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Estimating a cost-effectiveness threshold for the Spanish NHS.

Laura Vallejo-Torres1,2,3, Borja García-Lorenzo1,4, Pedro Serrano-Aguilar1,3,5

  • 1Canary Islands Health Research Foundation (FUNCANIS), Tenerife, Canary Islands, Spain.

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Area of Science:

  • Health Economics
  • Public Health Policy

Background:

  • Estimating the cost per quality-adjusted life year (QALY) is crucial for healthcare funding decisions.
  • The cost-effectiveness threshold informs resource allocation in health services.
  • The Spanish National Health Service (SNHS) requires accurate QALY cost data.

Purpose of the Study:

  • To estimate the cost per QALY in the Spanish National Health Service.
  • To provide evidence for setting an appropriate cost-effectiveness threshold in Spain.
  • To analyze the impact of health expenditure on population health outcomes.

Main Methods:

  • Utilized variation across 17 regional health services in Spain.
  • Employed fixed effect models and an instrumental variable approach.
  • Analyzed 5 years of data, incorporating exogenous changes in expenditure due to the economic crisis.

Main Results:

  • Health expenditure positively and significantly impacts population health.
  • An average spending elasticity of 0.07 was observed.
  • The estimated cost per QALY ranges from 22,000€ to 25,000€.

Conclusions:

  • The calculated cost per QALY is below the commonly cited threshold of 30,000€ in Spain.
  • Findings suggest that current health expenditure levels are cost-effective.
  • The study provides valuable data for informing SNHS funding and policy decisions.