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Biases in cost measurement for economic evaluation studies in health care

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  • Philip Jacobs
  • Jean‐François Baladi

Abstract

This paper addresses the issue of biases in cost measures which are used in economic evaluation studies. The basic measure of hospital costs which is used by most investigators is unit cost. Focusing on this measure, a set of criteria which the basic measures must fulfil in order to approximate the marginal cost (MC) of a service for the relevant product, in the representative site, was identified. Then four distinct biases—a scale bias, a case mix bias, a methods bias and a site selection bias—each of which reflects the divergence of the unit cost measure from the desired MC measure, were identified. Measures are proposed for several of these biases and it is suggested how they can be corrected.

Suggested Citation

  • Philip Jacobs & Jean‐François Baladi, 1996. "Biases in cost measurement for economic evaluation studies in health care," Health Economics, John Wiley & Sons, Ltd., vol. 5(6), pages 525-529, November.
    • Handle: RePEc:wly:hlthec:v:5:y:1996:i:6:p:525-529
    DOI: 10.1002/(SICI)1099-1050(199611)5:63.0.CO;2-E
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    References listed on IDEAS

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    1. D.N. Churchill & B.C. Lemon & G.W. Torrance, 1984. "A Cost-Effectiveness Analysis of Continuous Ambulatory Peritoneal Dialysis and Hospital Hemodialysis," Medical Decision Making, , vol. 4(4), pages 489-500, December.
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    Cited by:

    1. Richard Grieve & John Cairns & Simon G. Thompson, 2010. "Improving costing methods in multicentre economic evaluation: the use of multiple imputation for unit costs," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 939-954, August.
    2. Nazarov, Vladimir (Назаров, Владимир) & Davis, Christopher Mark (Дэвис, Кристофер Марк) & Gerry, Christopher J. (Гэрри, Кристофер Дж.) & Polyakova, Aleksandra (Полякова, Александра) & Sisigina, Natali, 2015. "Evaluating the Effectiveness and Efficiency of the Health System [Оценка Эффективности И Результативности Системы Здравоохранения]," Published Papers mn41, Russian Presidential Academy of National Economy and Public Administration.

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