Objectives â¢ New drug approval process â¢ Pricing of new drugs â¢ Off ...

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3/15/13% Pharmacoeconomic Analyses 46 Analysis Type Cost Consequence Cost Minimization $ Equal (no denominator) Cost Effectiveness $ Natural Units Cost Benefit $ $ Cost Utility $ QALYs What is a life worth • People are willing to accept a risk of 0.000002 of death to save 7 min of walking : $1,170,000 • For each 0.0001 increase in risk of death, there is a $240 increase in annual salary: $2,400,000 • Each smoke detector reduces death risk by 0.000036 for a cost of $30: $400,000 • Willingness to pay for hypothetical auto safety feature: $1,600,000 Michael W. Jones-Lee, 1989 Pressure on Healthcare Decision Making Downward pressure Medical Need Value Upward pressure Affordability 16%
3/15/13% Dr. Gleason Promoted Xyrem • He was making as much as $3,000/day off Jazz • $450 for a face-to-face meeting in a doctor's office, • $750 to speak at a luncheon, • $1,500 for a dinner speech. • “He even gave up his medical practice, in order to devote all his time to "hawking" the $600- a-month drug.” http://evelynpringle.blogspot.com/2010/07/investigators-zero-in-on-pill-pushing.html 17%
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Page 7 and 8: 3/15/13% Transition probabilities 1
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Page 13 and 14: 3/15/13% Marcie Edmonds, 52, was st
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Objectives â¢ New drug approval process â¢ Pricing of new drugs â¢ Off ...