Literature DB >> 34258732

Methodological Note: Reporting Deterministic versus Probabilistic Results of Markov, Partitioned Survival and Other Non-Linear Models.

Edward C F Wilson1,2.   

Abstract

When making decisions under uncertainty, it is reasonable to choose the path that leads to the highest expected net benefit. Therefore, to inform decision making, decision-model-based health economic evaluations should always present expected outputs (i.e. the mean costs and outcomes associated with each course of action). In non-linear models such as Markov models, a single 'run' of the model with each input at its mean (a deterministic analysis) will not generate the expected value of the outputs. In a worst-case scenario, presenting deterministic analyses as the base case can lead to misleading recommendations. Therefore, the base-case analysis of a non-linear model should always be the means from a probabilistic analysis. In this paper, I explain why this is the case and provide recommendations for reporting economic evaluations based on Markov models, noting that the same principle applies to other non-linear structures such as partitioned survival models and individual sampling models. I also provide recommendations for conducting one-way sensitivity analyses of such models. Code illustrating the examples is provided in both Microsoft Excel and R, along with a video abstract and user guides in the electronic supplementary material. Supplementary file 6 (MP4 20900 kb).
© 2021. The Author(s), under exclusive licence to Springer Nature Switzerland AG.

Year:  2021        PMID: 34258732     DOI: 10.1007/s40258-021-00664-2

Source DB:  PubMed          Journal:  Appl Health Econ Health Policy        ISSN: 1175-5652            Impact factor:   2.561


  4 in total

1.  Probabilistic sensitivity analysis for NICE technology assessment: not an optional extra.

Authors:  Karl Claxton; Mark Sculpher; Chris McCabe; Andrew Briggs; Ron Akehurst; Martin Buxton; John Brazier; Tony O'Hagan
Journal:  Health Econ       Date:  2005-04       Impact factor: 3.046

2.  A practical guide to value of information analysis.

Authors:  Edward C F Wilson
Journal:  Pharmacoeconomics       Date:  2015-02       Impact factor: 4.981

3.  Calculating and Interpreting ICERs and Net Benefit.

Authors:  Mike Paulden
Journal:  Pharmacoeconomics       Date:  2020-08       Impact factor: 4.981

4.  One-Way Sensitivity Analysis for Probabilistic Cost-Effectiveness Analysis: Conditional Expected Incremental Net Benefit.

Authors:  Christopher McCabe; Mike Paulden; Isaac Awotwe; Andrew Sutton; Peter Hall
Journal:  Pharmacoeconomics       Date:  2020-02       Impact factor: 4.981

  4 in total
  1 in total

1.  Deterministic and Probabilistic Analysis of a Simple Markov Model: How Different Could They Be?

Authors:  Howard Thom
Journal:  Appl Health Econ Health Policy       Date:  2022-01-20       Impact factor: 3.686

  1 in total

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