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Use of Cost-Effectiveness Thresholds in Healthcare Public Policy: Progress and Challenges

Author

Listed:
  • Oscar Espinosa

    (Universidad Nacional de Colombia and Directorate of Analytical, Economic and Actuarial Studies in Health, Instituto de Evaluación Tecnológica en Salud (IETS))

  • Paul Rodríguez-Lesmes

    (Universidad del Rosario)

  • Giancarlo Romano

    (Instituto de Evaluación Tecnológica en Salud (IETS))

  • Esteban Orozco

    (Instituto de Evaluación Tecnológica en Salud (IETS)
    Universidad de Antioquia)

  • Sergio Basto

    (Instituto de Evaluación Tecnológica en Salud (IETS))

  • Diego Ávila

    (Universidad Nacional de Colombia and Directorate of Analytical, Economic and Actuarial Studies in Health, Instituto de Evaluación Tecnológica en Salud (IETS))

  • Lorena Mesa

    (Instituto de Evaluación Tecnológica en Salud (IETS))

  • Hernán Enríquez

    (Universidad del Rosario)

Abstract

The article offers a comparative analysis of the influence of cost-effectiveness thresholds in the decision-making processes in financing policies, coverage, and price regulation of health technologies in nine countries. We investigated whether countries used cost-effectiveness thresholds for public health policy decision making and found that few countries have adopted the cost-effectiveness threshold as an official criterion for financing, reimbursement, or pricing. However, in countries where it is applied, such as Thailand, the results have been very favorable in terms of minimizing health technology prices and ensuring the financial sustainability of the health system. Although the cost-effectiveness threshold has opportunities for improvement, particularly in certain institutional contexts and with adequate participation of the different strategic actors in the formulation of public policy, its potential use and added value are significant in various aspects.

Suggested Citation

  • Oscar Espinosa & Paul Rodríguez-Lesmes & Giancarlo Romano & Esteban Orozco & Sergio Basto & Diego Ávila & Lorena Mesa & Hernán Enríquez, 2024. "Use of Cost-Effectiveness Thresholds in Healthcare Public Policy: Progress and Challenges," Applied Health Economics and Health Policy, Springer, vol. 22(6), pages 797-804, November.
    • Handle: RePEc:spr:aphecp:v:22:y:2024:i:6:d:10.1007_s40258-024-00900-5
    DOI: 10.1007/s40258-024-00900-5
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    References listed on IDEAS

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    1. Stephen Martin & James Lomas & Karl Claxton & Francesco Longo, 2021. "How Effective is Marginal Healthcare Expenditure? New Evidence from England for 2003/04 to 2012/13," Applied Health Economics and Health Policy, Springer, vol. 19(6), pages 885-903, November.
    2. Linda Ryen & Mikael Svensson, 2015. "The Willingness to Pay for a Quality Adjusted Life Year: A Review of the Empirical Literature," Health Economics, John Wiley & Sons, Ltd., vol. 24(10), pages 1289-1301, October.
    3. Pieter van Baal & Meg Perry‐Duxbury & Pieter Bakx & Matthijs Versteegh & Eddy van Doorslaer & Werner Brouwer, 2019. "A cost‐effectiveness threshold based on the marginal returns of cardiovascular hospital spending," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 87-100, January.
    4. Niek Stadhouders & Xander Koolman & Christel van Dijk & Patrick Jeurissen & Eddy Adang, 2019. "The marginal benefits of healthcare spending in the Netherlands: Estimating cost‐effectiveness thresholds using a translog production function," Health Economics, John Wiley & Sons, Ltd., vol. 28(11), pages 1331-1344, November.
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