Decision-Analytical Modelling in Health-Care Economic Evaluations

European Journal of Health Economics, Vol. 9, No. 4, pp. 313-323, 2007

11 Pages Posted: 23 May 2009

See all articles by Xin Sun

Xin Sun

affiliation not provided to SSRN

Thomas Alured Faunce

Australian National University

Date Written: September 12, 2007

Abstract

Decision-analytical modelling is widely used in health-care economic evaluations, especially in situations where evaluators lack clinical trial data, and in circumstances where such evaluations factor into reimbursement pricing decisions. This paper aims to improve the understanding and use of modelling techniques in this context, with particular emphasis on Markov modelling. We provide an overview, in this paper, of the principles and methodological details of decision-analytical modelling. We propose a common route for practicing modelling that accommodates any type of decision-analytical modelling techniques. We use the treatment of chronic hepatitis B as an example to indicate the process of development, presentation and analysis of the Markov model, and discuss the strengths, weaknesses and pitfalls of different approaches. Trial-based cost-effectiveness evaluation is becoming increasingly emphasised as a prioritised precondition (after safety, quality and efficacy evaluation) for central government drug reimbursement.

Keywords: Cost-effectiveness, economic modelling. pharmaceutical regulation, drug reimbursement

Suggested Citation

Sun, Xin and Faunce, Thomas Alured, Decision-Analytical Modelling in Health-Care Economic Evaluations (September 12, 2007). European Journal of Health Economics, Vol. 9, No. 4, pp. 313-323, 2007. Available at SSRN: https://ssrn.com/abstract=1408882

Xin Sun

affiliation not provided to SSRN

Thomas Alured Faunce (Contact Author)

Australian National University ( email )

Canberra, Australian Capital Territory 0200
Australia
61 2 61253563 (Phone)

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