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Cost-effectiveness analysis using data from multinational trials: the use of bivariate hierarchical modeling
Andrea Manca1, Paul C Lambert, Mark Sculpher
1Centre for Health Economics, University of York, UK. am126@york.ac.uk
Standard health care cost-effectiveness analysis (CEA) overlooks country-specific differences. Bayesian hierarchical modeling provides more accurate overall and country-specific cost-effectiveness estimates from multinational trials.
Area of Science:
- Health Economics
- Biostatistics
- Clinical Trial Analysis
Background:
- Health care cost-effectiveness analysis (CEA) commonly utilizes individual patient data (IPD) from multinational randomized controlled trials.
- Existing CEA methods adequately address between-patient variability but neglect crucial between-location variability.
- Differences in healthcare resources, costs, clinical practices, and patient populations across countries can significantly impact CEA results.
Purpose of the Study:
- To advocate for and illustrate the application of Bayesian bivariate hierarchical modeling for analyzing multinational cost-effectiveness data.
- To demonstrate how this framework can yield more appropriate estimates of overall cost-effectiveness and associated uncertainty.
- To enable the derivation of country-specific cost-effectiveness estimates, accounting for between-location variability and controlling for patient- and country-specific factors.
Main Methods:
- Bayesian bivariate hierarchical modeling was employed to analyze multinational cost-effectiveness data.
- This approach explicitly models patient-level costs and outcomes nested within countries.
- The methodology was applied to real-life data from a multinational trial involving 17 countries.
Main Results:
- Standard CEA methods applied to multinational IPD showed significant variability across countries, potentially leading to misleading conclusions.
- The proposed Bayesian modeling approach produced more appropriate overall cost-effectiveness estimates and quantified sampling uncertainty effectively.
- "Shrinkage estimates" from the model facilitated appropriate quantification of country-specific cost-effectiveness, balancing information across countries.
Conclusions:
- Bayesian bivariate hierarchical modeling offers a robust framework for analyzing multinational cost-effectiveness data.
- This approach provides more accurate overall and country-specific cost-effectiveness estimates compared to standard methods.
- The methods presented offer a generalizable framework for analyzing economic data collected across diverse geographical locations.
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