Literature DB >> 15606227

The effect of cost construction based on either DRG or ICD-9 codes or risk group stratification on the resulting cost-effectiveness ratios.

Elinor C G Chumney1, Andrea K Biddle, Kit N Simpson, Morris Weinberger, Kathryn M Magruder, William N Zelman.   

Abstract

BACKGROUND: As cost-effectiveness analyses (CEAs) are increasingly used to inform policy decisions, there is a need for more information on how different cost determination methods affect cost estimates and the degree to which the resulting cost-effectiveness ratios (CERs) may be affected. The lack of specificity of diagnosis-related groups (DRGs) could mean that they are ill-suited for costing applications in CEAs. Yet, the implications of using International Classification of Diseases-9th edition (ICD-9) codes or a form of disease-specific risk group stratification instead of DRGs has yet to be clearly documented.
OBJECTIVE: To demonstrate the implications of different disease coding mechanisms on costs and the magnitude of error that could be introduced in head-to-head comparisons of resulting CERs.
METHODS: We based our analyses on a previously published Markov model for HIV/AIDS therapies. We used the Healthcare Cost and Utilisation Project Nationwide Inpatient Sample (HCUP-NIS) data release 6, which contains all-payer data on hospital inpatient stays from selected states. We added costs for the mean number of hospitalisations, derived from analyses based on either DRG or ICD-9 codes or risk group stratification cost weights, to the standard outpatient and prescription drug costs to yield an estimate of total charges for each AIDS-defining illness (ADI). Finally, we estimated the Markov model three times with the appropriate ADI cost weights to obtain CERs specific to the use of either DRG or ICD-9 codes or risk group.
RESULTS: Contrary to expectations, we found that the choice of coding/grouping assumptions that are disease-specific by either DRG codes, ICD-9 codes or risk group resulted in very similar CER estimates for highly active antiretroviral therapy. The large variations in the specific ADI cost weights across the three different coding approaches was especially interesting. However, because no one approach produced consistently higher estimates than the others, the Markov model's weighted cost per event and resulting CERs were remarkably close in value to one another.
CONCLUSION: Although DRG codes are based on broader categories and contain less information than ICD-9 codes, in practice the choice of whether to use DRGs or ICD-9 codes may have little effect on the CEA results in heterogeneous conditions such as HIV/AIDS.

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Year:  2004        PMID: 15606227     DOI: 10.2165/00019053-200422180-00005

Source DB:  PubMed          Journal:  Pharmacoeconomics        ISSN: 1170-7690            Impact factor:   4.981


  20 in total

1.  Design and analytic considerations in determining the cost-effectiveness of early intervention in asthma from a multinational clinical trial.

Authors:  S D Sullivan; B Liljas; M Buxton; C J Lamm; P O'Byrne; W C Tan; K B Weiss
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2.  Impact of zidovudine-based triple combination therapy on an AIDS drug assistance program.

Authors:  J A Mauskopf; J M Tolson; K N Simpson; S V Pham; J Albright
Journal:  J Acquir Immune Defic Syndr       Date:  2000-04-01       Impact factor: 3.731

3.  Cost effectiveness of antiviral treatment with zalcitabine plus zidovudine for AIDS patients with CD4+ counts less than 300/microliters in 5 European countries.

Authors:  K Simpson; E J Hatziandreu; F Andersson; A Shakespeare; I Oleksy; A N Tosteson
Journal:  Pharmacoeconomics       Date:  1994-12       Impact factor: 4.981

4.  Modeling the use of triple combination therapy in five countries: nevirapine, Zidovudine, and Didanosine.

Authors:  A K Biddle; K N Simpson
Journal:  Value Health       Date:  2000 May-Jun       Impact factor: 5.725

Review 5.  Evaluating the cost-effectiveness of pharmacologic therapy: where we've been and where we're going.

Authors:  A M Epstein
Journal:  J Acquir Immune Defic Syndr Hum Retrovirol       Date:  1995

6.  The quality of cost data. A caution from the Department of Veterans Affairs experience.

Authors:  R W Swindle; M C Beattie; P G Barnett
Journal:  Med Care       Date:  1996-03       Impact factor: 2.983

Review 7.  Valuation of medical resource units collected in health economic studies.

Authors:  C Copley-Merriman; T J Lair
Journal:  Clin Ther       Date:  1994 May-Jun       Impact factor: 3.393

8.  The cost-effectiveness of treatment with lamivudine and zidovudine compared with zidovudine alone: a comparison of Markov model and trial data estimates.

Authors:  J Mauskopf; L Lacey; A Kempel; K Simpson
Journal:  Am J Manag Care       Date:  1998-07       Impact factor: 2.229

9.  [Predictive factors of virologic response to antiretroviral treatment with a protease inhibitor in HIV infection].

Authors:  J L Meynard; M Guiguet; A Rachline; N Boukli; D Bollens; C Gentil; J Frottier; L Morand-Joubert
Journal:  Presse Med       Date:  2001-01-13       Impact factor: 1.228

10.  Diagnosis-based risk adjustment for Medicare capitation payments.

Authors:  R P Ellis; G C Pope; L Iezzoni; J Z Ayanian; D W Bates; H Burstin; A S Ash
Journal:  Health Care Financ Rev       Date:  1996
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Authors:  Hussam A Yacoub; Zaid A Al-Qudah; Hafiz M R Khan; Khosro Farhad; Andrew Bo-Hua Ji; Nizar Souayah
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3.  Costing and cost analysis in randomized controlled trials: caveat emptor.

Authors:  Daniel Polsky; Henry Glick
Journal:  Pharmacoeconomics       Date:  2009       Impact factor: 4.981

4.  Trends in Outcomes and Hospitalization Charges among Mechanically Ventilated Patients with Myasthenia Gravis in the United States.

Authors:  Nizar Souayah; Abu Nasar; M Fareed K Suri; Jawad F Kirmani; Mustapha A Ezzeddine; Adnan I Qureshi
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  4 in total

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