USE OF HEALTH ECONOMIC INFORMATION IN THE MANAGEMENT OF HEALTH CARE RESOURCE ALLOCATION
Author(s)
Maharajan M1, Rajiah K2, Sivanandy P2
1International Medical University Malaysia, Kuala Lumpur, Malaysia, 2International Medical University, Kuala Lumpur, Malaysia
The management of chronic diseases in Asia poses a heavy economic burden on the individuals as well as the society. As the essence of health care costs for chronic diseases is gradually increasing in Asian countries, the health resource allocation is becoming a hard decision to attain for the organization/government. At this period of time, patients’ willingness to pay has become an important field of policy attention. To get any health resource allocation, it is necessary to perform a cost-effective analysis and considering the disease burden. A cost-effective analysis estimates the incremental cost-effectiveness ratio (ICER) by comparing between the two interventions. In practice, many economic evaluations adopted 1 to 3 times of the specific country’s gross domestic product per capita as the willingness-to-pay (WTP) per quality-adjusted life-years (QALY) threshold. Some other popular approach used to determine the cost-effectiveness threshold is through the utilization of contingent valuation which could offer valuable data to policymakers on the magnitude of individuals’ preferences and may better reflect societal values. Though the co-payments by patients themselves reduces the extra demand produced by free-of-charge provision of health care, it imposes an excessive financial burden among people on low incomes and older people etc. The societal WTP for healthcare benefits have been considered to distribute healthcare resources. WTP/QALY ratios should be lesser than proposed thresholds to decide whether it is cost-effective or not.
Conference/Value in Health Info
2016-09, ISPOR Asia Pacific 2016, Singapore
Value in Health, Vol. 19, No. 7 (November 2016)
Code
PHP133
Topic
Health Policy & Regulatory
Disease
Multiple Diseases