Return to PJ Online Home Page The Pharmaceutical Journal Vol 266 No 7133 p162-163
February 3, 2001

Forum

International Society for Pharmacoeconomics and Outcomes Research

Pharmacoeconomics and health care decision making

The ISPOR held its third European conference on “The evolving role of pharmacoeconomic evaluations in health care decisions” in Antwerp, Belgium, from November 5 to 7, 2000. Sonia Sanghani reports

European diversity and future challenges
Role of the EMEA
Comparison of advisory bodies
Developing clinical guidelines
No slogans in public health
Time horizons and discounting
Using league tables

The International Society for Pharmacoeconomics and Outcomes Research (ISPOR) is a non-profit making organisation promoting the scientific discipline of pharmacoeconomics and health outcomes research. It can be contacted at ISPOR, Building 3, Suite D, 3100 Princeton Pike, Lawrenceville, New Jersey 08648, United States (tel 00 1 609 219 0773, website www.ispor.org).


Opening the conference, Mr JON CLOUSE (president, ISPOR) said that the aim of the meeting was to bridge the gap between those performing pharmacoeconomic evaluation and those using it for decision making. The availability of more efficacious and expensive treatments required rational decision making. Pharmacoeconomics and outcomes research were tools to assist and support that.

European diversity and future challenges

Mr KEES de JONCHEERE (regional adviser, World Health Organisation) compared the diverse health care systems and differing expenditure on pharmaceuticals across Europe. Expenditure on health and drugs was rising and policy makers across Europe faced the dilemmas of limited drug budgets, increasing consumer demand, irrational prescribing, uncertainty about treatment outcomes, and large variations in clinical practice as well as the underuse of effective new treatments and continued use of ineffective treatments.

A key issue for public health in the future was the continued entry of new products without an apparent link between drug development and health needs. In 1998, in Germany, 35 new substances had been licensed, of which 12 were new, nine were improvements and 14 were “me-toos”. There was a need to encourage real innovation but there was currently no definition of “real”.

Mr De Joncheere asked: “Is pharmacoeconomic and health economic evaluation a necessary element in rational decision making or the fourth hurdle which delays the entry of valuable treatment options?”

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Role of the EMEA

Mr NOEL WATHION (head of regulatory affairs and pharmacovigilance, European Medicines Evaluation Agency) said that quality, safety and efficacy were of the utmost importance when granting marketing approval for new pharmaceutical products. European regulators performed risk/benefit assessments before granting authorisations, but with limited data. Although marketing authorisations could be granted at European level, each member state still had the power to set prices, and to assess whether products fitted within their current health, social and economic systems. This could lead to delays in marketing some therapeutic advances in member states.

Identifying medicines which represented significant added therapeutic value was important for promoting innovation. Drug expenditure needed to be assessed to ensure the rational use of medicines, and databases with industry-independent information for health care professionals and the public needed to be developed, he said.

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Comparison of advisory bodies

Mr MARC SPRENGER (director of a Dutch health insurance board) described a national advisory body set up in the Netherlands to provide independent advice to the Dutch ministry of health. The Dutch health minister intended to use pharmacoeconomic evaluation in health care decision making. Of four drugs mentioned by Mr Sprenger, the minister had followed the advice given for all but one of them - sildenafil (Viagra) - which she had refused to reimburse even for specific patient groups. Key issues for the advisory body were transparency, validity, confidentiality and orphan drugs, where there was limited funding to perform pharmacoeconomic studies. The advisory body identified not only direct costs, both inside and outside health care, but also indirect costs.

Professor MARTIN BUXTON (a member of the National Institute for Clinical Excellence appraisal board) said the NICE made recommendations and issued guidelines based on multiple criteria, not just cost-effectiveness. The NICE did not take a broad societal perspective into account in its appraisals; it looked only at the clinical and social services impact.

Costs and benefits were discounted at rates set by the Treasury of 6 per cent and 1.5 per cent, respectively. Due to limited data, some amount of computer modelling was inevitable. The NICE’s areas of investigation covered pharmaceuticals, medical devices, diagnostic and screening devices, surgical procedures and health promotion. In its first year most of its work had focused on pharmaceuticals and medical devices. The problem faced by the NICE was one of weak quality clinical data, Professor Buxton said. Clinical trials were short-term, focused and conducted in a small selection of adults. In reality, drug use was usually long-term chronic use in a broader section of the population. Useful quality-of-life data to support evaluation were lacking and models were needed to extend beyond the trial period with increased transparency.

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Developing clinical guidelines

Mr ULF PERSSON (of the Swedish institute for health economics) spoke about the use of pharmacoeconomic evaluations in developing clinical guidelines. Before 1997, the Swedish government had limited the number of products in use. Since then it had been establishing local lists and guidelines to ensure reliable and rational drug use locally, such as thiazides or beta-blockers as the drugs of choice in hypertension and inhaled steroids in asthma. Nine out of 10 general medical practitioners were reported to be following the recommendations of local guidelines.

Various pharmacoeconomic analyses had been used in developing the guidelines. Cost of illness and cost minimisation were used most often, cost effectiveness sometimes and cost-utility and cost-benefit hardly ever. The costs used were total economic costs, including cost of permanent disability, short term illness, etc. The criteria felt to be important were therapeutics, safety and reliability, and economic assessment. Equity between patient groups was not an important consideration. Pharmacoeconomics could aid prioritisation and enable doctors to maintain a certain amount of freedom in prescribing within the guidelines.

Mr ROBERT JANKNEGT (clinical pharmacologist, the Netherlands) demonstrated a computer program (SOJA) which promoted rational drug decision making. Although most physicians claimed to use rational criteria when evaluating drugs, such decisions were often based on other factors, such as emotional factors and hidden or unconscious criteria. In order to increase transparency, an interactive computer program had been developed. Each criterion was given a weighting by the user and prices could be changed to reflect local prices. Once the parameters were entered, drugs were arranged in a preference list or graph. Sections for antibiotics, antidepressants, antiemetics, Helicobacter pylori eradication, inhaled corticosteroids, reflux oesophagitis and statins had been developed. Others were under development.

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No slogans in public health

According to Mr FRANK VANDENBROUCKE (Belgian minister of social affairs), “the last thing needed is slogans, such as ‘costs and incentives’”. Cost containment was neither an ideal nor an evil. Incentives could be a powerful tool for achieving efficiencies but they also had drawbacks. The fundamental problem was how to reduce inefficiencies and wasteful behaviour. In Belgium, discussions were taking place with the pharmaceutical industry regarding drug budgets. If prescribing of a drug overshot the budget then the industry had to reimburse its share of the excess overspend. The problem lay in how to set the budget. There was a limited amount of information available. Information holders would either charge for the information or the government would have to set up its own costly monitoring system. This situation could not easily be altered. Those with an advantageous position would like to maintain it.

He also emphasised that innovation had to be intelligent innovation, not just innovation for its own sake. Evidence-based medicine was the key concept for improving quality in clinical practice. An important requirement for future decision making was evidence-based pharmacoeconomics.

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Time horizons and discounting

Mr LORNE BASSKIN (Butler university, United States) spoke about issues surrounding the choice of time frame for cost-effectiveness evaluation. Bias could result from choosing the wrong time frame, such as research conducted over a short time frame from which benefits were proposed in the long term. One example of this was with Zyban (amfebutamone) where, after six months, fewer people were smoking but, after 12 months, many had gone back to smoking. This caused a mismatch in costs and benefits since costs were incurred at the present rate with possible benefits in the future. Also, when developing drugs for chronic conditions, results were stated for the short term only, such as with statins. If a drug was only useful in the short term then using it long-term could result in poor patient compliance which confounded the cost-effectiveness calculations. Licensing for short-term use did not prevent off-label use in practice. Use of Alphagan (brimonidine) for four weeks had been shown to decrease intraoccular pressure. In practice, use for up to eight weeks showed an increase in intraoccular pressure. Therefore, choosing the relevant time frame depended on the disease state, ie, acute or chronic illness.

A frequent mistake when modelling costs was non-inclusion of medication costs. If discounting principles were used then these needed to be stated and the time frame disclosed. Most important was to perform a sensitivity analysis.

Dr MAARTEN POSTMA (the Netherlands) demonstrated how discounting or not discounting gave totally different answers when performing cost-effectiveness evaluations. He recommended discounting at the economic rate of the country at the time of performing the analysis and to remember that future economic states could change.

Two paradoxes highlighted by the speakers were those defined by Keeler and Cretin (if outcomes were not discounted, it was always more cost-effective to put off treatment ad infinitum) and Hay (if you did not discount future generations, each individual alive today with a positive probability of offspring carried an infinite expected life value).

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Using league tables

Dr FRANS RUTTEN (Erasmus university, the Netherlands) reminded participants that cost-effectiveness could be based on incremental or generalised costs so the decision maker needed to know what the cost-effectiveness ratio was representing. Costs and effects were uncertain and it was not possible to stay within a fixed budget with certainty as decision makers were not normally risk neutral.

Dr JOSEPHINE MAUSKOPF (Research Triangle institute, US) said that league tables could be used either to benchmark and then allocate budgets, or to start with the smallest drug costs first and grade up until the budget was spent. The problem with this method was that when a new drug came, one had to start again as most drug budgets were fixed. The problem with using the benchmark valuation method was that the value was not usually just one value, it depended on the disease state being treated.

The impact of uncertainty was important. It was possible to attach confidence intervals to cost-effectiveness ratios, and doing this could blur some of the boundaries between similar drugs. Population size was also important as the budget impact would vary with the size of the affected population, even if different interventions had the same cost burden. If the total cost impact was affected, then so was the total quality of life. So the question was, did one invest in a high cost, high quality of life option where health gains were high but fewer people were treated or a low cost, low quality option where more of the population could be treated but the health gains were small?

The timing of costs and benefits was important. One method was to put the pharmacoeconomic results in perspective by changing costs with time. Quality adjusted life years (QALYs) should also show a change over time. Dividing costs by QALYs and benchmarking for the disease state of interest, considering the affected population and using these figures to arrive at the total costs and total timing allowed decision makers to look at the efficiencies of treatment options and make choices.

Dr WARREN SCHONFELD (San Francisco, US) stated that the kinds of league tables being discussed served two purposes, one of which was to aid researchers investigating new technologies to assess their relative positions within the league table.

One of the major problems of league tables was the consideration of subgroups within a population. When considering kidney or heart transplants versus cholesterol testing, there were wide variations in the severity of transplant patients even though the population group was small. Were the groups comparable? If not, on what could the decision maker base a decision? Should people with severe conditions be treated first? Usually, within a population group, disease severity was mixed and cost-effectiveness ratios for treatments would vary widely.

Most published articles were negative about the use of league tables in decision making. For football they were fine but for QALY information problems lay in the interpretation of data. This did not prevent the use of league tables everywhere in health care, such as the recent WHO league table comparing European health care systems.

When speakers were asked if they were for or against the use of league tables, Dr MAUSKOPF said: “We should think of a league table as a concept to compare the cost or utility of a treatment against a benchmark treatment. Therefore you do not need the whole table, just the benchmark value to which you add the previously described methodology.”

Dr SCHONFELD suggested that league tables were not the answer but, in a general sense, they were invaluable.

Mr MICHAEL DRUMMOND (Medtap, University of York) felt that the question was not whether league tables should be used but rather how to best present information so that people could make a decision. Different ways of presenting information led to different decisions being made. He emphasised that in some countries, such as the United Kingdom, decision making was at a local or primary care group level so training in the use of league tables and understanding the presentation of information was necessary.

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