Valuing the Societal Impact of Medicines and Other Health Technologies: A User Guide to Current Best Practices

Shafrin Jason (), Kim Jaehong, Cohen Joshua T., Garrison Louis P., Goldman Dana A., Doshi Jalpa A., Krieger Joshua, Darius Lakdawalla, Neumann Peter J., Phelps Charles E., Whittington Melanie D. and Willke Richard
Additional contact information
Shafrin Jason: Mann School of Pharmacy and Pharmaceutical Sciences, University of Southern California, Los Angeles, CA, USA
Kim Jaehong: Center for Healthcare Economics and Policy, FTI Consulting, Los Angeles, CA, USA
Cohen Joshua T.: Center for the Evaluation of Value and Risk in Health, Tufts Medical Center, Boston, MA, USA
Garrison Louis P.: The Comparative Health Outcomes, Policy, and Economics (CHOICE) Institute, University of Washington, Seattle, WA, USA
Goldman Dana A.: Schaeffer Center for Health Policy & Economics, University of Southern California, Los Angeles, CA, USA
Doshi Jalpa A.: Division of General Internal Medicine, University of Pennsylvania, Philadelphia, PA, USA
Krieger Joshua: Harvard Business School, Harvard University, Boston, MA, USA
Neumann Peter J.: Center for the Evaluation of Value and Risk in Health, Tufts Medical Center, Boston, MA, USA
Phelps Charles E.: Economics, Public Health Sciences, University of Rochester, Rochester, NY, USA
Whittington Melanie D.: Center for the Evaluation of Value and Risk in Health, Tufts Medical Center, Boston, MA, USA
Willke Richard: Scintegral Health Economics, Lawrenceville, NJ, USA

Forum for Health Economics & Policy, 2024, vol. 27, issue 1, 29-116

Abstract: This study argues that value assessment conducted from a societal perspective should rely on the Generalized Cost-Effectiveness Analysis (GCEA) framework proposed herein. Recently developed value assessment inventories – such as the Second Panel on Cost-Effectiveness’s “impact inventory” and International Society of Pharmacoeconomics Outcomes Research (ISPOR) “value flower” – aimed to more comprehensively capture the benefits and costs of new health technologies from a societal perspective. Nevertheless, application of broader value elements in practice has been limited in part because quantifying these elements can be complex, but also because there have been numerous methodological advances since these value inventories have been released (e.g. generalized and risk-adjusted cost effectiveness). To facilitate estimation of treatment value from a societal perspective, this paper provides an updated value inventory – called the GCEA value flower – and a user guide for implementing GCEA for health economics researchers and practitioners. GCEA considers 15 broader value elements across four categories: (i) uncertainty, (ii) dynamics, (iii) beneficiary, and (iv) additional value components. The uncertainty category incorporates patient risk preferences into value assessment. The dynamics category petals account for the evolution of real-world treatment value (e.g. option value) and includes drug pricing trends (e.g. future genericization). The beneficiary category accounts for the fact health technologies can benefit others (e.g. caregivers) and also that society may care to whom health benefits accrue (e.g. equity). Finally, GCEA incorporates additional broader sources of value (e.g. community spillovers, productivity losses). This GCEA user guide aims to facilitate both the estimation of each of these value elements and the incorporation of these values into health technology assessment when conducted from a societal perspective.

Keywords: generalized cost-effectiveness analysis; health technology assessment; cost-effectiveness analysis; value assessment (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1515/fhep-2024-0014

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