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Abstract/Syllabus:

Understanding Cost-Effectiveness Analysis in Health Care

Spring 2005

An adult hand touching the foot of a prematurely born infant
Cost analysis can help determine appropriate resources for
preventing premature births.

Course

Instructor

Kevin Frick

Offered By

Health Policy and Management

Description

The primary objective of this content is to prepare students to read and interpret cost-effectiveness studies. The students will first be introduced to basic economic concepts that are needed in order to understand the recommendations from the United States Panel on Cost Effectiveness in Health and Medicine. One example is the distinction between opportunity costs and budgetary costs. The recommendations will then be reviewed, particularly as they apply to what students should expect to read in cost-effectiveness research reports. Next, the relationship between cost-effectiveness results and other elements of the health care policy decision-making process will be discussed. More information will be provided on several aspects of how to conduct cost-effectiveness analyses. A critical discussion of several current articles demonstrating cost-effectiveness analyses will be an integral part of this course. When a student has completed this course, he or she will be able to read, comprehend, and perform a basic critique of cost-effectiveness papers and take part in discussions of planned cost-effectiveness research.

Syllabus

Course Description

The primary objective of this course is to prepare students to read and interpret cost-effectiveness studies. The students will first be introduced to basic economic concepts that are needed in order to understand the recommendations from the United States Panel on Cost Effectiveness in Health and Medicine. One example is the distinction between opportunity costs and budgetary costs. The recommendations will then be reviewed, particularly as they apply to what students should expect to read in cost-effectiveness research reports. Next, the relationship between cost-effectiveness results and other elements of the health care policy decision-making process will be discussed. More information will be provided on several aspects of how to conduct cost-effectiveness analyses. A critical discussion of several current articles demonstrating cost-effectiveness analyses will be an integral part of this course. When a student has completed this course, he or she will be able to read, comprehend, and perform a basic critique of cost-effectiveness papers and take part in discussions of planned cost-effectiveness research.

Course Objectives

By the end of the course, students should be able to do the following:

  • Read and interpret cost-effectiveness studies.

Prerequisites

You must successfully complete Introduction to Online Learning (550.002.81), offered by the Distance Education Division. For more information and to register, visit the Introduction to Online Learning course Web site.

There are no economic, budgeting, or accounting prerequisites.

Readings

Required Materials

  • Readings: Article readings are available via the Welch Medical Library E-Reserves System. Instructions on how to access course readings are provided on individual lecture pages.
  • Textbook: Prevention Effectiveness: A Guide to Decision Analysis and Economic Evaluation: Second Edition, by A.C. Haddix, S.M. Teutsch, P.S. Corso (editors).

You can buy the textbook from any online bookstore or through the Matthews Johns Hopkins Medical Book Center.

Matthews Johns Hopkins Medical Book Center
1830 East Monument Street
Baltimore, MD 21205 USA
410.955.3931
800.266.5725
410.955.0576 Fax
http://www.jhumedbooks.com/

Time Commitment

On average, students should expect to spend six hours per week on a two-unit course at the School of Public Health.

Course Topics

This course covers the following topics:

  • Economic concept overview
  • Recommendations of the Panel on Cost-Effectiveness in Health and Medicine
  • Decision rules
  • Quality adjusted life years
  • One year cost calculations
  • Multiple year cost calculations
  • Examples from readings

Course Format

Lectures: There will be eight lectures. Each lecture is approximately one hour long and is divided into three sections of approximately twenty minutes. Students will be expected to read materials relevant to each lecture before they view the online presentation.

Practical Exercises: There will be three exercises that will help students understand the basics of how costs and quality adjusted life years are calculated.

LiveTalk Sessions:
The instructor will lead six online LiveTalk sessions for the purpose of answering questions, reviewing exercises, discussing articles, and moderating the exchanges between students. There also will be an electronic bulletin board in which students may post any course-related messages.

Final Paper: At the end of the course, students will submit an essay (no longer than ten pages double-spaced) in which they demonstrate their mastery of the course material. Details are provided in the syllabus. There will be no examinations.

Grading Policy

Students will be expected to submit exercises and the final paper on time and to participate actively in the LiveTalk sessions and BBS discussions. Students taking this course for graduate academic credit will be evaluated based on three exercises and a final paper. Grades will be computed as follows:

  • Participation: 10%
  • Final paper: 60%
  • Practical exercises: 30%

The final letter grade will be based on the following point system:

  • A = 90-100
  • B = 80-89
  • C = 70-79
  • P = 70 + (For those taking the course pass/fail)
  • D = 60-69
  • F = < 59

    Schedule

    TOPIC ACTIVITIES
    Module 1: Core Concepts
    Economics Concepts Overview Lecture 1
    Solidifying Underlyinc Concepts LiveTalk 1
    Recommendations of the Panel on Cost-Effectiveness in Health and Medicine Lecture 2
    Solidifying Concepts from Recommendations LiveTalk 2
    Decision Rules Lecture 3
    Discussion of decision rules and how the rules apply to cancer treatment. LiveTalk 3
    Decision rules Exercise 1
    Module 2: Quality Adjusted Life Years
    Quality Adjusted Life Years Lecture 4
    Discussion of the concepts behind QALYs, implications of using QALYs, and how QALYs were calculated in the Discussion III piece. LiveTalk 4
    QALYs Exercise 2
    Module 3: Costs and Calculations
    Measuring Cost Over Time Lecture 5
    Multiple Year Cost Calculations Lecture 6
    Solidifying Cost Concepts LiveTalk 5
    Costs Exercise 3
    Module 4: Putting It All Together
    Putting It All Together (with examples from the readings). Lecture 7
    Any outstanding issues. LiveTalk 6
    Final Assignment Final assignment
    Course Evaluation Course Evaluation. Student input is a highly-valued source of information when doing course revisions. As such, please take a minute to fill out the end of course evaluation.



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