precision medicine is complex, both in terms of its applications and implications throughout medicine and the healthcare system. The goals of this review are several-fold: (1) provide an overview of precision medicine and key policy challenges for the field; (2) explain the potential utility of economics methods in addressing these challenges; (3) describe recent research activities; and (4) summarize opportunities for cross-disciplinary research.

Suggested Citation

  • Veenstra David L. & Basu Anirban & Mandelblatt Jeanne & Neumann Peter & Peterson Josh F. & Ramsey Scott D., 2020. "Health Economics Tools and Precision Medicine: Opportunities and Challenges," Forum for Health Economics & Policy, De Gruyter, vol. 23(1), pages 1-14, June.
  • Handle: RePEc:bpj:fhecpo:v:23:y:2020:i:1:p:14:n:1
    DOI: 10.1515/fhep-2019-0013
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/fhep-2019-0013
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/fhep-2019-0013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ernst R. Berndt & Dana P. Goldman & John W. Rowe, 2019. "Economic Dimensions of Personalized and Precision Medicine," NBER Books, National Bureau of Economic Research, Inc, number bern-13, October.
    2. Heidi L. Williams, 2013. "Intellectual Property Rights and Innovation: Evidence from the Human Genome," Journal of Political Economy, University of Chicago Press, vol. 121(1), pages 1-27.
    3. Manuel Hermosilla & Jorge Lemus, 2018. "Therapeutic Translation of Genomic Science: Opportunities and Limitations of GWAS," NBER Chapters, in: Economic Dimensions of Personalized and Precision Medicine, pages 21-52, National Bureau of Economic Research, Inc.
    4. Dean A. Regier & David L. Veenstra & Anirban Basu & Josh J. Carlson, 2020. "Demand for Precision Medicine: A Discrete-Choice Experiment and External Validation Study," PharmacoEconomics, Springer, vol. 38(1), pages 57-68, January.
    5. John A. Graves & Zilu Zhou & Shawn Garbett & Josh F. Peterson, 2018. "The Value of Pharmacogenomic Information," NBER Chapters, in: Economic Dimensions of Personalized and Precision Medicine, pages 53-86, National Bureau of Economic Research, Inc.
    6. Ernst R. Berndt & Mark R. Trusheim, 2017. "The Information Pharms Race and Competitive Dynamics of Precision Medicine: Insights from Game Theory," NBER Working Papers 24020, National Bureau of Economic Research, Inc.
    7. Elizabeth J J Berm & Margot de Looff & Bob Wilffert & Cornelis Boersma & Lieven Annemans & Stefan Vegter & Job F M van Boven & Maarten J Postma, 2016. "Economic Evaluations of Pharmacogenetic and Pharmacogenomic Screening Tests: A Systematic Review. Second Update of the Literature," PLOS ONE, Public Library of Science, vol. 11(1), pages 1-22, January.
    8. Berndt, Ernst R. & Goldman, Dana P. & Rowe, John (ed.), 2019. "Economic Dimensions of Personalized and Precision Medicine," National Bureau of Economic Research Books, University of Chicago Press, number 9780226611068, December.
    9. Bhaven Sampat & Heidi L. Williams, 2019. "How Do Patents Affect Follow-On Innovation? Evidence from the Human Genome," American Economic Review, American Economic Association, vol. 109(1), pages 203-236, January.
    10. Anirban Basu, 2009. "Individualization at the Heart of Comparative Effectiveness Research: The Time for i-CER Has Come," Medical Decision Making, , vol. 29(6), pages 9-11, November.
    11. Josh J. Carlson & Rahber Thariani & Josh Roth & Julie Gralow & N. Lynn Henry & Laura Esmail & Pat Deverka & Scott D. Ramsey & Laurence Baker & David L. Veenstra, 2013. "Value-of-Information Analysis within a Stakeholder-Driven Research Prioritization Process in a US Setting: An Application in Cancer Genomics," Medical Decision Making, , vol. 33(4), pages 463-471, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 10th August 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-08-10 11:00:11

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel Hermosilla, 2021. "Rushed Innovation: Evidence from Drug Licensing," Management Science, INFORMS, vol. 67(1), pages 257-278, January.
    2. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2023. "Intellectual property rights protection and trade: An empirical analysis," World Development, Elsevier, vol. 162(C).
    3. Nicholas Bloom & John Van Reenen & Heidi Williams, 2019. "A toolkit of policies to promote innovation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
    4. Heidi L. Williams, 2016. "Intellectual Property Rights and Innovation: Evidence from Health Care Markets," Innovation Policy and the Economy, University of Chicago Press, vol. 16(1), pages 53-87.
    5. Matthew S. Clancy & GianCarlo Moschini, 2017. "Intellectual Property Rights and the Ascent of Proprietary Innovation in Agriculture," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 53-74, October.
    6. Dosi, Giovanni & Palagi, Elisa & Roventini, Andrea & Russo, Emanuele, 2023. "Do patents really foster innovation in the pharmaceutical sector? Results from an evolutionary, agent-based model," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 564-589.
    7. Ljungqvist, Alexander & Farre-Mensa, Joan & Hegde, Deepak, 2016. "The Bright Side of Patents," CEPR Discussion Papers 11091, C.E.P.R. Discussion Papers.
    8. Wang, Lucy Xiaolu, 2022. "Global drug diffusion and innovation with the medicines patent pool," Journal of Health Economics, Elsevier, vol. 85(C).
    9. Alberto Galasso & Mark Schankerman, 2015. "Patent Rights, Innovation and Firm Exit," NBER Working Papers 21769, National Bureau of Economic Research, Inc.
    10. Tedi Skiti, 2020. "Institutional entry barriers and spatial technology diffusion: Evidence from the broadband industry," Strategic Management Journal, Wiley Blackwell, vol. 41(7), pages 1336-1361, July.
    11. Comin, Diego & Licht, Georg & Pellens, Maikel & Schubert, Torben, 2018. "Do Companies Benefit from Public Research Organizations? The Impact of the Fraunhofer Society in Germany," Papers in Innovation Studies 2018/7, Lund University, CIRCLE - Centre for Innovation Research.
    12. Gong, Robin Kaiji & Li, Yao Amber & Manova, Kalina & Teng Sun, Stephen, 2023. "Tickets to the global market: first US patent awards and Chinese firm exports," LSE Research Online Documents on Economics 121375, London School of Economics and Political Science, LSE Library.
    13. Markus Nagler & Monika Schnitzer & Martin Watzinger, 2022. "Fostering the Diffusion of General Purpose Technologies: Evidence from the Licensing of the Transistor Patents," Journal of Industrial Economics, Wiley Blackwell, vol. 70(4), pages 838-866, December.
    14. Freilich, Janet & Shahshahani, Sepehr, 2023. "Measuring follow-on innovation," Research Policy, Elsevier, vol. 52(9).
    15. Gentile, Elisabetta, 2017. "Intellectual Property Rights and Foreign Technology Licensing in Developing Countries: An Empirical Investigation," ADB Economics Working Paper Series 515, Asian Development Bank.
    16. Baslandze, Salomé & Argente, David & Hanley, Douglas & Moreira, Sara, 2020. "Patents to Products: Product Innovation and Firm Dynamics," CEPR Discussion Papers 14692, C.E.P.R. Discussion Papers.
    17. Gaessler, Fabian & Harhoff, Dietmar & Sorg, Stefan, 2019. "Bargaining Failure and Freedom to Operate: Re-evaluating the Effect of Patents on Cumulative Innovation," Rationality and Competition Discussion Paper Series 220, CRC TRR 190 Rationality and Competition.
    18. Abhishek Nagaraj, 2018. "Does Copyright Affect Reuse? Evidence from Google Books and Wikipedia," Management Science, INFORMS, vol. 64(7), pages 3091-3107, July.
    19. Chao Hu & Damian C. Adams & Huachao Feng & Jing Cheng, 2023. "Refining the Rent Dissipation Model in Land Use: Application to Agricultural Insurance in China," Land, MDPI, vol. 12(2), pages 1-18, January.
    20. Heidi L. Williams, 2017. "How Do Patents Affect Research Investments?," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 441-469, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:fhecpo:v:23:y:2020:i:1:p:14:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.