IDEAS home Printed from https://ideas.repec.org/a/bpj/fhecpo/v23y2020i1p14n1.html

Health Economics Tools and Precision Medicine: Opportunities and Challenges

Author

Listed:
  • Veenstra David L.

    (University of Washington, Seattle, WA, USA)

  • Mandelblatt Jeanne

    (Georgetown University, Washington, DC, USA)

  • Neumann Peter

    (Tufts University, Boston, MA, USA)

  • Basu Anirban

    (University of Washington, Seattle, WA, 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. & Mandelblatt Jeanne & Neumann Peter & Basu Anirban & 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

    for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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, September.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    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.
    9. 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.
    10. 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.
    11. Bas Groot Koerkamp & Theo Stijnen & Milton C. Weinstein & M. G. Myriam Hunink, 2011. "The Combined Analysis of Uncertainty and Patient Heterogeneity in Medical Decision Models," Medical Decision Making, , vol. 31(4), pages 650-661, July.
    12. 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.
    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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gemma E. Shields & Paul Clarkson & Ash Bullement & Warren Stevens & Mark Wilberforce & Tracey Farragher & Arpana Verma & Linda M. Davies, 2024. "Advances in Addressing Patient Heterogeneity in Economic Evaluation: A Review of the Methods Literature," PharmacoEconomics, Springer, vol. 42(7), pages 737-749, July.

    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. deGrazia, Charles A.W. & Pairolero, Nicholas A. & Teodorescu, Mike H.M., 2021. "Examination incentives, learning, and patent office outcomes: The use of examiner’s amendments at the USPTO," Research Policy, Elsevier, vol. 50(10).
    5. 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.
    6. Wang, Lucy Xiaolu & Zahur, Nahim Bin, 2025. "Procurement institutions and essential drug supply in low and middle-income countries," Journal of Health Economics, Elsevier, vol. 101(C).
    7. 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.
    8. Gupta, Apoorva & Stiebale, Joel, 2024. "Gains from patent protection: Innovation, market power and cost savings in India," DICE Discussion Papers 414, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    9. Ljungqvist, Alexander & Farre-Mensa, Joan & Hegde, Deepak, 2016. "The Bright Side of Patents," CEPR Discussion Papers 11091, C.E.P.R. Discussion Papers.
    10. Wang, Lucy Xiaolu, 2022. "Global drug diffusion and innovation with the medicines patent pool," Journal of Health Economics, Elsevier, vol. 85(C).
    11. Alberto Galasso & Mark Schankerman, 2015. "Patent Rights, Innovation and Firm Exit," NBER Working Papers 21769, National Bureau of Economic Research, Inc.
    12. 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.
    13. 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.
    14. Gong, Robin Kaiji & Li, Yao Amber & Manova, Kalina & Sun, Stephen Teng, 2025. "Tickets to the global market: First US patent award and Chinese firm exports," Journal of International Economics, Elsevier, vol. 157(C).
    15. 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.
    16. 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.
    17. Schankerman, Mark & Galasso, Alberto, 2015. "Patents Rights, Innovation and Firm Exit," CEPR Discussion Papers 10968, C.E.P.R. Discussion Papers.
    18. Robin Mamrak, 2023. "Antitrust and (Foreign) Innovation: Evidence from the Xerox Case," Rationality and Competition Discussion Paper Series 396, CRC TRR 190 Rationality and Competition.
    19. Freilich, Janet & Shahshahani, Sepehr, 2023. "Measuring follow-on innovation," Research Policy, Elsevier, vol. 52(9).
    20. Elisabetta Gentile, 2017. "Intellectual Property Rights and Foreign Technology Licensing in Developing Countries: An Empirical Investigation," ADB Economics Working Paper Series 515, Asian Development Bank.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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.degruyterbrill.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.