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Health Economic Assessment: Cost-Effectiveness Thresholds and Other Decision Criteria

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  • Steven Simoens

    (Research Centre for Pharmaceutical Care and Pharmaco-economics, Faculty of Pharmaceutical Sciences, Katholieke Universiteit Leuven. Onderwijs en Navorsing 2, P.O. Box 521, Herestraat 49, 3000 Leuven, Belgium)

Abstract

An article published in this Journal argued that New Zealand does not apply a cost-effectiveness threshold because medicines are funded within a fixed budget and because cost-effectiveness is only one of nine criteria that inform decisions. This Comment has explained that, from a theoretical perspective, the cost-effectiveness threshold model is not inconsistent with these two arguments. The observed annual variation in incremental cost-effectiveness ratios in New Zealand may originate from yearly differences in new medicines that request reimbursement and in the budget size, and from the fact that decision makers take into account other decision criteria in addition to cost-effectiveness.

Suggested Citation

  • Steven Simoens, 2010. "Health Economic Assessment: Cost-Effectiveness Thresholds and Other Decision Criteria," IJERPH, MDPI, vol. 7(4), pages 1-6, April.
    • Handle: RePEc:gam:jijerp:v:7:y:2010:i:4:p:1835-1840:d:8005
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    References listed on IDEAS

    as
    1. Steven Simoens, 2009. "Health Economic Assessment: A Methodological Primer," IJERPH, MDPI, vol. 6(12), pages 1-17, November.
    2. Perleth, Matthias & Jakubowski, Elke & Busse, Reinhard, 2001. "What is `best practice' in health care? State of the art and perspectives in improving the effectiveness and efficiency of the European health care systems," Health Policy, Elsevier, vol. 56(3), pages 235-250, June.
    3. Weinstein, Milton & Zeckhauser, Richard, 1973. "Critical ratios and efficient allocation," Journal of Public Economics, Elsevier, vol. 2(2), pages 147-157, April.
    4. P. Sendi & A. Gafni & S. Birch, 2002. "Opportunity costs and uncertainty in the economic evaluation of health care interventions," Health Economics, John Wiley & Sons, Ltd., vol. 11(1), pages 23-31, January.
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