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Pharmacoeconomics
1. A Seminar Submitted to
VIJAYA INSTITUTE OF PHARMACEUTICAL SCIENCES
FOR WOMEN
In Partial fulfillment of the requirement for the Award
of the Degree
BACHELOR OF PHARMACY
Under the guidance of: Submitted by:
Mrs. D. Santhi Krupa, M.Pharm., Mrs. E. Revathi Sree
Asst. Professor, 147N1R0029
Department of Pharmacology IV B. Pharmacy
* PHARMACOECONOMICS
2. INTRODUCTION
Pharmacoeconomics is a scientific discipline concerned with
the cost and value of drugs, often with the goal of optimizing
the allocation of health care resources.
It compare the cost of various drugs with the outcomes, such
as benefits of patients receiving the drugs and costs.
Over the last decade there has been tremendous interest in
economic evaluations of healthcare programmes, especially in
the pharmaceutical field.
continue
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3. Economic evaluations help decision makers determine
whether the cost of this extra effectiveness provided by the
new drug is worthwhile, within the budget available.
Millions of people suffer and die in absence of access or
inability to afford medical care, many others suffer because
they end up paying through borrowing debts and selling assets
etc.
INTRODUCTION
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4. NEED FOR PHARMACOECONOMICS
To find the optimal therapy at the lowest price.
To decrease the concern for patients, healthcare
professionals, and the public.
In Industry- To decide among specific research and
development alternatives.
In Government- To determine program benefits and prices
paid.
In Private Sector- To design insurance benefit coverage.
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5. CHALLENGES
The main challenges for pharmacoeconomics continue to be:
Establishing guidelines or standards of practice.
Creating a cadre of trained producers and consumers of
pharmacoeconomic work.
Continuing education on the relevant features of this
discipline for practitioners, government officials, private
sector executives.
Stable funding to support applied pharmacoeconomic
research.
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6. AIM AND OBJECTIVES OF
PHARMACOECONOMIC EVALUATION
To reduce monetary burden on the consumers by insuring
global pricing strategy for the effective management of
health care system and to make more efficient use of
limited resources for maximization of health care benefit at
lower cost (Sculpher et al., 2005).
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8. GUIDELINES
The perspective of the evaluation
Choice of comparative treatment/ indication
Analytical technique
Cost identification, measurement and evaluation
Assessing quality of life
Modelling
Incremental analysis
Discounting future effects and costs
Use of expert panel
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9. METHODS OF PHARMACOECONOMIC
EVALUATION
There are basically four types of Pharmacoeconomic
studies.
Cost-minimization analysis (CMA)
Cost-effectiveness analysis (CEA)
Cost-utility analysis (CUA)
Cost-benefit analysis (CBA)
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10. Cost-Minimization Analysis (CMA)
Cost-minimization Analysis is a tool used in
pharmacoeconomics and is applied when comparing multiple
drugs of equal efficacy and equal tolerability.
CMA shows only a “cost savings” of one program or
treatment over another.
Employing CMA is appropriate when comparing two or more
therapeutically equivalent agents or alternate dosing regimens
of the same agent (Tan et al., 2006).
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11. Cost Effective Analysis (CEA)
CEA is the most commonly applied form of economic
analysis in the literature, and especially in drug therapy.
CEA is a technique designed to assist a decision maker in
identifying a preferred choice among possible alternatives.
CEA evaluates multiple drug treatments for the same
condition.
The cost of the drug treatments are weighed against the
effectiveness of the drug .
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12. Cost Utility Analysis (CUA)
CUA is the most appropriate method to use when
comparing programs and treatment alternatives that are
life extending with serious side effects, those which
produce reductions in morbidity rather than mortality, and
when HRQOL is the most important health outcome being
examined
CUA can compare cost, quality, and the quantity of patient
years.
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13. Cost Benefit Analysis (CBA)
CBA is a basic tool that allows for the identification,
measurement and comparison of the benefits and costs of a
program or a treatment alternative.
CBA should be employed when comparing treatment
alternatives in which the costs and benefits do not occur
simultaneously.
CBA also can be used when comparing programs with
different objectives because all benefits are converted into
dollars and to evaluate a single program or compare multiple
programs. 13
14. LIMITATIONS OF
PHARMACOECONOMIC EVALUATIONS
Limitations of Pharmacoeconomic evaluation include
a) Sometimes choice of the drugs is given according to the
availability.
b) Drugs are prescribed under promotional pressurizing
activities of marketing executives of pharmaceutical firms.
c) For chronic diseases, bio-availability consideration can have
an upper hand over Pharmacoeconomics.
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15. STEPS TO OVERCOME LIMITATIONS
The state associations and hospitals should procure
medicine directly from the firm/ industry.
Sensitizing students of health sciences on
Pharmacoeconomics
Creating awareness of concepts and rules of
Pharmacoeconomics in existing physicians should also be
done.
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16. IMPORTANCE OF PHARMACOECONOMICS
To decrease health expenditures, whilst optimising
healthcare results
To choose the best among the numerous drug alternatives
To spent less on cost of healthcare products and services
Allocation of these resources
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17. BENEFITS OF PHARMACOECONOMICS
Making cost-effective choices when resources are limited.
To justify investment in a clinical service or program.
To justify reimbursement of a clinical service or program.
Inclusion or exclusion of new drugs.
Drug Policy decisions.
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18. PHARMACEUTICAL APPLICATIONS
To assist clinicians and practitioners in making more informed
and complete decisions regarding drug therapy.
In selecting the most cost effective drugs for an organizational
formulary.
For justifying the value of various healthcare services,
particularly pharmacy services.
It supports various clinical decisions, ranging from the level of
the patient to the level of an entire healthcare system.
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19. CONCLUSION
The principles and methods of pharmacoeconomics provide the
means to quantify the value of pharmacotherapy through
balancing costs and outcomes. By understanding the principles,
methods, and application of pharmacoeconomics, healthcare
professionals will be prepared to make better, more informed
decisions regarding the use of pharmaceutical products and
services.
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20. REFERENCES
Abarca J. Assessing Principles of Pharmacoeconomics. Int. J. Pharm. Tech.,
2005; 23(3):76-89.
Brinsmead R. Use of pharmacoeconomics in prescribing research. J Clin
Pharm Ther., 2009 28:339-46.
Bootman JL. Pharmacoeconomics and outcomes research. Am J Health Syst
Pharm., 1995; 52(3):16–19.
Eisenberg JM, Glick H, Koffer H. Pharmacoeconomics: Economic
evaluation of pharmaceuticals. Pharmacoepidemiology., 1989; 325-350.
Rawlins MD, Culyer AJ. National Institute for Clinical Excellence and its
value judgments. BMJ., 2004; 24:224- 7.
Moayyedi P, Mason J. Cost-Utility and Cost Benefit Analyses: How did we
get here and where are we going? European Journal of Gastroenterology
and Hepatology., 2004; 16(6):527-534.
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