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Informing a cost-effectiveness threshold for Saudi Arabia.

Ahmed Hamdan Al-Jedai1,2, James Lomas3, Hajer Yousef Almudaiheem1

  • 1Therapeutic Affairs, Ministry of Health Saudi Arabia, Riyadh, Saudi Arabia.

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Saudi Arabia

Keywords:
Cost-effectiveness thresholdH5H51II1I10I18cost-effectiveness analysisdecision makinghealth technology assessment

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Area of Science:

  • Health Economics
  • Health Technology Assessment
  • Public Health Policy

Background:

  • Saudi Arabia's Vision 2030 initiative aims to reform the Kingdom's healthcare system.
  • Health Technology Assessment (HTA) is being adopted to enhance resource efficiency in healthcare.
  • Understanding opportunity costs is crucial for effective reimbursement decisions and setting cost-effectiveness thresholds.

Purpose of the Study:

  • To estimate the opportunity costs of healthcare reimbursement decisions in Saudi Arabia.
  • To inform the development of a cost-effectiveness threshold for the Saudi Arabian healthcare system.
  • To provide a range of estimates for the marginal cost per unit of health gained.

Main Methods:

  • Utilized four distinct approaches to estimate the marginal cost per unit of health.
  • Drew upon cross-country evidence and UK-specific estimates.
  • Extrapolated UK data using income elasticity of the value of health.

Main Results:

  • Estimated a range of SAR 42,046 to SAR 215,120 per Quality-Adjusted Life Year (QALY) gained.
  • Central estimates suggest a range of SAR 50,000 to SAR 75,000 per QALY gained.
  • Findings align with international estimates in health economic literature.

Conclusions:

  • A cost-effectiveness threshold informed by health opportunity costs can guide decision-making.
  • Applying a threshold of SAR 50,000-75,000 per QALY ensures resource allocation considers opportunity costs.
  • Future research should focus on within-country studies for Saudi Arabia.