PHCY 721 – Pharmacoeconomics
(Answered) 140 Questions and Correct
And Answers, 100% Verified.
2025/2026.
What is Health Economics?
Branch of economics concerned with evaluating the efficiency, effectiveness, value and behavior in
the production and consumption of health and health care.
What is "Pharmacoeconomics"?
The description and analysis of the costs and consequences of pharmaceuticals and pharmaceutical
services, and its impact on individuals, healthcare systems and society
- It's about determining alternatives that provide the best healthcare outcome per dollar spent
- It's NOT about determining the cheapest healthcare alternative
Pharmacoeconomics
Cost / benefit of drug
Health Economics
Cost / benefit of all treatment activities
Health Outcomes Research
Results of healthcare attributable to a specific intervention
Outcomes Research
Same as health outcomes research
Health Services Research
Older term, looks at all programs and systems of care
Evidence-Based Medicine
Use of peer review literature and clinical experience to optimize individual patient care
Economic Evaluation is a...
Tool that helps decision makers (in public & private sectors) determine how scarce healthcare
dollars should be spent
Economic Evaluation assists...
Healthcare decision makers in determining the value of medical interventions (treatments,
medications, devices, behavioral counseling, other treatments) or diagnostic tests.
,What is the "value" of healthcare intervention?
The ratio between its effectiveness (measured through relevant outcome measures) and cost
Pharmacoeconomics includes balancing...
the costs with the consequences (e.g., outcomes) of pharmaceutical services and therapies
(It is a specialty area of the broader field of Economic Analysis / Economic Evaluation)
Who are the end users of pharmacoeconomics and outcomes research?
Health Care Providers (pharmacists, physicians, health systems, clinics)
Health Plans (Managed Care Organization - MCO & Pharmacy Benefit Manager - PBM)
Government (US = FDA; UK = NICE)
Pharmaceutical Industry
Society
What is the basic task of Economic Evaluations?
To identify, measure, value and compare the costs and consequences of the alternatives being
considered.
Economic Assessments compare what...?
2 or more alternatives (New treatment vs. current practice)
- Both costs and consequences of the alternatives are examined
Cost-of-Illness Analysis involves...
Identifying costs of a particular disease or condition within a healthcare system or population
normally within a year
- Yields total cost of a disease (which can then be compared to the cost of implementing a
prevention/treatment strategy)
Cost-Minimization Analysis (CMA)
Compares costs of 2+ treatment - Assumed to have EQUIVALENT therapeutic outcome
Cost = $$$
Outcomes = EQUAL
(Not common in medical literature)
Cost-Benefit Analysis (CBA)
Compares costs & benefits of treatment alternatives or programs - Costs and benefits are converted
to monetary terms ($)
, Expressed as either a cost-to-benefit ratio or as net cost or benefit
Cost = $$$
Outcomes = $$$
Advantages for Cost-Benefit Analysis
Useful when deciding how to allocate scarce resources
(Determines if benefits of a program/intervention exceed costs of implementation & Compares
multiple programs/interventions with similar or unrelated outcomes)
Disadvantages of Cost-Benefit Analysis
- Not popular
- Difficult to quantify the value of benefits/health outcomes
- Even if principle benefits can be quantified, there may be criticism that not all benefits were
considered, OR that your chosen benefits were not the most relevant
Cost-Effectiveness Analysis (CEA)
Identifies and compares costs and outcomes of COMPETING INTERVENTIONS
- Differ in therapeutic outcome
Cost = $$$
Outcomes = Natural units
When is CEA used?
When intervention costs are easily measured in dollars, but outcomes are difficult to quantify if left
in natural units
Examples of natural or physical units?
Lives saved
Cases cured
Blood glucose
Advantages of CEA
Outcomes are easier to quantify vs. other PE methods
- Clinicians are familiar with measuring these health outcomes
Disadvantages of CEA
Interventions with different types of outcomes CANNOT be compared
- Subjective judgement to determine if added costs are with the additional outcome
Cost-Utility Analysis (CUA)
Compares treatment alternatives where costs are monetary and outcome is related to the utility of
the intervention
(Answered) 140 Questions and Correct
And Answers, 100% Verified.
2025/2026.
What is Health Economics?
Branch of economics concerned with evaluating the efficiency, effectiveness, value and behavior in
the production and consumption of health and health care.
What is "Pharmacoeconomics"?
The description and analysis of the costs and consequences of pharmaceuticals and pharmaceutical
services, and its impact on individuals, healthcare systems and society
- It's about determining alternatives that provide the best healthcare outcome per dollar spent
- It's NOT about determining the cheapest healthcare alternative
Pharmacoeconomics
Cost / benefit of drug
Health Economics
Cost / benefit of all treatment activities
Health Outcomes Research
Results of healthcare attributable to a specific intervention
Outcomes Research
Same as health outcomes research
Health Services Research
Older term, looks at all programs and systems of care
Evidence-Based Medicine
Use of peer review literature and clinical experience to optimize individual patient care
Economic Evaluation is a...
Tool that helps decision makers (in public & private sectors) determine how scarce healthcare
dollars should be spent
Economic Evaluation assists...
Healthcare decision makers in determining the value of medical interventions (treatments,
medications, devices, behavioral counseling, other treatments) or diagnostic tests.
,What is the "value" of healthcare intervention?
The ratio between its effectiveness (measured through relevant outcome measures) and cost
Pharmacoeconomics includes balancing...
the costs with the consequences (e.g., outcomes) of pharmaceutical services and therapies
(It is a specialty area of the broader field of Economic Analysis / Economic Evaluation)
Who are the end users of pharmacoeconomics and outcomes research?
Health Care Providers (pharmacists, physicians, health systems, clinics)
Health Plans (Managed Care Organization - MCO & Pharmacy Benefit Manager - PBM)
Government (US = FDA; UK = NICE)
Pharmaceutical Industry
Society
What is the basic task of Economic Evaluations?
To identify, measure, value and compare the costs and consequences of the alternatives being
considered.
Economic Assessments compare what...?
2 or more alternatives (New treatment vs. current practice)
- Both costs and consequences of the alternatives are examined
Cost-of-Illness Analysis involves...
Identifying costs of a particular disease or condition within a healthcare system or population
normally within a year
- Yields total cost of a disease (which can then be compared to the cost of implementing a
prevention/treatment strategy)
Cost-Minimization Analysis (CMA)
Compares costs of 2+ treatment - Assumed to have EQUIVALENT therapeutic outcome
Cost = $$$
Outcomes = EQUAL
(Not common in medical literature)
Cost-Benefit Analysis (CBA)
Compares costs & benefits of treatment alternatives or programs - Costs and benefits are converted
to monetary terms ($)
, Expressed as either a cost-to-benefit ratio or as net cost or benefit
Cost = $$$
Outcomes = $$$
Advantages for Cost-Benefit Analysis
Useful when deciding how to allocate scarce resources
(Determines if benefits of a program/intervention exceed costs of implementation & Compares
multiple programs/interventions with similar or unrelated outcomes)
Disadvantages of Cost-Benefit Analysis
- Not popular
- Difficult to quantify the value of benefits/health outcomes
- Even if principle benefits can be quantified, there may be criticism that not all benefits were
considered, OR that your chosen benefits were not the most relevant
Cost-Effectiveness Analysis (CEA)
Identifies and compares costs and outcomes of COMPETING INTERVENTIONS
- Differ in therapeutic outcome
Cost = $$$
Outcomes = Natural units
When is CEA used?
When intervention costs are easily measured in dollars, but outcomes are difficult to quantify if left
in natural units
Examples of natural or physical units?
Lives saved
Cases cured
Blood glucose
Advantages of CEA
Outcomes are easier to quantify vs. other PE methods
- Clinicians are familiar with measuring these health outcomes
Disadvantages of CEA
Interventions with different types of outcomes CANNOT be compared
- Subjective judgement to determine if added costs are with the additional outcome
Cost-Utility Analysis (CUA)
Compares treatment alternatives where costs are monetary and outcome is related to the utility of
the intervention
