IDEAS home Printed from https://ideas.repec.org/a/kap/hcarem/v16y2013i2p87-100.html

Tradeoffs in cardiovascular disease prevention, treatment, and research

Author

Listed:
  • George Miller

  • Matthew Daly
  • Charles Roehrig

Abstract

It is widely believed that the US health care system needs to transition from a culture of reactive treatment of disease to one of proactive prevention. As a tool for understanding the appropriate allocation of spending to prevention versus treatment (including research into improved prevention and treatment), a simple Markov model is used to represent the flow of individuals among states of health, where the transition rates are governed by the magnitude of appropriately-lagged expenditures in each of these categories. The model estimates the discounted cost and discounted effectiveness (measured in quality adjusted life years or QALYs) associated with a given spending mix, and it allows computing the marginal cost-effectiveness associated with additional spending in a category. We apply the model to explore interactions of alternative investments in cardiovascular disease (CVD) and to identify an optimal spending mix. Under the assumptions of our model structure, we find that the marginal cost-effectiveness of prevention of CVD varies with changes in spending on treatment (and vice versa), and that the optimal mix of CVD spending (i.e., the spending mix that maximizes the overall QALYs achieved) would, indeed, shift spending from treatment to prevention. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • George Miller & Matthew Daly & Charles Roehrig, 2013. "Tradeoffs in cardiovascular disease prevention, treatment, and research," Health Care Management Science, Springer, vol. 16(2), pages 87-100, June.
  • Handle: RePEc:kap:hcarem:v:16:y:2013:i:2:p:87-100
    DOI: 10.1007/s10729-012-9215-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10729-012-9215-x
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10729-012-9215-x?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. Jonathan Skinner & Douglas Staiger, 2015. "Technology Diffusion and Productivity Growth in Health Care," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 951-964, December.
    2. Frank R. Lichtenberg, 2006. "The Impact of New Laboratory Procedures and Other Medical Innovations on the Health of Americans, 1990-2003: Evidence from Longitudinal, Disease-Level Data," NBER Working Papers 12120, National Bureau of Economic Research, Inc.
    3. Homer, J.B. & Hirsch, G.B., 2006. "System dynamics modeling for public health: Background and opportunities," American Journal of Public Health, American Public Health Association, vol. 96(3), pages 452-458.
    4. Tassey, Gregory, 2005. "The disaggregated technology production function: A new model of university and corporate research," Research Policy, Elsevier, vol. 34(3), pages 287-303, April.
    5. Heffley, Dennis R., 1982. "Allocating health expenditures to treatment and prevention," Journal of Health Economics, Elsevier, vol. 1(3), pages 265-290, December.
    6. Frank R. Lichtenberg, 2014. "Has Medical Innovation Reduced Cancer Mortality?," CESifo Economic Studies, CESifo Group, vol. 60(1), pages 135-177.
    Full references (including those not matched with items on IDEAS)

    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. Gersbach, Hans & Schneider, Maik & Schneller, Olivier, 2010. "Optimal Mix of Applied and Basic Research, Distance to Frontier, and Openness," CEPR Discussion Papers 7795, Centre for Economic Policy Research.
    2. Chang, Pao-Long & Ho, Shu-Ping & Hsu, Chiung-Wen, 2013. "Dynamic simulation of government subsidy policy effects on solar water heaters installation in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 385-396.
    3. Meimei Wang & Steffen Flessa, 2020. "Modelling Covid-19 under uncertainty: what can we expect?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(5), pages 665-668, July.
    4. Amitabh Chandra & Amy Finkelstein & Adam Sacarny & Chad Syverson, 2016. "Health Care Exceptionalism? Performance and Allocation in the US Health Care Sector," American Economic Review, American Economic Association, vol. 106(8), pages 2110-2144, August.
    5. Maynou, L. & McGuire, A. & Serra-Sastre, V., 2019. "Exploring the Impact of New Medical Technology on Workforce Planning," Working Papers 19/07, Department of Economics, City St George's, University of London.
    6. Baltagi, Badi H. & Yen, Yin-Fang, 2014. "Hospital treatment rates and spillover effects: Does ownership matter?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 193-202.
    7. repec:plo:pone00:0185238 is not listed on IDEAS
    8. John A. Romley & Abe Dunn & Dana Goldman & Neeraj Sood, 2020. "Quantifying Productivity Growth in the Delivery of Important Episodes of Care within the Medicare Program Using Insurance Claims and Administrative Data," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 297-338, National Bureau of Economic Research, Inc.
    9. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    10. Niek Stadhouders & Xander Koolman & Christel van Dijk & Patrick Jeurissen & Eddy Adang, 2019. "The marginal benefits of healthcare spending in the Netherlands: Estimating cost‐effectiveness thresholds using a translog production function," Health Economics, John Wiley & Sons, Ltd., vol. 28(11), pages 1331-1344, November.
    11. Karen Minyard & Tina A. Smith & Richard Turner & Bobby Milstein & Lori Solomon, 2018. "Community and programmatic factors influencing effective use of system dynamic models," System Dynamics Review, System Dynamics Society, vol. 34(1-2), pages 154-171, January.
    12. Cristiano Antonelli, 2017. "The derived demand for knowledge," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(1-2), pages 183-194, February.
    13. Karl M Rich & Matthew J Denwood & Alistair W Stott & Dominic J Mellor & Stuart W J Reid & George J Gunn, 2013. "Systems Approaches to Animal Disease Surveillance and Resource Allocation: Methodological Frameworks for Behavioral Analysis," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-1, November.
    14. Bianca Cezara Archip & Ioan Banatean-Dunea & Dacinia Crina Petrescu & Ruxandra Malina Petrescu-Mag, 2023. "Determinants of Food Waste in Cluj-Napoca (Romania): A Community-Based System Dynamics Approach," IJERPH, MDPI, vol. 20(3), pages 1-22, January.
    15. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.
    16. Md Mahfuzur Rahman & Rubayet Karim & Md. Moniruzzaman & Md. Afjal Hossain & Hammad Younes, 2023. "Modeling Hospital Operating Theater Services: A System Dynamics Approach," Logistics, MDPI, vol. 7(4), pages 1-21, November.
    17. Douglas, Conor M.W. & Panagiotoglou, Dimitra & Dragojlovic, Nick & Lynd, Larry, 2021. "Methodology for constructing scenarios for health policy research: The case of coverage decision-making for drugs for rare diseases in Canada," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    18. Peipei Chai & Quan Wan & Yohannes Kinfu, 2021. "Efficiency and productivity of health systems in prevention and control of non-communicable diseases in China, 2008–2015," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(2), pages 267-279, March.
    19. Erika Palmer, 2018. "The Heavy Cost of Care: Systemic Challenges in Norwegian Work Absenteeism," Social Sciences, MDPI, vol. 7(6), pages 1-17, June.
    20. Cristian Mahulea & Liliana Mahulea & Juan Manuel García Soriano & José Manuel Colom, 2018. "Modular Petri net modeling of healthcare systems," Flexible Services and Manufacturing Journal, Springer, vol. 30(1), pages 329-357, June.
    21. Francesco D'Acunto & Nagpurnanand Prabhala & Alberto G. Rossi, 2018. "The Promises and Pitfalls of Robo-advising," CESifo Working Paper Series 6907, CESifo.

    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:kap:hcarem:v:16:y:2013:i:2:p:87-100. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.