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Incidence versus prevalence modeling in pharmacoeconomics
Fadia T Shaya1, C Daniel Mullins, Winston Wong
1Center on Drugs and Public Policy, University of Maryland School of Pharmacy, 100 North Greene Street, 6th floor, Baltimore, MD 21201, USA. fshaya@rx.umaryland.edu
Expert Review of Pharmacoeconomics & Outcomes Research
|October 8, 2009
Summary
Pharmacoeconomics increasingly uses epidemiological measures like incidence and prevalence for cost prediction and decision-making. Choosing between prevalence-based and incidence-based costing depends on the study
Area of Science:
- Health Economics
- Epidemiology
- Decision Science
Background:
- Standardization in pharmacoeconomics necessitates robust epidemiological measures.
- Accurate incidence and prevalence estimates are crucial for predicting illness events and associated costs.
- These measures inform formulary decision-making and healthcare budget planning.
Purpose of the Study:
- To delineate the application and implications of epidemiological measures in pharmacoeconomics.
- To guide the selection of appropriate costing methods (prevalence-based vs. incidence-based) based on study objectives and disease characteristics.
- To highlight the relevance of these methods for budget impact analysis, cost control, and treatment decision-making.
Main Methods:
- Systematic review of pharmacoeconomic methodologies.
- Analysis of epidemiological measures, including incidence and prevalence estimation.
- Comparison of prevalence-based and incidence-based cost assignment approaches.
Main Results:
- Prevalence-based costing assigns costs to the year they occur, valuable for budget impact and chronic conditions.
- Incidence-based costing assigns costs to the year a disease starts, requiring data on disease course and survival.
- The choice of method impacts analyses for cost-effectiveness, budget impact, and treatment selection.
Conclusions:
- Epidemiological measures are integral to modern pharmacoeconomics.
- The selection between prevalence- and incidence-based costing is context-dependent.
- Appropriate application of these methods enhances the reliability of economic evaluations in healthcare.
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