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Using causal forests to assess heterogeneity in cost-effectiveness analysis.

Carl Bonander1, Mikael Svensson1

  • 1School of Public Health and Community Medicine, Institute of Medicine, University of Gothenburg, Gothenburg, Sweden.

Health Economics
|May 4, 2021
PubMed
Summary

This study introduces a data-driven method to analyze cost-effectiveness analysis (CEA) heterogeneity using causal forests. The approach estimates variations in outcomes and costs, aiding personalized healthcare decisions.

Keywords:
causal forestcost-effectiveness analysismachine learningstratified analysistreatment heterogeneity

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Area of Science:

  • Health Economics
  • Biostatistics
  • Machine Learning

Background:

  • Cost-effectiveness analysis (CEA) traditionally provides average treatment effects, potentially masking important patient subgroup variations.
  • Understanding heterogeneity in CEA is crucial for personalized medicine and optimizing resource allocation.
  • Existing methods for analyzing heterogeneity in individual-level data are limited.

Purpose of the Study:

  • To develop and validate a data-driven methodology for estimating and analyzing heterogeneity in CEA.
  • To provide tools for exploring variations in incremental outcomes, costs, and net monetary benefits across patient subgroups.
  • To enable the learning of data-driven optimal policy rules for treatment decisions.

Main Methods:

  • Utilized causal forests for estimating heterogeneous treatment effects on outcomes and costs.
  • Employed cross-fitted augmented inverse probability weighted learning for robust estimation.
  • Developed visualizations, including individual-level cost-effectiveness planes, for heterogeneity analysis.

Main Results:

  • Demonstrated the ability to estimate average cost-effectiveness in the overall sample and specific subpopulations.
  • Successfully explored and analyzed heterogeneity in incremental outcomes, costs, and net monetary benefits.
  • Showcased the identification of determinants of heterogeneity and the derivation of data-driven policy rules.

Conclusions:

  • The proposed data-driven method effectively estimates and analyzes heterogeneity in CEA using individual-level data.
  • Causal forests and related machine learning techniques offer powerful tools for personalized health economic evaluations.
  • This approach facilitates more nuanced decision-making in healthcare by accounting for patient-specific cost-effectiveness.