| Literature DB >> 35633404 |
Euan Barlow1, Alec Morton2, Saudamini Dabak3, Sven Engels3, Wanrudee Isaranuwatchai3,4, Yot Teerawattananon3,5, Kalipso Chalkidou6,7.
Abstract
Many countries seek to secure efficiency in health spending through establishing explicit priority setting institutions (PSIs). Since such institutions divert resources from frontline services which benefit patients directly, it is legitimate and reasonable to ask whether they are worth the money. We address this question by comparing, through simulation, the health benefits and costs from implementing two alternative funding approaches - one scenario in which an active PSI enables cost-effectiveness-threshold based funding decisions, and a counterfactual scenario where there is no PSI. We present indicative results for one dataset from the United Kingdom (published in 2015) and one from Malawi (published in 2018), which show that the threshold rule reliably resulted in decreased health system costs, improved health benefits, or both. Our model is implemented in Microsoft Excel and designed to be user-friendly, and both the model and a user guide are made publicly available, in order to enable others to parameterise the model based on the local setting. Although inevitably stylised, we believe that our modelling and results offer a valid perspective on the added value of explicit PSIs.Entities:
Keywords: Cost-effectiveness thresholding; Health technology assessment; Portfolio decision analysis; Priority setting institutions; Simulation
Mesh:
Year: 2022 PMID: 35633404 PMCID: PMC9474606 DOI: 10.1007/s10729-022-09594-4
Source DB: PubMed Journal: Health Care Manag Sci ISSN: 1386-9620
Summary of the comparison investigations analysed in Section 4
| Name of case | Description of PSI rule | Description of counterfactual rule | Corresponding equations (refer to Section |
|---|---|---|---|
| (i) Threshold rule | Fund interventions with cost-effectiveness ratio below the threshold | Fund random selection of interventions | (5) and (3) |
| (ii) Threshold rule with budget constraint | Fund interventions with cost-effectiveness ratio below the threshold and within the limited budget | Fund random selection of interventions within limited budget | (6) and (4) |
| (iii) Threshold rule with limited analysis capacity | Fund interventions with cost-effectiveness ratio below the threshold within the limited budget and with static limit on application of threshold rule | Fund random selection of interventions within limited budget | (7) and (4) |
| (iv) Threshold rule with phased run-in | Fund interventions with cost-effectiveness ratio below the threshold within the limited budget and with limit on application of threshold rule relaxing over time | Fund random selection of interventions within limited budget | (8) and (4) |
Stochastic model parameters (describing each intervention within each simulation) used for the Section 4 and Appendix 4 investigations
| Sampled components of | Symbol | Distribution | Parameterisation |
|---|---|---|---|
| QALY increment of | Log-normal | ||
| Cost increment of | Log-normal | ||
| Number of cases impacted by | Log-normal |
Input parameters used for the Section 4 investigations
| Intervention measure | Country data-set | Relevant data for calculation and source | Symbol | Input parameter value |
|---|---|---|---|---|
| Intervention QALY increment | UK | 0.62 | ||
| 1.18 | ||||
| Malawi | 7.05 | |||
| 16.93 | ||||
| Intervention cost increment | UK | £9.14k | ||
| £19.05k | ||||
| Malawi | ||||
| Number of cases per intervention (thousands) | UK | 540.22 | ||
| 595.41 | ||||
| Malawi | 1464.74 | |||
| 2910.67 | ||||
| Number of interventions considered for funding | UK | Taken from Guthrie et al. [ | 74 | |
| Malawi | See Appendix | 40 | ||
| CER threshold required for funding | UK | Taken from Guthrie et al. [ | £20k | |
| Malawi | See Appendix | |||
| Annual budget limit to fund interventions | UK | See Appendix | £75,000M | |
| Malawi | ||||
| Number of interventions funded annually | UK | 48 | ||
| Malawi | 14 | |||
| Annual percentage of high-value interventions assessed using the threshold | Both | |||
| Total number of years of phased increases to the PSI capability | ||||
| Target percentage of interventions assessed by the PSI in the final year of phased increases |
Summary results from the Case (i) simulations comparing the PSI-absent (Absent) and PSI-active (Active) funding scenarios. Input data is parameterised from the indicative UK and Malawi data-sets as presented in Appendix 1. For each performance measure and each correlation level, the best performing scenario is marked in bold
| Indicative data-set | Output measure | Correlation | Funding approach | |
|---|---|---|---|---|
| Absent | Active | |||
| UK | Average total cost (£M) | 0.2 | 237,772 | |
| 0.5 | 229,362 | |||
| 0.8 | 235,271 | |||
| Average total QALY (thousands) | 0.2 | 16,444 | ||
| 0.5 | 15,713 | |||
| 0.8 | 16,034 | |||
| Average number of interventions funded | 0.2 | 44.58 | ||
| 0.5 | 47.6 | |||
| 0.8 | 48 | |||
| Expected ICER per funding cycle | 0.2 | 15.75 | ||
| 0.5 | 15.24 | |||
| 0.8 | 14.88 | |||
| Expected NHB of PSI-active scenario compared to PSI-absent scenario (thousand QALYs per funding cycle) | 0.2 | |||
| 0.5 | ||||
| 0.8 | ||||
| Malawi | Average total cost ($M) | 0.2 | 333 | |
| 0.5 | 333 | |||
| 0.8 | 339 | |||
| Average total DALY (thousands) | 0.2 | 146,278 | ||
| 0.5 | 144,431 | |||
| 0.8 | 151,685 | |||
| Average number of interventions funded | 0.2 | 14 | ||
| 0.5 | 13.64 | |||
| 0.8 | 10.03 | |||
| Expected ICER per funding cycle | 0.2 | 0.0032 | ||
| 0.5 | 0.0029 | |||
| 0.8 | 0.0026 | |||
| Expected NHB of PSI-active scenario compared to PSI-absent scenario (thousand DALYs per funding cycle) | 0.2 | |||
| 0.5 | ||||
| 0.8 | ||||
Fig. 1Distribution of total incremental expenditure per funding cycle for each decision rule. (a) Indicative UK data, (b) Indicative Malawi data
Fig. 2Distribution of total incremental QALY gain per funding cycle for each decision rule. (a) Indicative UK data, (b) Indicative Malawi data
Fig. 3Distribution of the difference in the total cost of funded interventions (Eq. (9)) against the difference in the total health benefit gain of funded interventions (Eq. (10)), per funding cycle for each decision rule. (a) Indicative UK data, (b) Indicative Malawi data
Classification of the total cost increment (Eq. (9)) and the total health benefit increment (Eq. (10)) per simulation for the Case (i) investigation, for the indicative UK and Malawi data-sets. For each data-set, the percentage of simulations with a positive cost increment (that is, the funded interventions are more expensive in the PSI-active scenario) and also a negative health benefit increment (that is, the funded interventions produce fewer health benefits in the PSI-active scenario) is marked in bold
| Classification | Totals (%) | |||
|---|---|---|---|---|
| UK | 11.2 | 11.2 | ||
| 16 | 72.8 | 88.8 | ||
| Totals (%) | 16 | 84 | 100 | |
| Malawi | 31.7 | 31.7 | ||
| 18.3 | 50 | 68.3 | ||
| Totals (%) | 18.3 | 81.7 | 100 |
Fig. 4Distribution of the difference in the total cost of funded interventions (Eq. (9)) against the difference in the total health benefit gain of funded interventions (Eq. (10)), per funding cycle for each decision rule, with budget limits. (a) Indicative UK data, (b) Indicative Malawi data
Classification of the total cost increment (Eq. (9)) and the total health benefit increment (Eq. (10)) per simulation for the Case (ii) investigation, for the indicative UK and Malawi data-sets. For each data-set, the percentage of simulations with a positive cost increment (that is, the funded interventions are more expensive in the PSI-active scenario) and also a negative health benefit increment (that is, the funded interventions produce fewer health benefits in the PSI-active scenario) is marked in bold
| Classification | Totals (%) | |||
|---|---|---|---|---|
| UK | 25.5 | 25.7 | ||
| 0.3 | 74 | 74.3 | ||
| Totals (%) | 0.5 | 99.5 | 100 | |
| Malawi | 4.7 | 4.8 | ||
| 7.3 | 87.9 | 95.2 | ||
| Totals (%) | 7.4 | 92.6 | 100 |
Fig. 5Distribution of the difference in the total cost of funded interventions (Eq. (9)) against the difference in the total health benefit gain of funded interventions (Eq. (10)), per funding cycle for each decision rule, with limited application of threshold rule. (a) Indicative UK data, (b) Indicative Malawi data
Classification of the total cost increment (Eq. (9)) and the total health benefit increment (Eq. (10)) per simulation for the Case (iii) investigation, for the indicative UK and Malawi data-sets. For each data-set, the percentage of simulations with a positive cost increment (that is, the funded interventions are more expensive in the PSI-active scenario) and also a negative health benefit increment (that is, the funded interventions produce fewer health benefits in the PSI-active scenario) is marked in bold
| Classification | Totals (%) | |||
|---|---|---|---|---|
| UK | 47.1 | 57.7 | ||
| 7 | 35.3 | 42.3 | ||
| Totals (%) | 17.6 | 82.4 | 100 | |
| Malawi | 42.4 | 46.4 | ||
| 9.6 | 44 | 53.6 | ||
| Totals (%) | 13.6 | 86.4 | 100 |
Fig. 6Distribution of the difference in the total cost of funded interventions (Eq. (9)) against the difference in the total health benefit gain of funded interventions (Eq. (10)), per funding cycle for each decision rule, with phased increase of the application of the threshold rule. (a) Indicative UK data, (b) Indicative Malawi data
Classification of the total cost increment (Eq. (9)) and the total health benefit increment (Eq. (10)) per simulation for the Case (iv) investigation, for the indicative UK and Malawi data-sets. For each data-set, the percentage of simulations with a positive cost increment (that is, the funded interventions are more expensive) and also a negative health benefit increment (that is, the funded interventions produce fewer health benefits) is marked in bold
| Classification | Totals (%) | |||
|---|---|---|---|---|
| UK | 80.3 | 82.4 | ||
| 0.3 | 17.3 | 17.6 | ||
| Totals (%) | 2.4 | 97.6 | 100 | |
| Malawi | 18.6 | 18.7 | ||
| 0.4 | 80.9 | 81.3 | ||
| Totals (%) | 0.5 | 99.5 | 100 |
Table of indicative heath interventions considered for funding in the UK, extracted from Guthrie et al. [10]
| Study Authors | QALY increment | Cost increment (2012 prices) | Number of cases in the UK | |
|---|---|---|---|---|
| 1 | Peek et al. (2010) | 3.66 | 59,415.7 | 350 |
| 2 | Carroll et al. (2011) | 0.58 | 7952 | 14,479 |
| 3 | Vickers et al. (2004) | 0.021 | 252.4 | 723,236 |
| 4 | Gilbert et al. (2004) | 0.07 | 92.85 | 260,000 |
| 5 | McCarthy et al. (2004) | 0 | -8 | 1,322,709 |
| 6 | Cochrane et al. (2005) | 0.024 | 0.08 | 1,763,613 |
| 7 | Lamb et al. (2010) | 0.099 | 196 | 598,000 |
| 8 | Pandor et al. (2013) | 0.1038 | 992 | 504,689 |
| 9 | Orlando et al. (2013) | 1.6239 | 22,528 | 947 |
| 10 | Kitchener et al. (2009) | 0 | -14 | 214,138 |
Table of indicative heath interventions considered for funding in Malawi, extracted from Ochalek et al. [23]
| Intervention | Total DALYS averted | Total cost ($1000 s) | Cases per annum (1000 s) | |
|---|---|---|---|---|
| 1 | Male circumcision | 39,634 | 146,730 | 4073 |
| 2 | Management of obstructed labour | 2497 | 1100 | 92 |
| 3 | Isoniazid preventive therapy for HIV + no TB | 1118 | 80 | 55 |
| 4 | First-line treatment for new TB cases for adults | 1045 | 178 | 14 |
| 5 | First-line treatment for new TB cases for children | 888 | 117 | 12 |
| 6 | Management of pre-eclampsia (magnesium sulfate) | 535 | 45 | 20 |
| 7 | Clean practices and immediate essential newborn care (home) | 237 | 416 | 671 |
| 8 | Households owning at least one ITN/LLIN | 228 | 13,737 | 6752 |
| 9 | Caesarean section | 327 | 672 | 34 |
| 10 | Mass media | 150 | 7609 | 16,879 |
| 11 | Labour and delivery management | 170 | 1281 | 918 |
| 12 | PMTCT of HIV | 157 | 600 | 53 |
| 13 | First-line treatment for retreatment TB cases for adults | 131 | 100 | 2 |
| 14 | Caesarean section (with complication) | 137 | 172 | 5 |
| 15 | First-line treatment for retreatment TB cases for children | 111 | 66 | 2 |
| 16 | Malaria treatment: first trimester— uncomplicated | 109 | 1025 | 305 |
| 17 | Malaria treatment: Second trimester—uncomplicated | 109 | 235 | 305 |
| 18 | Voluntary counselling and testing | 167 | 36,309 | 8031 |
| 19 | Tetanus toxoid (pregnant women) | 104 | 115 | 918 |
| 20 | Measles vaccine | 107 | 528 | 651 |
| 21 | Rotavirus vaccine | 88 | 3097 | 651 |
| 22 | Antenatal care (four visits) | 90 | 11,230 | 918 |
| 23 | Malaria treatment: uncomplicated (adult, < 36 kg) | 59 | 3463 | 4372 |
| 24 | Malaria treatment: uncomplicated (adult, > 36 kg) | 59 | 4267 | 4372 |
| 25 | Malaria treatment: uncomplicated—second line (adult, > 36 kg) | 59 | 1186 | 4372 |
| 26 | Malaria treatment: uncomplicated—second line (adult, < 36 kg) | 59 | 593 | 4372 |
| 27 | Vaginal delivery, skilled attendance | 67 | 5181 | 918 |
| 28 | Isoniazid preventive therapy for children in contact with patients with TB | 45 | 7 | 2 |
| 29 | Interventions focused on men who have sex with men | 232 | 1256 | 34 |
| 30 | Pregnant women sleeping under an ITN | 50 | 2990 | 1469 |
| 31 | Newborn sepsis—full supportive care | 60 | 417 | 81 |
| 32 | Management of severe malnutrition (children) | 199 | 2437 | 51 |
| 33 | Vitamin A supplementation in pregnant women | 33 | 125 | 124 |
| 34 | Antenatal corticosteroids for preterm labour | 47 | 406 | 165 |
| 35 | Interventions focused on female sex workers | 161 | 655 | 23 |
| 36 | Cotrimoxazole for children | 0 | 220 | 127 |
| 37 | Malaria treatment: uncomplicated (children, < 15 kg) | 14 | 4576 | 1042 |
| 38 | Malaria treatment: uncomplicated (children, > 15 kg) | 14 | 4768 | 1042 |
| 39 | Malaria treatment: uncomplicated—second line (children, < 15 kg) | 14 | 35 | 1042 |
| 40 | Malaria treatment: uncomplicated—second line (children, > 15 kg) | 14 | 71 | 1042 |
| 41 | Under five children who slept under ITN/LLIN | 17 | 1006 | 494 |
| 42 | Schistosomiasis mass drug administration | 24 | 77 | 389 |
| 43 | Antibiotics for pPRoM | 30 | 39 | 64 |
| 44 | Blood safety | 12 | 1626 | 40 |
| 45 | Vaginal delivery, with complication | 10 | 804 | 138 |
| 46 | Maternal sepsis case management | 20 | 2731 | 64 |
| 47 | Malaria treatment: pregnant Women —complicated | 6 | 140 | 16 |
| 48 | Case management of MDR TB cases | 5 | 12 | 0.4 |
| 49 | GIT tract cancer | 0 | 3 | 0.4 |
| 50 | Cervical cancer (first line) | 0 | 162 | 2 |
| 51 | Ischaemic heart disease | 0 | 4 | 128 |
| 52 | IPT of malaria (pregnant women) | 0 | 35 | 735 |
| 53 | Diabetes, type I | 0 | 4304 | 23 |
| 54 | High cholesterol | 1 | 6703 | 223 |
| 55 | Basic psychosocial support, advice and follow-up, plus antiepileptic medication | 1 | 1266 | 506 |
| 56 | Treatment of depression | 0 | 332 | 169 |
| 57 | Diabetes, Type II | 0 | 4211 | 138 |
| 58 | Treatment of acute psychotic disorders | 0 | 958 | 169 |
| 59 | Treatment of bipolar disorder | 0 | 10,362 | 523 |
| 60 | Treatment of schizophrenia | 0 | 13,413 | 2363 |
| 61 | Hypertension | 44 | 1338 | 846 |
| 62 | Zinc (diarrhoea treatment) | 244 | 1788 | 7455 |
| 63 | ORS | 147 | 937 | 8662 |
| 64 | Condoms | 482 | 22,883 | 8031 |
| 65 | ART for men | 1005 | 21,159 | 332 |
| 66 | ART for women | 1541 | 32,440 | 509 |
| 67 | Paediatric ART | 1556 | 7657 | 107 |
Input parameters used for the Appendix 4 investigations. For reference, the values marked in bold represent the parameter value used in Section 4
| Investigation | Input parameter (symbol) | Country data-set | Set of investigated input parameter values | Units |
|---|---|---|---|---|
| Case (i) | CER threshold required for funding | UK | £k | |
| Malawi | ||||
| Case (ii) | CER threshold required for funding | UK | £k | |
| Malawi | ||||
| Budget limit for funding interventions | UK | £Mx103 | ||
| Malawi | ||||
| Case (iii) | Percentage of high-value interventions assessed using the threshold rule | Both | % | |
| Case (iv) | Target percentage of interventions assessed by the PSI in the final year of phased increases | Both | % | |
| Total number of years of phased increases to the PSI capability | Both | Years |