The Official News & Technical Journal Of The International Society For Pharmacoeconomics And Outcomes Research
PRESIDENT’S MESSAGE

Reflections on the Quality of the QALY…
Diana Brixner PhD, 2007-2008 ISPOR President and Associate Professor and Chair of the Department of Pharmacotherapy and Executive Director of the Pharmacotherapy Outcomes Research Center at the University of Utah College of Pharmacy, Salt Lake City, UT, USA


Recently, I had the privilege of attending the ISPOR Invitational Workshop on Moving the QALY Forward held in Philadelphia, Pennsylvania USA, November 7-8, 2007. The intent of the program was to develop a thought-leader-driven research agenda concerning the quality-adjusted life-year. In the presence of those who have originated and refined the concept of quality-oflife as an outcome measure and those who have debated its relevance and use in decision making I attended as an observer, someone who has been in the arena of conducting outcomes research but would not consider myself either a methodologist in the principles of the QALY nor a direct decision maker. With these qualifiers at hand, I made the following observations.

First and foremost is the humble recognition of the depth and breadth of economic theory that has gone into the development of the QALY as a measure of patient preference for various states of health. Competing technologies may be assessed for their ability to either delay or prevent transition to a less advantageous health state in the progression of disease. Typically the manufacturer of a technology, with demonstrated evidence through clinical or observational studies of such a benefit, will charge a higher price for the product. Those in the field of technology assessment will review the evidence and determine a dollar value from the perspective of the decision or policy maker on the incremental benefit of a prolonged existence in a more desirable health state and thus a cost per QALY is determined. Although relatively straight forward in principle there are challenges in the pragmatic application of the QALY in the decision making process. The first such issue arises when one looks “under the hood” of how the QALY is determined. Again, thanks to the numerous qualified researchers in the field, the dynamics of patient choice in good health vs. disease and in selfinterest vs. those of an unrelated group may differ and various techniques and tools in the measurement of the QALY have arisen to address these concerns. This has left the technology developers with good intent of including QALYs as a clinical trail measure for a technology in a quandary as to which instruments to pick to best reflect the benefit of their product. Current options for a general instrument alone include the QOL Shortterm 36 or 12 or 6, the HUI1 or HUI2, VAS and the EQ5D to measure the determinants of quality of life before and after exposure to a treatment. The value of the different states can be determined by a standard gamble, time trade off, or various other methods. The financial impact of measuring QALY in a clinical trial cannot be avoided. There is the cost of incorporating any one tool into the clinical trial protocol, where the addition of one measure can add up to a million dollars to the budget. In addition there is the opportunity cost related to increase in time to collect and analyze the QALY results which may delay approval in major markets and postpone sales. Therefore the complexity of QALY analysis, resulting in various tools to customize the approach, can be a barrier in moving the field forward.

A second observation is in the application of QALY information to decision making. Around the world there are demonstrations of where the information is being used proactively and examples where the definition of QALY is still not clear. In the UK, a country with a single payer health system and a clear societal perspective in technology assessment, the QALY seems particularly well utilized in decision making. This has been demonstrated by the health economist experts that participate on the National Institute for Clinical Excellence review board for the National Health Service. The cost and benefit of a technology is summarized in a cost per QALY and standards have been set to create a threshold (generally £30,000 per QALY) of what is acceptable to society. On the other hand we have significant issue in the United State in understanding and implementing the QALY. Due to a fractured health care system, the payers often have different perspectives in making health care decisions, and these perspectives may or may not include the concept of quality of life. For many payers the QALY has not yet been accepted as an outcome measure, i.e. a measure of utility in a cost-utility analysis in the same way one considers a change in blood pressure, A1C or LDLs as an effectiveness measure in a cost-effectiveness analysis. The connection of a benefit in QALY to the long term benefit in disease outcomes has largely not been made for most US payers. There are pockets of change from the perspective of the employer, where a connection between the QALY and employee productivity is clearer, and perhaps in the integrated health care system where all costs are accounted for. This would appear to be highly relevant to a single payer such as Medicare; however the drug benefit for the elderly is delivered through the fragmented private payer.

In conclusion, I applaud the initiative to bring researchers, decision makers, and observers together to contribute to an ongoing dialogue of how to resolve current barriers to the acceptance of the QALY as a measure of patient benefit, the assignment of a cost to that benefit, and the application of this evidence to improved decisions in the future.

For further details on this ISPOR invitational (funded by a grant from US Agency for Health Care Research and Quality) workshop, see: http://www.ispor.org/meetings/MeetingsInvited.aspx.

For QALY issues, see: https://www.ispor.org/news/articles/Oct07/WTQ.asp.


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