The Use of Probabilistic Decision Models in Technology Assessment: The Case of Total Hip Replacement

Andrew Briggs, Mark Sculpher, Jill Dawson, Ray Fitzpatrick, David Murray and Henrik Malchau
Additional contact information
Andrew Briggs: Health Economics Research Centre, Department of Public Health, University of Oxford, Old Road Campus, Headington, Oxford, UK
Mark Sculpher: Centre for Health Economics, University of York, Heslington, York, UK
Jill Dawson: School of Health and Social Care, Oxford Brookes University, Oxford, UK
Ray Fitzpatrick: Department of Public Health, University of Oxford, Old Road Campus, Headington, Oxford, UK
David Murray: Nuffield Orthopaedic Centre, Headington, Oxford, UK
Henrik Malchau: Department of Orthopaedics, Massachusetts General Hospital, Boston, USA

Applied Health Economics and Health Policy, 2004, vol. 3, issue 2, pages 79-89

Abstract: There is increasing recognition that decision modelling is central to health technology assessment and, in particular, to analyses to support formal decision making regarding the funding of the use of new technologies. In part, the key role of decision analysis stems from the need to handle multiple sources of uncertainty in the available evidence. The use of probabilistic decision analysis is a means of reflecting the parameter uncertainty in models and presenting this in a comprehensible manner to decision makers. In this article, we demonstrate the potential role of probabilistic models using the case study of total hip replacement surgery. A cost-effectiveness model was constructed to compare the Charnley and Spectron hip prostheses in terms of lifetime costs and quality-adjusted life-years (QALYs). Revision rates were estimated from the Swedish National Total Hip Arthroplasty Register (1992-2000); the risk of revision with the Spectron prosthesis relative to the Charnley prosthesis was 0.67 (95% confidence interval [CI] 0.32, 1.02) for early revisions and 0.26 (95% CI 0.07, 0.46) for late revisions. This lower revision risk resulted in the Spectron generating more QALYs than the Charnley prosthesis. Based on mean costs and QALYs, the Spectron results in cost savings in younger patients, and generates incremental cost-effectiveness ratios of between Lstg 1000 and Lstg 16 This article looks at the application of probabilistic decision modelling using total hip replacement as a case study to emphasis the need for decision models to quantify all sources of parameter uncertainty and to clearly distinguish parameter uncertainty from subgroup heterogeneity.

Keywords: Cost-utility; Economic-implications; Hip-fracture; Hip-surgery; Modelling; Sensitivity-analysis (search for similar items in EconPapers)
JEL-codes: C D I Z I1 I19 I18 I11 (search for similar items in EconPapers)
Date: 2004
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