Economic evaluation
MSc module SS4.022
2002/3
Lecturer / Room / Phone / e-mail / Office hoursNancy Devlin / A557 / 020 7040 8518 / / Tues 2-5 p.m
LecturesTerm 1, Friday, 12.30 – 3 p.m.
Lecture slides available from
Aims
The aim of this module is to provide you with a basic knowledge and understanding of the techniques of economic appraisal and to introduce you to methodological issues encountered in economic evaluation. The module provides the foundation for the more detailed treatment of methods and advanced topics covered in later modules.
Learning outcomes
On successfully completing this module, you will be able to:
1. Demonstrate an understanding and knowledge of the economic techniques used to assess the costs and benefits of health care services and technologies, and the methodological issues associated with these.
2. Understand and interpret economic evaluation reports and studies.
3. State an economic evaluation research question, and identify the main steps involved in undertaking an economic evaluation to address it.
Resources to get you started
The following books provide an excellent, easy-to-read introduction to economic evaluation. Reading these in the first week of the module will provide you with a good overview of the field of economic evaluation – and the topics which we will be covering in a more advanced, detailed manner each week.
Kobelt, G. (2002) Health Economics: an introduction to economic evaluation. London: Office for Health Economics.
Kielhorn, A., von der Schulenberg, J.M. (2000) The health economics handbook. Adis International.
Assessment
This module is assessed by one piece of coursework, worth 20% of your final mark on this module, and by a three-hour final examination in January, worth 80% of your final mark.
Coursework
You can choose to do either an assignment on the topics covered in Part 1 of the module, due on November 11th, or an assignment on the topics covered in Part 2 of the module, due on Monday 9th December.
Two opportunities to complete coursework have been provided to give you some flexibility in fitting coursework around your other commitments.
The purpose of the coursework is to provide you with feedback on your understanding of key concepts covered by the module. Set assignment topics will be provided, but you are also welcome to ‘tailor’ the coursework to your own particular requirements and interests by (a) electing a question from the ‘study questions’ provided in each week’s handout, or (b) devising a question, from the topics covered, of particular relevance to you. If you select your own assignment question, you must get it approved by me before you commence work on it. This is both so I can check it is feasible and appropriate, and to guide you on any resources you may require to complete it successfully.
Week-by-week guide to module topics
The following table shows the schedule of topics, assessment and key readings for this module. You should attempt the key readings before coming to the sessions. A separate handout for each session will provide details of further readings and suggested study and revision questions.
Full reference details for the key texts referred to below:
Drummond, M.F., O’Brien, B., Stoddart, G.L, Torrance, G.W. (1997) Methods for the economic evaluation of health care programmes. Oxford: Oxford University Press. (library shelfmark: 338.473621 DRU)
Gold, M.R., Siegel, J.E., Russell, L.B., Weinstein, M.C. (1996) Cost effectiveness in health and medicine. New York: Oxford University Press. (library shelfmark: 338.433621 GOL)
Session/date / Topic / Key readingPart 1. Using economic evaluation in health care
1. 11th October / Introduction to economic evaluation / Getzen, T. (1997) Maximisation: finding the optimum pp. 28-35 in: Health Economics: fundamentals and flows of funds. Wiley. (copies provided in class)See also ‘Resources to get you started’.
2. 18th October / The theoretical foundations of economic evaluation / Gold et al. (1996) Ch. 2: Theoretical foundations of cost effectiveness analysis.
McGuire et al (1988) Ch.5: The cost benefit approach in theory.
3. 25th October / Economic evaluation: key concepts and definitions / Drummond et al (1997) Ch.2: Basic types of economic evaluation.
4. 1st November / Equity / Drummond et al (1997) Section 3.2. Limitations of economic evaluation techniques.
5. 8th November / Using economic evaluation in decision making
Guest lecturer:
Dr. Alastair Fischer, National Institute of Clinical Excellence.
“NICE’s use of economic evidence: challenges and issues” / Drummond et al (1997) Ch.9. Presentation and use of economic evaluation results.
Gold et al. (1996) Ch.1 Cost effectiveness analysis as a guide to resource allocation: roles and limitations.
Coursework No.1 due Monday 11th November
Week-by-week guide to module topics (continued)
Part 2. Issues in conducting an economic evaluation
Session/date / Topic / Key reading6. 15th November / Measuring and valuing outcomes / Drummond et al (1997)
Ch.5 Cost effectiveness analysis; Ch.6 Cost utility analysis; Ch.7 Cost benefit analysis.
7. 22nd November / Costs / Drummond et al (1997) Ch.4. Cost analysis.
8. 29th November / Discounting / Drummond et al (1997) section 4.2: Allowance for the differential timing of costs.
Gold et al. (1996) Ch.7. Time preference.
9. 6th December / Sensitivity analysis / Drummond et al (1997) Section 5.1.6. What are the main points to consider when undertaking a sensitivity analysis?
Gold et al. (1996) Ch.8. Reflecting uncertainty in cost effectiveness analysis.
Coursework No.2 due Monday 9thDecember
10. 13th December / Advances in economic evaluation / To be advisedFinal exam January 2003
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