Cost-effectiveness analysis is becoming an increasingly important tool for decision making in the health systems. Cost-Effectiveness of Medical Treatments formulates the cost-effectiveness analysis as a statistical decision problem, identifies the sources of uncertainty of the problem, and gives an overview of the frequentist and Bayesian statistical approaches for decision making. Basic notions on decision theory such as space of decisions, space of nature, utility function of a decision and optimal decisions, are explained in detail using easy to read mathematics.
- Focuses on cost-effectiveness analysis as a statistical decision problem and applies the well-established optimal statistical decision methodology.
- Discusses utility functions for cost-effectiveness analysis.
- Enlarges the class of models typically used in cost-effectiveness analysis with the incorporation of linear models to account for covariates of the patients. This permits the formulation of the group (or subgroup) theory.
- Provides Bayesian procedures to account for model uncertainty in variable selection for linear models and in clustering for models for heterogeneous data. Model uncertainty in cost-effectiveness analysis has not been considered in the literature.
- Illustrates examples with real data.
- In order to facilitate the practical implementation of real datasets, provides the codes in Mathematica for the proposed methodology.
The motivation for the book is to make the achievements in cost-effectiveness analysis accessible to health providers, who need to make optimal decisions, to the practitioners and to the students of health sciences.
Elías Moreno is Professor of Statistics and Operational Research at the University of Granada, Spain, Corresponding Member of the Royal Academy of Sciences of Spain, and elect member of ISI.
Francisco José Vázquez-Polo is Professor of Mathematics and Bayesian Methods at the University of Las Palmas de Gran Canaria, and Head of the Department of Quantitative Methods.
Miguel Ángel Negrín is Senior Lecturer in the Department of Quantitative Methods at the ULPGC. His main research topics are Bayesian methods applied to Health Economics, economic evaluation and cost-effectiveness analysis, meta-analysis and equity in the provision of healthcare services.
Introduction. Economic evaluation in health economics and cost-effectiveness. The cost-effectiveness analysis as a decision problem. Frequentist and Bayesian cost-effectiveness analysis. Subgroups analysis. Cost-effectiveness analysis for heterogeneous data. Codes. References.
"I strongly recommended this book for readers who are interested in the topic of cost-effectiveness analysis of medical treatments through the advantages of Bayesian framework over frequentist approaches... This book would be a great place for readers to start learning or expanding what they have known about the topic of economic evaluation for medical treatments."
Min-Hua Jen, Eli Lilli USA, Royal Statistical Society, Series A Statistics in Society, July 2021