Pharmacoeconomic Analysis of Drug Therapy

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Pharmacoeconomics has become a topic of great interest throughout the world. It broadens the analysis of drug products beyond safety and efficacy issues and evaluates the costs and consequences (outcomes) of drug products. It goes beyond focusing primarily on drug product acquisition cost and evaluates the total costs and benefits to the health care system. The four types of pharmacoeconomic analysis are cost-minimization, cost-effectiveness, cost-utility, and cost-benefit. These four methodologies differ in their measurement of the costs (inputs) and outcomes (outputs) of drug therapy. These methodologies are useful in determining the highest quality of care for the money spent. Pharmacists, physicians, hospitals, insurance companies, pharmaceutical manufacturing companies, and governments are interested in pharmacoeconomic analysis in order to provide efficient outcomes and cost-effective assessments. Direct costs describe health care resources used in providing a product or service. Indirect costs describe the loss of human productivity that may be seen from lost work because of illness or its treatment. Intangible costs describe costs such as pain or quality of life issues. The study perspective (viewpoint) significantly determines how costs and benefits are evaluated, such as governments, hospitals, insurance providers, or patients. Sensitivity analysis is important to determine the effect and extent of analysis uncertainties. Common pharmacoeconomics uses and a description of methodologies are reviewed.
1995-04-10

Pharmacoeconomic Analysis of Drug Therapy

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