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A multi-criteria decision analysis perspective on the health economic evaluation of medical interventions

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  • Douwe Postmus
  • Tommi Tervonen
  • Gert Valkenhoef
  • Hans Hillege
  • Erik Buskens

Abstract

A standard practice in health economic evaluation is to monetize health effects by assuming a certain societal willingness-to-pay per unit of health gain. Although the resulting net monetary benefit (NMB) is easy to compute, the use of a single willingness-to-pay threshold assumes expressibility of the health effects on a single non-monetary scale. To relax this assumption, this article proves that the NMB framework is a special case of the more general stochastic multi-criteria acceptability analysis (SMAA) method. Specifically, as SMAA does not restrict the number of criteria to two and also does not require the marginal rates of substitution to be constant, there are problem instances for which the use of this more general method may result in a better understanding of the trade-offs underlying the reimbursement decision-making problem. This is illustrated by applying both methods in a case study related to infertility treatment. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Douwe Postmus & Tommi Tervonen & Gert Valkenhoef & Hans Hillege & Erik Buskens, 2014. "A multi-criteria decision analysis perspective on the health economic evaluation of medical interventions," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(7), pages 709-716, September.
    • Handle: RePEc:spr:eujhec:v:15:y:2014:i:7:p:709-716
    DOI: 10.1007/s10198-013-0517-9
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    References listed on IDEAS

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    Cited by:

    1. R. Pelissari & M. C. Oliveira & S. Ben Amor & A. Kandakoglu & A. L. Helleno, 2020. "SMAA methods and their applications: a literature review and future research directions," Annals of Operations Research, Springer, vol. 293(2), pages 433-493, October.
    2. Raffaele Lagravinese & Paolo Liberati & Giuliano Resce, 2020. "Measuring Health Inequality in US: A Composite Index Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 921-946, February.
    3. Mónica D. Oliveira & Inês Mataloto & Panos Kanavos, 2019. "Multi-criteria decision analysis for health technology assessment: addressing methodological challenges to improve the state of the art," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(6), pages 891-918, August.
    4. Angelis, Aris & Kanavos, Panos, 2017. "Multiple Criteria Decision Analysis (MCDA) for evaluating new medicines in Health Technology Assessment and beyond: The Advance Value Framework," Social Science & Medicine, Elsevier, vol. 188(C), pages 137-156.
    5. López-Bastida, J. & Ramos-Goñi, J.M. & Aranda-Reneo, I. & Trapero-Bertran, M. & Kanavos, P. & Rodriguez Martin, B., 2019. "Using a stated preference discrete choice experiment to assess societal value from the perspective of decision-makers in Europe. Does it work for rare diseases?," Health Policy, Elsevier, vol. 123(2), pages 152-158.
    6. Bana e Costa, Carlos A. & Oliveira, Mónica D. & Vieira, Ana C.L. & Freitas, Liliana & Rodrigues, Teresa C. & Bana e Costa, João & Freitas, Ângela & Santana, Paula, 2023. "Collaborative development of composite indices from qualitative value judgements: The EURO-HEALTHY Population Health Index model," European Journal of Operational Research, Elsevier, vol. 305(1), pages 475-492.

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    More about this item

    Keywords

    Health economic evaluation; Multi-criteria decision analysis; Infertility treatment; C44; I18;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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