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Australian guidelines for cost-effectiveness studies of pharmaceuticals: the thin end of the boomerang?

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Listed:
  • Mike Drummond

    (Centre for Health Economics, The University of York)

Abstract

In the summer of 1990, the Australian government took a major step by requiring evidence of cost-effectiveness of new medicines prior to reimbursement by the public health care system. This paper assesses whether the methodological principles behind the guidelines are sound and whether they raise important new logistical and policy implications. It is concluded that, whilst the guidelines may represent ‘the thin end of the wedge’ for the pharmaceutical industry, in that other countries may follow the Australian lead, they also may represent the ‘thin end of the boomerang’ for government. Namely, the development of explicit guidelines for public funding decisions concerning new health technologies, places as many demands on funders (the government) as it does on the suppliers (the industry).

Suggested Citation

  • Mike Drummond, 1991. "Australian guidelines for cost-effectiveness studies of pharmaceuticals: the thin end of the boomerang?," Working Papers 088chedp, Centre for Health Economics, University of York.
  • Handle: RePEc:chy:respap:88chedp
    as

    Download full text from publisher

    File URL: http://www.york.ac.uk/media/che/documents/papers/discussionpapers/CHE%20Discussion%20Paper%2088.pdf
    File Function: First version, 1991
    Download Restriction: no
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    References listed on IDEAS

    as
    1. Drummond, Michael F., 1987. "Economic evaluation and the rational diffusion and use of health technology," Health Policy, Elsevier, vol. 7(3), pages 309-324, June.
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    Cited by:

    1. Al, Maiwenn J. & Feenstra, Talitha & Brouwer, Werner B. F., 2004. "Decision makers' views on health care objectives and budget constraints: results from a pilot study," Health Policy, Elsevier, vol. 70(1), pages 33-48, October.
    2. Spencer, Anne & Rivero-Arias, Oliver & Wong, Ruth & Tsuchiya, Aki & Bleichrodt, Han & Edwards, Rhiannon Tudor & Norman, Richard & Lloyd, Andrew & Clarke, Philip, 2022. "The QALY at 50: One story many voices," Social Science & Medicine, Elsevier, vol. 296(C).

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