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Laboratory Medicine Grand Rounds. Health Technology Assessment for developers Janet Bouttell 15 November 2017. Health Economics and Health Technology Assessment (HEHTA). What I am going to talk about Who HEHTA are What health economics is NICE style health economics vs what we are doing
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Laboratory Medicine Grand Rounds Health Technology Assessment for developers Janet Bouttell 15 November 2017 Health Economics and Health Technology Assessment (HEHTA)
What I am going to talk about • Who HEHTA are • What health economics is • NICE style health economics • vs what we are doing • Health economics and precision medicine • Current projects Health Economics and Health Technology Assessment (HEHTA)
Who we are and where we come from Health Economics and Health Technology Assessment (HEHTA)
What is economics? Health Economics and Health Technology Assessment (HEHTA)
What is health economics? Child Mental Health services Health budget Cancer drugs Health Economics and Health Technology Assessment (HEHTA)
1 Health profile with intervention Quality of life scale (0-1) Quality adjusted life years gained Health profile without intervention 0 8 Time (Years)
Steps in the economic analysis • Define the ‘status quo’ in terms of expected cost and expected health outcomes (QALYs) • Specify how intervention could lead to different health outcomes (extension or improvement in QoL) • Translate clinical utility into QALY gains • Balance costs to give the expected value of the intervention • Incremental Cost Effectiveness Ratio (ICER) = cost/QALY gain
The QALY • Visual Analogue scale • EQ5D3L/5L – EuroQol 5 dimensions, 3/5 levels (mobility, self-care, usual activities, pain/discomfort and anxiety/depression) - patients • Discrete Choice Experiments and Time Trade Off used to ‘value’ each health state – general population
NICE-style health economics? • Review some/all new medicines – value for money • NICE multiple technology appraisals compare existing drugs in one category (often as part of guideline development) • Mandatory/advisory • Devices (including diagnostics) different pathway but same idea Health Economics and Health Technology Assessment (HEHTA)
The cost-effectiveness plane COST EFFECTIVENESS Health Economics and Health Technology Assessment (HEHTA)
The cost-effectiveness plane COST EFFECTIVENESS Cheaper and more effective – no brainer! Health Economics and Health Technology Assessment (HEHTA)
The cost-effectiveness plane COST More expensive and less effective – no way! EFFECTIVENESS Health Economics and Health Technology Assessment (HEHTA)
The cost-effectiveness plane COST EFFECTIVENESS Cheaper and less effective – interesting! Health Economics and Health Technology Assessment (HEHTA)
The cost-effectiveness plane COST More expensive and more effective – most usual EFFECTIVENESS Health Economics and Health Technology Assessment (HEHTA)
The cost-effectiveness plane COST ICER for Drug B Threshold value for ICER EFFECTIVENESS Health Economics and Health Technology Assessment (HEHTA)
NICE-style health economics (AKA HTA) Health Economics and Health Technology Assessment (HEHTA)
NICE-style health economics (AKA HTA) Source of model diagrams – Buisman et al. Arthritis Research & Therapy (2016) 18:135 DOI 10.1186/s13075-016-1020-3 Health Economics and Health Technology Assessment (HEHTA)
Probabilistic sensitivity analysis Threshold of £20,000 - £30,000 per QALY Source of model diagram – adapted from Advanced Decision Analytic Modelling Course Materials - HEHTA Health Economics and Health Technology Assessment (HEHTA)
Some major controversies in NICE style health technology assessment • The amount of the threshold • End of life/orphan disease provisions • The QALY – is it sensitive enough? • The QALY – does it capture all aspects of value? • The QALY - should it distinguish between ages/working status?
But NICE style health economics (or Health Technology Assessment) not really appropriate for us here because….. Health Economics and Health Technology Assessment (HEHTA)
Steps for economic assessment in early stage of development process Health Economics and Health Technology Assessment (HEHTA)
Value Wheel for biomarker-based tests Drugomics Drugomics
Drugs don’t work in patients who don’t take them. — C. Everett Koop, M.D.[1]
Drugomics - Stage 1 of the early HTA framework: Understand disease and treatment pathway: • Chronic treatment for asymptomatic disease • Associated with high levels of non-adherence • Worse health outcomes and increased resource use
Drugomics - Stage 2 of the early HTA framework: Define the decision problem: • What is the value of a routine test of drug adherence in hypertension? • How would we demonstrate the value of the test? • Should we invest in development of the test?
Drugomics Early HTA value added – from qualitative discussion • Focus at on what the value proposition is and be able to communicate it in a simple way • Identification of potential barriers/evidence requirements at an early stage • Can identify disease context factors which will add value – e.g. treatment escalation
Value Wheel for biomarker-based tests Drugomics ORBIT
Stage 3 – qualitative causal value model Prescribe Ritux and increase responders
Stage 3 – qualitative causal value model Save cost by not treating non- responders
Stage 3 – qualitative causal value model Save cost by giving cheaper treatment
Stage 4 – develop quantitative model Base case – no testing Test for TNFi response only Test for Ritux response only
Other discussions/projects • Extension of KRAS/NRAS/BRAF testing in colorectal cancer • Potential for hormonal treatment of ovarian cancer (‘what if’ analysis) • Potential value of panel in Chronic Myeloid Leukemia • Potential health economics input to trial of pancreatic cancer panel • Cardiochip – point of care test for the simultaneous measurement of cardiac biomakers
References 1) Health Economics 2017:1-16, 23-06-2017 Valuing health‐related quality of life: An EQ‐5D‐5L value set for England Devlin N, Shah K, Feng Y, Mulhern B, van Hout B. 2) 1] Adherence to Medication Lars Osterberg, M.D., and Terrence Blaschke, M.D. n engl j med 353;5 www.nejm.org august 4, 2005