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Cost Evaluation in Health Programs: Exploring Discrete Choice Experiments and Outcomes

This class discusses economic evaluation methodologies in health programs, emphasizing costing exercises and discrete choice experiments (DCE). Participants will explore a DCE designed to assess trade-offs between travel time and wait time for specialist appointments. The forthcoming study focuses on homeless individuals with severe mental illness, evaluating the impact of immediate scatter-site housing combined with assertive community treatment versus usual care over two years. Key aspects include the five steps in cost measurement, the importance of perspective, and calculating unit costs for healthcare visits.

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Cost Evaluation in Health Programs: Exploring Discrete Choice Experiments and Outcomes

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  1. Economic evaluation of health programmes Department of Epidemiology, Biostatistics and OccupationalHealth Class no. 14: More about costing Oct22, 2008

  2. Plan of class • Description of readingmaterials • Discretechoiceexperimentexercise • Costingexercises

  3. Example of a DCE • How would we construct a simple DCE to evaluate trade-offs among travel time and wait time for an appointment with a specialist?

  4. Forthcomingstudy (1) • Housing first: homelesswithsevere mental illnessrandomlyassigned to receiveeither: • Scatter-site housingimmediately+ Assertive communitytreatment, • Withhousing subsidies • Or usual care: Lesssystematiccommunity-based care, usuallysegregatedhousingobtainedaftersomedegree of stabilityachieved

  5. Forthcomingstudy (2) • N=200 • 2-yearfollow-up period • Funded by Mental Health Commission of Canada • (Suppose) Cost-consequenceanalysis, with 2 outcomes: • Dayshoused • Self-perceivedquality of life

  6. Five steps in costmeasurement • Choose a perspective • Identify relevant costs • Measurequantities • Calculate unit costs • Multiplyquantities by unit costs and sum!

  7. Perspective(s) of analysis • Whichshouldwe use? • Is societal perspective likely to givedifferentresultsthanhealth and social care perspective? Government perspective?

  8. Costs to measure How should the housingsubsidybetreated?

  9. Measuringquantities

  10. Measuring unit costs

  11. Calculating a unit cost for a visit to doctorat CLSC • Suppose CLSC has total expenditures of $1.2 million. It producesonlythree types of visits:

  12. Calculating unit cost… • Usingthese data, how wouldyoucalculate a unit cost per doctor’svisit? • Whatadditional data wouldyoulike to have to improveyourestimate?

  13. Costing the ACT team • Total budget of ACT team: $900,000 • Serves 90 clients • What data wouldyouwant and how wouldyou do the calculation?

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