Discounting Health Outcomes in Economic Evaluation- The Ongoing Debate
Jul 1, 2004, 00:00 AM
10.1111/j.1524-4733.2004.74002.x
https://www.valueinhealthjournal.com/article/S1098-3015(10)60199-4/fulltext
Section Title :
Section Order :
13
First Page :
Discounting is a mathematical procedure for adjusting future costs and outcomes of health- care interventions to “present value”; essentially this means adjusting for differences in the timing of costs (expenditure) compared to health benefits (outcomes). Calculations for discounting are straightforward: for each year (n) in the future the value of costs or benefits is multiplied by (1/(1+D)n) where D is the discount rate [1]. Higher discount rates or longer delays produce lower net present value. A constant discount rate produces values that decline exponentially with time.
https://www.valueinhealthjournal.com/action/showCitFormats?pii=S1098-3015(10)60199-4&doi=10.1111/j.1524-4733.2004.74002.x
HEOR Topics :
- Cost-comparison, Effectiveness, Utility, Benefit Analysis
- Economic Evaluation