Value & Valuation
The economic evaluation of medical interventions – in particular, in the context of Health Technology Assessments (HTAs) – invariably implies some kind of (explicit or implicit) cost value analysis. One possible anchor is the value of a statistical life year (VSLY). However, currently used benchmarks for the willingness-to-pay (WTP) per quality-adjusted life year (QALY) gained are controversial. In economics, WTP represents the concept of stated or revealed preferences and hence can be interpreted as a demand-side perspective. As an alternative measure, especially in resource-constrained health care systems, shadow prices for a QALY have been proposed and computed. Unfortunately, these calculations rest on a set of assumptions and conventions (“the logic of cost effectiveness”), some of which must be considered “descriptively flawed” (Dolan et al., 2005). Descriptively flawed is nothing less than a euphemism for “empirically falsified,” unless one was prepared to ignore well-documented social norms and preferences.
Against this background, we have initiated a comprehensive project to understand the use of thresholds in the context of CEA, considering the relevant scientific literature, WHO statements, and policy recommendation, and to bring about a more balanced perspective on the roles and limitations of cost effectiveness thresholds (CETs), contributing to worldwide dialogues on their use in the context of HTA.
The Institute and its members have been heavily involved in a broad range of (other) projects, past and ongoing, that are dedicated to exploring and further improving currently used valuation methods of “life and limb” (cf. Mishan, 1971; Viscusi, 1978; Jones-Lee, 1985).
More detailed information will follow soon, including projects on the following topics:
- Health-Related Quality of Life (HRQoL)
- Patient-Reported Outcomes (PROs)
- Socioeconomic Impact (SEI) Research
- Social Cost Value Analysis (SCVA
- The Value of a Statistical Life Year (VSLY)
- The Ultra-Rare Disease (URD) Evaluation Consensus Project