Exploring Economic Evaluation Methods in Healthcare

A plethora of evaluation methods have been used to examine the economic return of eHealth investments in the literature. These methods offer different ways of determining the 'value for money' associated with a given eHealth system that are often based on specific assumptions and needs. However, this diversity has created some ambiguity with respect to when and how one should choose among these methods, ways to maintain the rigour of the process and its reporting, while ensuring relevance of the findings to the organization and stakeholders involved.

Introduction

Economic evidence is increasingly being used for informing health policies. However, the underlying principles of health economic analyses are not always fully understood. In this blog post, we will delve into the main types of economic evaluations used for informing priority setting and resource allocation in healthcare. We will explore their key features, uses, and limitations.

Determining Costs, Outcomes, and Importance

When conducting economic evaluations, it is crucial to identify and measure the costs and outcomes associated with a particular healthcare intervention. This information helps decision-makers understand the economic implications and potential benefits of implementing the intervention. Different methods can be used to determine costs and outcomes, such as identification, measurement, and valuation.

Identification of Costs and Outcomes

One of the first steps in economic evaluation is identifying the relevant costs and outcomes. This involves understanding the resources used and the effects of the intervention. For example, in the context of eHealth systems, costs may include expenses related to the development, implementation, and maintenance of the system. Outcomes, on the other hand, may include improvements in health outcomes, patient satisfaction, or cost savings.

Measurement of Costs and Outcomes

After identifying the costs and outcomes, the next step is to measure them accurately. This requires collecting data on resource use and outcomes. Various methods can be used for data collection, including surveys, interviews, and electronic health records. The data collected should be reliable and representative of the population under study.

Valuation of Costs and Outcomes

Once the costs and outcomes have been measured, they need to be assigned a monetary value. Valuation allows for the comparison of different costs and outcomes in monetary terms. There are different approaches to valuation, such as market prices, willingness-to-pay, and cost-effectiveness ratios. The choice of valuation method depends on the context and objectives of the evaluation.

Best Practice Guidance

To ensure the rigour of the economic evaluation process and its reporting, it is important to follow best practice guidance. This includes using standardized tools and methodologies, such as checklists and guidelines. For example, the CHEC List and CHEERS Checklist provide guidance on conducting and reporting economic evaluations in healthcare. These tools help ensure transparency and consistency in the evaluation process.

Exemplary Cases

There have been several exemplary cases of economic evaluations in healthcare. These cases demonstrate the application of economic evaluation methods in different healthcare settings and interventions. For example, a cost-benefit analysis of electronic medical records (EMR) in primary care showed significant cost savings and improved patient outcomes. Another study evaluated the cost-effectiveness of medication ordering and administration in reducing adverse drug events. These cases highlight the importance of economic evaluation in informing decision-making.

Implications

The findings of economic evaluations have important implications for healthcare organizations and stakeholders. They provide valuable insights into the economic viability and value for money of healthcare interventions. Decision-makers can use this information to allocate resources effectively and prioritize interventions based on their economic impact. Economic evaluations also help healthcare organizations understand the potential benefits and risks associated with different interventions.

Summary

Economic evaluation methods play a crucial role in informing priority setting and resource allocation in healthcare. They help decision-makers understand the economic implications and value for money associated with different healthcare interventions. By identifying, measuring, and valuing costs and outcomes, economic evaluations provide valuable insights into the economic viability and impact of healthcare interventions. Following best practice guidance and considering exemplary cases can ensure the rigour and relevance of economic evaluation findings. By incorporating economic evaluation methods into decision-making processes, healthcare organizations can make informed choices that optimize resources and improve patient outcomes.