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Optimal healthcare decisions: Comparing medical treatments on a cost-effectiveness basis

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  • Moreno, Elías
  • Girón, F.J.
  • Vázquez-Polo, F.J.
  • NegrI´n, M.A.

Abstract

This paper deals with medical treatments comparison from the cost-effectiveness viewpoint. A decision theory scheme is considered, where the decision space is the set of treatments involved, the space of states of nature consists of the respective net benefits of the treatments, and the utility function is one of two possible candidates. A first candidate is the one typically used in the literature on cost-effectiveness analysis, for which the utility of a decision is proportional to the net benefit gain, and a second one is of the type 0-1, which penalizes the wrong decisions with a fixed quantity. Their associated optimal decision rules, both frequentist and Bayesian, are analyzed and compared via frequentist evaluation of their performance, and the conclusion is that the latter beats the former in the sense of choosing the optimal treatment more often than any other, thus minimizing the proportion of wrong decisions. Illustrations with simulated and real data are provided.

Suggested Citation

  • Moreno, Elías & Girón, F.J. & Vázquez-Polo, F.J. & NegrI´n, M.A., 2010. "Optimal healthcare decisions: Comparing medical treatments on a cost-effectiveness basis," European Journal of Operational Research, Elsevier, vol. 204(1), pages 180-187, July.
  • Handle: RePEc:eee:ejores:v:204:y:2010:i:1:p:180-187
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    References listed on IDEAS

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    7. Anthony O'Hagan & John W. Stevens, 2001. "A framework for cost‐effectiveness analysis from clinical trial data," Health Economics, John Wiley & Sons, Ltd., vol. 10(4), pages 303-315, June.
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    Citations

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    Cited by:

    1. Michał Jakubczyk & Bogumił Kamiński, 2017. "Fuzzy approach to decision analysis with multiple criteria and uncertainty in health technology assessment," Annals of Operations Research, Springer, vol. 251(1), pages 301-324, April.
    2. Musal, R. Muzaffer & Soyer, Refik & McCabe, Christopher & Kharroubi, Samer A., 2012. "Estimating the population utility function: A parametric Bayesian approach," European Journal of Operational Research, Elsevier, vol. 218(2), pages 538-547.
    3. Moreno, E. & Girón, F.J. & Martínez, M.L. & Vázquez-Polo, F.J. & Negrín, M.A., 2013. "Optimal treatments in cost-effectiveness analysis in the presence of covariates: Improving patient subgroup definition," European Journal of Operational Research, Elsevier, vol. 226(1), pages 173-182.
    4. Moreno, Elías & Girón, F.J. & Vázquez-Polo, F.J. & Negrín, M.A., 2012. "Optimal healthcare decisions: The importance of the covariates in cost–effectiveness analysis," European Journal of Operational Research, Elsevier, vol. 218(2), pages 512-522.
    5. Chen, Ting-Yu & Chang, Chien-Hung & Rachel Lu, Jui-fen, 2013. "The extended QUALIFLEX method for multiple criteria decision analysis based on interval type-2 fuzzy sets and applications to medical decision making," European Journal of Operational Research, Elsevier, vol. 226(3), pages 615-625.

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