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Applying Cost-Effectiveness Concepts to the Community Health System

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  • A. H. Packer

    (Research Triangle Institute, Research Triangle Park, North Carolina)

Abstract

This paper investigates ways in which concepts of model building and cost-effectiveness can be applied to the health planning process. The problem is described and methodological implications drawn that recommend large-scale digital-computer simulation techniques. A study of effectiveness measures suggests that the system's basic purpose is to reduce the likelihood that individuals will be in a state of ill health. The proposed measure of ineffectiveness is defined as the expectation of the weighted sum of the population's expected duration of stay in each of m disability states. The applicability of this and other measures to specific health problems is also discussed. The paper deals with the problem of estimating costs. Distinctions are made among the various kinds of costs and among the various bearers of the costs.

Suggested Citation

  • A. H. Packer, 1968. "Applying Cost-Effectiveness Concepts to the Community Health System," Operations Research, INFORMS, vol. 16(2), pages 227-253, April.
    • Handle: RePEc:inm:oropre:v:16:y:1968:i:2:p:227-253
    DOI: 10.1287/opre.16.2.227
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    Cited by:

    1. Spencer, Anne & Rivero-Arias, Oliver & Wong, Ruth & Tsuchiya, Aki & Bleichrodt, Han & Edwards, Rhiannon Tudor & Norman, Richard & Lloyd, Andrew & Clarke, Philip, 2022. "The QALY at 50: One story many voices," Social Science & Medicine, Elsevier, vol. 296(C).
    2. Zanakis, Stelios H. & Mandakovic, Tomislav & Gupta, Sushil K. & Sahay, Sundeep & Hong, Sungwan, 1995. "A review of program evaluation and fund allocation methods within the service and government sectors," Socio-Economic Planning Sciences, Elsevier, vol. 29(1), pages 59-79, March.
    3. Jingyu Zhang & Brian T. Denton & Hari Balasubramanian & Nilay D. Shah & Brant A. Inman, 2012. "Optimization of Prostate Biopsy Referral Decisions," Manufacturing & Service Operations Management, INFORMS, vol. 14(4), pages 529-547, October.
    4. Yuejen Zhao & Rosalyn Malyon, 2009. "Life Years at Risk: A Population Health Measure from a Prevention Perspective," IJERPH, MDPI, vol. 6(9), pages 1-10, September.
    5. R.D. Peterson, 1986. "The Anatomy of Cost-Effectiveness Analysis," Evaluation Review, , vol. 10(1), pages 29-44, February.

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