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Cost-Effectiveness and Heterogeneity: Using Finite Mixtures of Disease Activity Models to Identify and Analyze Phenotypes

Author

Listed:
  • Borg, Sixten

    (Health Economics Unit, Lund University)

  • Gerdtham, Ulf-G.

    (Department of Economics, Lund University)

  • Rydén, Tobias

    (Department of Information Technology, Uppsala University)

  • Munkholm, Pia

    (Department of Gastroenterology, North Zealand University Hospital)

  • Odes, Selwyn

    (Faculty of Health Sciences, Ben-Gurion University of the Negev)

  • Moum, Bjørn

    (University of Oslo, Institute of Clinical Medicine)

  • Stockbrügger, Reinhold

    (Department of Gastroenterology and Hepatology, University Hospital Maastricht)

  • Lindgren, Stefan

    (Department of Clinical Sciences Malmö, Lund University)

Abstract

Heterogeneity in patient populations is an important issue in health economic evaluations, as the cost-effectiveness of an intervention can vary between patient subgroups, and an intervention which is not cost-effective in the overall population may be cost-effective in particular subgroups. Identifying such subgroups is of interest in the allocation of healthcare resources. Our aim was to develop a method for cost-effectiveness analysis in heterogeneous chronic diseases, by identifying subgroups (phenotypes) directly relevant to the cost-effectiveness of an intervention, and by enabling cost-effectiveness analyses of the intervention in each of these phenotypes. We identified phenotypes based on healthcare resource utilization, using finite mixtures of underlying disease activity models: first, an explicit disease activity model, and secondly, a model of aggregated disease activity. They differed with regards to time-dependence, level of detail, and what interventions they could evaluate. We used them for cost-effectiveness analyses of two hypothetical interventions. Allowing for different phenotypes improved model fit, and was a key step towards dealing with heterogeneity. The cost-effectiveness of the interventions varied substantially between phenotypes. Using underlying disease activity models for identifying phenotypes as well as cost-effectiveness analysis appears both feasible and useful in that they guide the decision to introduce an intervention.

Suggested Citation

  • Borg, Sixten & Gerdtham, Ulf-G. & Rydén, Tobias & Munkholm, Pia & Odes, Selwyn & Moum, Bjørn & Stockbrügger, Reinhold & Lindgren, Stefan, 2015. "Cost-Effectiveness and Heterogeneity: Using Finite Mixtures of Disease Activity Models to Identify and Analyze Phenotypes," Working Papers 2015:5, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2015_005
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    More about this item

    Keywords

    Cost-effectiveness; Disease heterogeneity; Phenotypes; Latent classes; Disease activity model; Crohn's disease;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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