COST EFFECTIVENESS ANALYSIS (CEA) balance

DEFINITION CEA

✅ A type of economic evaluation used in healthcare at any stage of a programme or an intervention

✅ Compares the relative cost and outcome (effect) of different course of action

Can be expressed as Cost associate with Healthcare(C) / Health outcome(E) CEA_Formula

FUNCTIONS

  1. Can provide a method of proritizing the allocation of resources of the enviroment / health resource
  1. Conducted with interventions that impacted the same health outcome. for example, we can compare two programs designed to prevent obesity :

✅ Nutrition images (1)

✅ Physical Activity physical activity

PROBLEMS problems

  1. more challenging when conducting on healthcare healthcare
  1. can only be favourable to

a. Data availability data

b. Drugs drugs

C. Methodological issues methodology

  1. Statistical techniques must be used to produce measure of effectiveness STATISTICAL

EXPLANATIONS

  1. CEA outcome can be defined narrowly or broadly

Narrowly : For those that are intermediate in nature and easier to capture. Example : when hendling hypertention intervention

Broad: For those that are more final removed such as :

Disease prevented ❌

Lives saved ✅

Years of life gained ↗

Physical activity ⏫

Decrease in blood pressure ⏬

  1. used for dealing with multiple health outcome or to conduct a cost utility analysis in a form of health index Diagram

If the net cost are ➕, the result are cost-effectiveness ratio

If the net cost are ➖, the resut are net cost saving

  1. A tool that helps to decide which interventon offers the best value for money and should be made available

OTHER EXAMPLES OF CEA

Average Cost-Effectiveness Ratio (ACER)

Evaluate average cost per health outcome for a single programme

Margical Cost-Effective Ratio (MCER)

Evaluate a specific change in cost or health outcome from one additional unit

Incremental Cost-Effective Ratio (ICER)

Evaluate the additional cost for additional outcome between different programmes with the same resource

It tells whether the cost increase or decrease as interventinional programs changes

Use to allocate resources between independent programmes

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Health oucome are measured in either

QALYS ➕

DALYS ➖

✅ 1 year of healthy health

✅ Measurement of health that gain

❌ 1 lost year of healthy life

❌ Measurement of overall disease burden

✅ years of Life x Utility Value = #QALYs

❌ Years lived with Disability (YLD) + Years of Life Lost (YLL) = #DALY

CREATED BY

MUHAMMAD ZAHIN ATHIR BIN ABD GHANI (A159048)

SHARNIAH A/P MURTY (A160130)

AHMAD FAEZ BIN MOHAMED RIDHWAN (A161484)