IDEAS home Printed from https://ideas.repec.org/p/col/000089/021041.html
   My bibliography  Save this paper

The Health Technology Assessment Approach of The Economic Value of Diagnostic Test: A Literature Review

Author

Listed:
  • David Bardey

    (Universidad de los Andes)

  • Philippe De Donder

    (TSE - CNRS)

  • Vera Zaporozhets

    (TSE - INRAe)

Abstract

We review the medico-economic literature assessing the economic value of diagnostic tests. We first present the health technology assessment methods, as applied to generic health interventions. We then define our object of study, diagnostic and prognostic tests, and relate them to various definitions of personalized medicine. We then review the empirical assessments of diagnostic tests related to personalized medicine and of companion tests. We summarize systematic reviews which are not performing quantitative meta-analyses, but rather provide a descriptive synthesis of the results reviewed. We find no evidence that such tests perform better than more traditional approaches, such as pharmaceutical interventions. At the same time, there is a lot of heterogeneity in the cost per QALY (Quality-Adjusted Life Year) gained, so that some genetic testing procedures may perform better than non-genetic ones. Finally, we focus on imperfect tests and show how to optimize, from an economic perspective, their accuracy levels, and how to take accuracy levels into considerations when assessing their economic value.

Suggested Citation

  • David Bardey & Philippe De Donder & Vera Zaporozhets, 2024. "The Health Technology Assessment Approach of The Economic Value of Diagnostic Test: A Literature Review," Documentos CEDE 21041, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:021041
    as

    Download full text from publisher

    File URL: https://repositorio.uniandes.edu.co/bitstreams/handle/1992/74009/dcede2024-06.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. K. Drakopoulos & R. S. Randhawa, 2021. "Why Perfect Tests May Not Be Worth Waiting For: Information as a Commodity," Management Science, INFORMS, vol. 67(11), pages 6678-6693, November.
    2. Garber, Alan M. & Phelps, Charles E., 1997. "Economic foundations of cost-effectiveness analysis," Journal of Health Economics, Elsevier, vol. 16(1), pages 1-31, February.
    3. Khachapon Nimdet & Nathorn Chaiyakunapruk & Kittaya Vichansavakul & Surachat Ngorsuraches, 2015. "A Systematic Review of Studies Eliciting Willingness-to-Pay per Quality-Adjusted Life Year: Does It Justify CE Threshold?," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-16, April.
    4. Richard A. Hirth & Michael E. Chernew & Edward Miller & A. Mark Fendrick & William G. Weissert, 2000. "Willingness to Pay for a Quality-adjusted Life Year," Medical Decision Making, , vol. 20(3), pages 332-342, July.
    5. George Laking & Joanne Lord & Alastair Fischer, 2006. "The economics of diagnosis," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1109-1120, October.
    6. Alexander J. Sutton & Nicola J. Cooper & Steve Goodacre & Matthew Stevenson, 2008. "Integration of Meta-analysis and Economic Decision Modeling for Evaluating Diagnostic Tests," Medical Decision Making, , vol. 28(5), pages 650-667, September.
    7. Robert J. Brent, 2023. "Cost-Benefit Analysis versus Cost-Effectiveness Analysis from a Societal Perspective in Healthcare," IJERPH, MDPI, vol. 20(5), pages 1-12, March.
    8. Tristan Snowsill, 2023. "Modelling the Cost-Effectiveness of Diagnostic Tests," PharmacoEconomics, Springer, vol. 41(4), pages 339-351, April.
    9. Linda Ryen & Mikael Svensson, 2015. "The Willingness to Pay for a Quality Adjusted Life Year: A Review of the Empirical Literature," Health Economics, John Wiley & Sons, Ltd., vol. 24(10), pages 1289-1301, October.
    10. Peter Klibanoff & Massimo Marinacci & Sujoy Mukerji, 2005. "A Smooth Model of Decision Making under Ambiguity," Econometrica, Econometric Society, vol. 73(6), pages 1849-1892, November.
    11. Baker, Rachel & Chilton, Sue & Donaldson, Cam & Jones-Lee, Michael & Lancsar, Emily & Mason, Helen & Metcalf, Hugh & Pennington, Mark & Wildman, John, 2011. "Searchers vs surveyors in estimating the monetary value of a QALY: resolving a nasty dilemma for NICE," Health Economics, Policy and Law, Cambridge University Press, vol. 6(4), pages 435-447, October.
    12. Brouwer, Werner B. F. & Koopmanschap, Marc A., 2000. "On the economic foundations of CEA. Ladies and gentlemen, take your positions!," Journal of Health Economics, Elsevier, vol. 19(4), pages 439-459, July.
    13. Charles E. Phelps & Alvin I. Mushlin, 1988. "Focusing Technology Assessment Using Medical Decision Theory," Medical Decision Making, , vol. 8(4), pages 279-289, December.
    14. Michael A. Kohn & Thomas B. Newman, 2001. "What White Blood Cell Count Should Prompt Antibiotic Treatment in a Febrile Child? Tutorial on the Importance of Disease Likelihood to the Interpretation of Diagnostic Tests," Medical Decision Making, , vol. 21(6), pages 479-489, December.
    15. Stefan Felder, 2022. "Decision thresholds with genetic testing," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(6), pages 1071-1078, August.
    16. Ana Beatriz D′Avó Luís & Mikyung Kelly Seo, 2021. "Has the development of cancer biomarkers to guide treatment improved health outcomes?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(5), pages 789-810, July.
    17. Maximilian Hatz & Katharina Schremser & Wolf Rogowski, 2014. "Is Individualized Medicine More Cost-Effective? A Systematic Review," PharmacoEconomics, Springer, vol. 32(5), pages 443-455, May.
    18. Garber, Alan M., 2000. "Advances in cost-effectiveness analysis of health interventions," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 4, pages 181-221, Elsevier.
    19. Drummond, Michael F. & Sculpher, Mark J. & Claxton, Karl & Stoddart, Greg L. & Torrance, George W., 2015. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 4, number 9780199665884, Decembrie.
    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. Christian R. C. Kouakou & Thomas G. Poder, 2022. "Willingness to pay for a quality-adjusted life year: a systematic review with meta-regression," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 277-299, March.
    2. Herrera-Araujo, Daniel & Hammitt, James K. & Rheinberger, Christoph M., 2020. "Theoretical bounds on the value of improved health," Journal of Health Economics, Elsevier, vol. 72(C).
    3. Daniel Bauer & Darius Lakdawalla & Julian Reif, 2018. "Mortality Risk, Insurance, and the Value of Life," NBER Working Papers 25055, National Bureau of Economic Research, Inc.
    4. Afentoula G. Mavrodi & Vassilis H. Aletras, 2019. "Preliminary Results of a Healthcare Contingent Valuation Study in Greece," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 9(3-4), pages 3-16.
    5. S. Olofsson & U.-G. Gerdtham & L. Hultkrantz & U. Persson, 2019. "Value of a QALY and VSI estimated with the chained approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1063-1077, September.
    6. Shafrin, Jason & Skornicki, Michelle & Brauer, Michelle & Villeneuve, Julie & Lees, Michael & Hertel, Nadine & Penrod, John R. & Jansen, Jeroen, 2018. "An exploratory case study of the impact of expanding cost-effectiveness analysis for second-line nivolumab for patients with squamous non-small cell lung cancer in Canada: Does it make a difference?," Health Policy, Elsevier, vol. 122(6), pages 607-613.
    7. Bengt Liljas & Göran S. Karlsson & Nils‐Olov Stålhammar, 2008. "On future non‐medical costs in economic evaluations," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 579-591, May.
    8. Scott Johnson & Matthew Davis & Anna Kaltenboeck & Howard Birnbaum & ElizaBeth Grubb & Marcy Tarrants & Andrew Siderowf, 2011. "Early retirement and income loss in patients with early and advanced Parkinson’s disease," Applied Health Economics and Health Policy, Springer, vol. 9(6), pages 367-376, November.
    9. Richard H. Chapman & Marc Berger & Milton C. Weinstein & Jane C. Weeks & Sue Goldie & Peter J. Neumann, 2004. "When does quality‐adjusting life‐years matter in cost‐effectiveness analysis?," Health Economics, John Wiley & Sons, Ltd., vol. 13(5), pages 429-436, May.
    10. Hui Zhang & Christian Wernz & Danny R. Hughes, 2018. "Modeling and designing health care payment innovations for medical imaging," Health Care Management Science, Springer, vol. 21(1), pages 37-51, March.
    11. McNamara, Simon & Tsuchiya, Aki & Holmes, John, 2025. "Corrigendum to ‘Does the UK-public's aversion to inequalities in health differ by group-labelling and health-gain type? A choice-experiment’ [Soc. Sci. Med. Volume 269, January 2021, 113573]," Social Science & Medicine, Elsevier, vol. 370(C).
    12. Charles F. Manski, 2018. "Reasonable patient care under uncertainty," Health Economics, John Wiley & Sons, Ltd., vol. 27(10), pages 1397-1421, October.
    13. Ryen, Linda & Svensson, Mikael, 2014. "The Willingness to Pay for a QALY: a Review of the Empirical Literature," Karlstad University Working Papers in Economics 12, Karlstad University, Department of Economics.
    14. Smith, Richard D. & Richardson, Jeff, 2005. "Can we estimate the `social' value of a QALY?: Four core issues to resolve," Health Policy, Elsevier, vol. 74(1), pages 77-84, September.
    15. Kevin Haninger & James K. Hammitt, 2011. "Diminishing Willingness to Pay per Quality‐Adjusted Life Year: Valuing Acute Foodborne Illness," Risk Analysis, John Wiley & Sons, vol. 31(9), pages 1363-1380, September.
    16. Arthur E. Attema & Marieke Krol & Job Exel & Werner B. F. Brouwer, 2018. "New findings from the time trade-off for income approach to elicit willingness to pay for a quality adjusted life year," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(2), pages 277-291, March.
    17. Bardey, David & De Donder , Philippe & Zaporozhets , Vera, 2024. "Economic Incentives to Develop and to Use Diagnostic Tests a Literature Review," Documentos CEDE 21024, Universidad de los Andes, Facultad de Economía, CEDE.
    18. Henrik Andersson & Nicolas Treich, 2011. "The Value of a Statistical Life," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 17, Edward Elgar Publishing.
    19. Claxton, Karl & Asaria, Miqdad & Chansa, Collins & Jamison, Julian & Lomas, James & Ochalek, Jessica & Paulden, Mike, 2019. "Accounting for timing when assessing health-related policies," LSE Research Online Documents on Economics 100038, London School of Economics and Political Science, LSE Library.
    20. Hoel, Michael, 2007. "What should (public) health insurance cover?," Journal of Health Economics, Elsevier, vol. 26(2), pages 251-262, March.

    More about this item

    Keywords

    genetic tests; companion tests; cost-benefit analysis (CBA); cost-effectiveness analysis (CEA); cost;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:col:000089:021041. 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: Universidad De Los Andes-Cede (email available below). General contact details of provider: https://edirc.repec.org/data/ceandco.html .

    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.