IMPACT OF TREATMENT DISCONTINUATION ON LONG-TERM COST-EFFECTIVENESS ESTIMATES IN HEALTH ECONOMIC MODELS
Author(s)
Parampal Bajaj, B.Tech1, Akanksha Sharma, MSc1, Kushagra Pandey, MA1, Sameer Mansoori, MSc2, Shubhram Pandey, MSc2;
1Heorlytics Pvt. Ltd, Mohali, India, 2Pharmacoevidence Pvt. Ltd., Mohali, India
1Heorlytics Pvt. Ltd, Mohali, India, 2Pharmacoevidence Pvt. Ltd., Mohali, India
OBJECTIVES: Health economic models often assume continuous treatment use over long time horizons; however, in real-world clinical practice, patients frequently discontinue treatment due to adverse events, lack of efficacy, or personal preference. Ignoring treatment discontinuation may bias long-term cost-effectiveness estimates. This study evaluated the impact of alternative treatment discontinuation methods on lifetime cost-effectiveness outcomes.
METHODS: A cohort-based Markov model with annual cycles and a lifetime horizon (40 years) was developed from a healthcare payer perspective. Two treatment strategies were compared: (1) continuous treatment until death and (2) treatment with an annual discontinuation risk and three health states included in the model were: on-treatment, post-discontinuation, and death. Treatment discontinuation was modelled as a constant annual hazard, assuming an exponential process over time. Annual discontinuation rates (15%), mortality risks, utilities, and costs were taken from the published literature. Post-discontinuation was associated with higher mortality and lower health-related quality of life. Costs and QALYs were discounted at 3% annually. Scenario analyses compared no discontinuation versus discontinuation, and one-way sensitivity analyses assessed the influence of discontinuation rates and post-discontinuation outcomes.
RESULTS: Assuming continuous treatment resulted in higher lifetime QALYs (12.3 vs. 8.2), and higher total costs ($230,722 vs. $92,490) compared with models incorporating treatment discontinuation. Accounting for treatment discontinuation reduced health benefits by one third and the resulting incremental cost-effectiveness ratio was approximately $33,700 per QALY gained, which was substantially higher than estimates assuming continuous treatment. Sensitivity analyses showed that higher discontinuation rates and poorer post-discontinuation health outcomes had the greatest impact on increasing ICERs.
CONCLUSIONS: Adding treatment discontinuation in health economic models can significantly affect cost-effectiveness estimates and post-discontinuation health outcomes leads to more conservative and realistic results. Economic models developing for HTA submissions should transparently justify discontinuation assumptions and explore alternative scenarios to support robust decision making.
METHODS: A cohort-based Markov model with annual cycles and a lifetime horizon (40 years) was developed from a healthcare payer perspective. Two treatment strategies were compared: (1) continuous treatment until death and (2) treatment with an annual discontinuation risk and three health states included in the model were: on-treatment, post-discontinuation, and death. Treatment discontinuation was modelled as a constant annual hazard, assuming an exponential process over time. Annual discontinuation rates (15%), mortality risks, utilities, and costs were taken from the published literature. Post-discontinuation was associated with higher mortality and lower health-related quality of life. Costs and QALYs were discounted at 3% annually. Scenario analyses compared no discontinuation versus discontinuation, and one-way sensitivity analyses assessed the influence of discontinuation rates and post-discontinuation outcomes.
RESULTS: Assuming continuous treatment resulted in higher lifetime QALYs (12.3 vs. 8.2), and higher total costs ($230,722 vs. $92,490) compared with models incorporating treatment discontinuation. Accounting for treatment discontinuation reduced health benefits by one third and the resulting incremental cost-effectiveness ratio was approximately $33,700 per QALY gained, which was substantially higher than estimates assuming continuous treatment. Sensitivity analyses showed that higher discontinuation rates and poorer post-discontinuation health outcomes had the greatest impact on increasing ICERs.
CONCLUSIONS: Adding treatment discontinuation in health economic models can significantly affect cost-effectiveness estimates and post-discontinuation health outcomes leads to more conservative and realistic results. Economic models developing for HTA submissions should transparently justify discontinuation assumptions and explore alternative scenarios to support robust decision making.
Conference/Value in Health Info
2026-05, ISPOR 2026, Philadelphia, PA, USA
Value in Health, Volume 29, Issue S6
Code
EE101
Topic
Economic Evaluation
Disease
No Additional Disease & Conditions/Specialized Treatment Areas