The Importance of Health

Economic Evaluation in UHC

Didik Setiawan, PhD., Apt

- Faculty of Pharmacy,
- Center for Health Economic Studies,
Universitas Muhammadiyah Purwokerto, Purwokerto, Indonesia
Introduction

Health Care Services

People will generally suffer, due to:

limited access to Inability to afford the
services low quality of services services
Bacckground
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Universal Health Coverage (UHC)

current pooled funds is always

limited

need a budget allocation methods

Health Economic Evaluation

Health Economic Evaluation

provide information (evidence) to decision

makers for efficient use of available
resources for maximizing health benefits

Health economic evaluation is two

dimensional analysis from two (or more)
alternatives of health technology
• two dimension: input (cost) and output. (Health,
monetary, humanistics)
• Health technology: drugs, medication technology,
diagnostic tools, prevention strategy
Cost
Effectiveness
Plane (CEP)
How cost effectiveness analysis works?

Drugs Costs ($) Outcomes

A 10,000 0.75
B1 10.500 0.83
B2 9.800 0.80
B3 10.800 0.78
How cost effectiveness analysis works?

Drugs Costs ($) Outcomes

A 10,000 0.75
B1 10.500 0.83
B2 9.800 0.80
B3 10.800 0.78
How cost effectiveness analysis works?

Drugs Costs ($) Outcomes

A 10,000 0.75
B1 10.500 0.83
B2 9.800 0.80
B3 10.800 0.78
Incremental Cost Effectiveness Ratio (ICER)

𝐶& − 𝐶( Biaya
QALYs
Selisih
ICER (I$)
𝐼𝐶𝐸𝑅 = (I$) Biaya (I$) QALYs
𝐸& − 𝐸(
Obat A 10,000 0.75 Referensi Referensi Referensi
Obat B1 10,500 0.83 500 0.08 6,250
Obat B2 9,800 0.80 -200 0.05 -5,000
Obat B3 10,800 0.78 800 0.03 26,667

Decision maker needs a cut off points or threshold called willingness to pay (WTP)
Willingness
to pay
Decision Making Process

B1 B2 B3
WTP Threshold
(ICER I$6,250) (ICER -I$5,000) (ICER I$26,667)
I$5,000,- Reject Accept Reject
I$10,000,- Accept Accept Reject
I$20,000,- Accept Accept Reject
I$30,000,- Accept Accept Accept
Didik Setiawan, PhD., Apt

Email: d.didiksetiawan@gmail.com
WA: +31 631 254575
Phone: 081 226 700 119
www.ches.ump.ac.id