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Economic Evaluation in Health

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Medicine and Health

Length 1500, not including the references list.
Assignments that are over the word limit (a margin of 10% of the word count is acceptable) will drop a grade.

Task description
1. What are the advantages of estimating a cost per QALY gained over a cost per natural unit (e.g. case) prevented? Why might an analyst calculate only a cost per case prevented rather than perform a cost-utility analysis? (10 marks, max length 400 words)
2. An economic evaluation of a new drug for your setting has been completed. It strictly followed the appropriate recommended guidelines by the decision makers. However, after careful assessment it is clear that the ICER per QALY gained is likely to be above the threshold considered to be cost-effective in your setting.

a.What are some potentially reasonable reasons (i.e. not related to political pressure or lobbying) why a decision maker may still want to consider funding this new drug? (10 marks, max length 400 words)

3. What is the difference between direct costs and indirect costs? Why may some decision makers choose not to allow the inclusion of productivity costs in evaluations of healthcare interventions? (10 marks, max length 400 words)
4. Applying a healthcare payer perspective (including all relevant healthcare care costs irrespective of who pays), you want to evaluate biennial immunochemical faecal occult blood test (iFOBT) screening for colorectal cancer in Australians aged over 50 years and compare this to current practice (‘no intervention’ in this example).a.What costs should be included in the analysis? (e.g. what costs might result from/be increased by the program? What costs might be prevented/reduced by the program?) (10 marks, max length 400 words)


There is no specific style required but it must be consistent and follow the general advice from the School. Please do not use footnotes. In terms of numbers of references, you should go beyond the references provided in key readings but I am not expecting over 20 references in total. The reference list does not count towards the word limit.

Learning outcomes assessed
•Relate the methods and concepts of economic evaluation to a health intervention
•Describe the concepts underpinning economic evaluation and its use in decision making
•Identify relevant costs and consequences and the methods used to value them

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