Cost effectiveness thresholds: the past, the present and the future

Praveen Thokala; Jessica Marie Ochalek; Ashley Leech; Thaison Tong

doi:10.1007/s40273-017-0606-1

Cost effectiveness thresholds: the past, the present and the future

Praveen Thokala, Jessica Marie Ochalek, Ashley Leech, Thaison Tong

Centre for Health Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Cost-effectiveness (CE) thresholds are being discussed more frequently and there have been many new developments in this area; however, there is a lack of understanding about what thresholds mean and their implications. This paper provides an overview of the CE threshold literature. First, the meaning of a CE threshold and the key assumptions involved (perfect divisibility, marginal increments in budget, etc.) are highlighted using a hypothetical example, and the use of historic/heuristic estimates of the threshold is noted along with their limitations. Recent endeavours to estimate the empirical value of the thresholds, both from the supply side and the demand side, are then presented. The impact on CE thresholds of future directions for the field, such as thresholds across sectors and the incorporation of multiple criteria beyond quality-adjusted life-years as a measure of ‘value’, are highlighted. Finally, a number of common issues and misconceptions associated with CE thresholds are addressed.

Original language	English
Number of pages	14
Journal	PharmacoEconomics
DOIs	https://doi.org/10.1007/s40273-017-0606-1
Publication status	Published - 9 Feb 2018

Bibliographical note

© Springer International Publishing AG, part of Springer Nature 2018. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for details

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Cite this

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