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Economic evaluation under managed competition: evidence from the U.K

M Drummond¹, J Cooke, T Walley

¹Centre for Health Economics, University of York, Heslington, U.K.

Social Science & Medicine (1982)

|August 1, 1997

Summary

Economic evaluation in UK healthcare shows potential but faces barriers. Increased awareness and better interpretation of studies are needed for effective decision-making despite validity concerns.

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Area of Science:

Health economics
Health services research
Healthcare policy

Background:

The United Kingdom has a long history of economic evaluation in healthcare.
The introduction of the internal market in the UK healthcare system prompted an examination of economic evaluation's impact on decision-making.
Managed competition is a growing global trend, making the UK a relevant case study for healthcare reforms and economic evaluation.

Purpose of the Study:

To discuss the potential for using economic evaluation in UK healthcare decision-making.
To assess the actual impact of economic evaluation on healthcare decisions in the UK.
To explore the reasons behind the impact or lack thereof of economic evaluation results.

Main Methods:

Case studies on heart transplantation and pharmaceutical use in labor management.
Presentation of new survey data from potential users of economic evaluations.
Analysis of barriers to the adoption and utilization of economic evaluation findings.

Main Results:

UK healthcare reforms have enhanced the potential for economic evaluation use.
Decision-makers require greater awareness and understanding of economic studies.
Barriers include concerns about study validity, multiple organizational objectives, and resource allocation challenges.

Conclusions:

Despite increased potential, significant barriers hinder the effective use of economic evaluations in UK healthcare.
Addressing decision-makers' awareness, interpretation skills, and resource allocation issues is crucial.
Overcoming validity concerns and balancing efficiency with other objectives are key to maximizing the impact of economic evaluation.