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Cost-effectiveness analysis: can we reduce variability in costing methods?

Taghreed Adam1, Marc A Koopmanschap, David B Evans

  • 1Child and Adolescent Health Department, World Health Organization, Geneva, Switzerland. adamt@who.int

International Journal of Technology Assessment in Health Care
|July 17, 2003
PubMed
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Variations in economic appraisal costing methods persist despite guidelines. Identifying sources of these differences is crucial for improving the validity and comparability of study results for policy-makers.

Area of Science:

  • Health Economics
  • Health Services Research
  • Methodology

Background:

  • Standardization of economic appraisal methods is needed for consistency.
  • Despite guidelines, applied studies show considerable diversity in costing methods.
  • This variability may impact the validity and comparability of study findings.

Purpose of the Study:

  • To explore sources of variation in costing methods within applied economic evaluations.
  • To discuss the nature of these variations and their potential for reduction.
  • To enhance the value of costing studies for policy-makers.

Main Methods:

  • Systematic identification of major sources of variation in costing methods.
  • Comparison of methods used in applied studies against existing guideline recommendations.

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Main Results:

  • Four primary sources of variation were identified.
  • Disagreement between guidelines, lack of detail in guidelines, unaddressed methodological issues, and non-compliance with guidelines.
  • These factors contribute to the diversity observed in applied economic evaluations.

Conclusions:

  • Variability in costing methods questions the validity and comparability of economic evaluation results.
  • Addressing these variations is essential for improving the transferability and generalizability of findings.
  • Minimizing variability will increase the utility of costing studies for policy decisions.