Limitations of Traditional Health Technology Assessment Methods and Implications for the Evaluation of Innovative Therapies

Abstract

Traditional health technology assessment (HTA) draws upon a data modeling and evidence synthesis framework to arrive at conclusions about the clinical efficacy, safety, cost-effectiveness, and budget impact of treatments. HTA is used to guide policymakers in making regulatory, funding, and/or access decisions. The use of such formal approaches has many advantages. However, recent changes in drug technology and development, growth in the use of biologics, and other advances in treatment raise new issues with current HTA methods/value frameworks and their implementation. In this paper, we provide guidance for addressing these emerging challenges to strengthen assessments of innovative therapies/technologies and discuss how modifications to HTA methods can improve the concordance between policy decisions and societal preferences for the distribution of health benefits. Many of the points we bring up cannot be handled with better data, but require fundamental changes to the studies that inform HTAs.

Keywords: innovation, health technology assessment, valuation, cost effectiveness

JEL Classification: I10