Cost-Utility Analysis Essay -- Economics

The central concern of economics is how dress hat to allocate scarce resources among competing uses. The same concern applies to the scope of wellness c ar. As a result, pharmacoeconomics, which compares the value of one pharmaceutical drug or drug therapy to another, became a prominent issue by the mid 1980s. There are several(prenominal) types of pharmacoeconomic evaluations, one of which is costutility analysis (CUA). CUA focuses on attribute of a health outcome produced or forgone by disparate health programs or treatments. CUA is a form of cost-effectiveness analysis (CEA) that attempts to capture timing and distance of disease and disability by comparing the utility (persons preference) associated with different health outcomes. (see Figure 1) It was originally called Generalized Cost-Effective Analysis as it is used to narrow the restrictiveness of traditional cost-effectiveness analysis. In 1972, it was renamed Utility maximation and then Healthy Status Index Model in 1976. Since 1982, it has been referred to as CUA in many countries, although the United States still called it CEA. Even though these devil terms are used interchangeably, there are still several distinguishing features between the two. Such differences include integration of multiple outcomes, , quantification of outcomes based on desirability, and measurement of relative desirability of outcomes with von Neumann-Morgenstern utility theory.A cost-utility analysis describes the supererogatory cost of the new intervention per unit of health gain and assesses health in terms of length and attribute of life using the quality adjusted life year (QALY). QALYs were invented in 1956 by two health economists, Christopher Cundell and Carlos McCartney. The concept of QALY was f... ...room/features/measuringeffectivenessandcosteffectivenesstheqaly.jspNeumann, P., Weinstein M. (2010, Oct 14). Legislating against use of cost-effectiveness information.The New England ledger of Medicine, Vol 363, 1495-1497. doi10.1056/NEJMp1007168. topographic point of Health Economics (2002). What is a QALY? Retrieved fromhttp//oheschools.org/ohech5pg4.htmlWilkerson J. (2011, Sep 28). PCORI head vows not to do cost-effectiveness studies, but notes gray areas.InsideHealthPolicy.com. Retrieved from http//insidehealthpolicy.com/Inside-Health-General/Public-Content/pcori-head-vows-not-to-do-cost-effectiveness-studies-but-notes-gray-areas/menu-id-869.html Yee, GC (1997, Dec 1). Cost-utility analysis of taxane therapy. American Journal of Health-SystemPharmacy, Vol 54, Supplement 2, S11-15. Retrieved from http//ajhp.org/content/54/suppl_2/S11.short