Skip to main content
Top
Published in: The European Journal of Health Economics 1/2013

Open Access 01-02-2013 | Original Paper

Balancing equity and efficiency in the Dutch basic benefits package using the principle of proportional shortfall

Authors: E. J. van de Wetering, E. A. Stolk, N. J. A. van Exel, W. B. F. Brouwer

Published in: The European Journal of Health Economics | Issue 1/2013

Login to get access

Abstract

Economic evaluations are increasingly used to inform decisions regarding the allocation of scarce health care resources. To systematically incorporate societal preferences into these evaluations, quality-adjusted life year gains could be weighted according to some equity principle, the most suitable of which is a matter of frequent debate. While many countries still struggle with equity concerns for priority setting in health care, the Netherlands has reached a broad consensus to use the concept of proportional shortfall. Our study evaluates the concept and its support in the Dutch health care context. We discuss arguments in the Netherlands for using proportional shortfall and difficulties in transitioning from principle to practice. In doing so, we address universal issues leading to a systematic consideration of equity concerns for priority setting in health care. The article thus has relevance to all countries struggling with the formalization of equity concerns for priority setting.
Footnotes
1
Asserting that a disease has a low necessity of treatment is in itself difficult. A relatively small health loss may be due to something severe during a small period of time or something relatively mild but chronic. Such profiles may be evaluated differently, as discussed later in the text.
 
2
Obviously, this also depends on whether one wishes to consider societal preferences to be a good guide for normative choices.
 
Literature
1.
go back to reference Dolan, P., Shaw, R., Tsuchiya, A., Williams, A.: QALY maximisation and people’s preferences: a methodological review of the literature. Health Econ. 14, 197–208 (2005)PubMedCrossRef Dolan, P., Shaw, R., Tsuchiya, A., Williams, A.: QALY maximisation and people’s preferences: a methodological review of the literature. Health Econ. 14, 197–208 (2005)PubMedCrossRef
2.
go back to reference Schwappach, D.L.B.: Resource allocation, social values and the QALY: a review of the debate and empirical evidence. Health Expect. 5(3), 210–222 (2002)PubMedCrossRef Schwappach, D.L.B.: Resource allocation, social values and the QALY: a review of the debate and empirical evidence. Health Expect. 5(3), 210–222 (2002)PubMedCrossRef
3.
go back to reference Cookson, R., Drummond, M., Weatherly, H.: Explicit incorporation of equity considerations into economic evaluation of public health interventions. Health Econ. Policy Law 4(02), 231–245 (2009)PubMedCrossRef Cookson, R., Drummond, M., Weatherly, H.: Explicit incorporation of equity considerations into economic evaluation of public health interventions. Health Econ. Policy Law 4(02), 231–245 (2009)PubMedCrossRef
4.
5.
go back to reference Schreyögg, J., Stargardt, T., Velasco-Garrido, M., Busse, R.: Defining the “Health benefit basket” in nine european countries. Eur. J. Health Econ. 6, 2–10 (2005)CrossRef Schreyögg, J., Stargardt, T., Velasco-Garrido, M., Busse, R.: Defining the “Health benefit basket” in nine european countries. Eur. J. Health Econ. 6, 2–10 (2005)CrossRef
6.
go back to reference Pronk, M.H., Bonsel, G.J.: Out-patient drug policy by clinical assessment rather than financial constraints? Eur. J. Health Econ. 5(3), 274–277 (2004)PubMedCrossRef Pronk, M.H., Bonsel, G.J.: Out-patient drug policy by clinical assessment rather than financial constraints? Eur. J. Health Econ. 5(3), 274–277 (2004)PubMedCrossRef
7.
go back to reference Dakin, H.A., Devlin, N.J., Odeyemi, I.A.O.: “Yes”, “No” or “Yes, but”? multinomial modelling of NICE decision-making. Health Policy 77(3), 352–367 (2006)PubMedCrossRef Dakin, H.A., Devlin, N.J., Odeyemi, I.A.O.: “Yes”, “No” or “Yes, but”? multinomial modelling of NICE decision-making. Health Policy 77(3), 352–367 (2006)PubMedCrossRef
8.
go back to reference Devlin, N., Parkin, D.: Does NICE have a cost-effectiveness threshold and what other factors influence its decisions? A binary choice analysis. Health Econ. 13(5), 437–452 (2004)PubMedCrossRef Devlin, N., Parkin, D.: Does NICE have a cost-effectiveness threshold and what other factors influence its decisions? A binary choice analysis. Health Econ. 13(5), 437–452 (2004)PubMedCrossRef
9.
go back to reference George, B., Harris, A., Mitchell, A.: Cost-effectiveness analysis and the consistency of decision making: evidence from pharmaceutical reimbursement in australia (1991–1996). Pharmacoeconomics 19(11), 1103–1109 (2001)PubMedCrossRef George, B., Harris, A., Mitchell, A.: Cost-effectiveness analysis and the consistency of decision making: evidence from pharmaceutical reimbursement in australia (1991–1996). Pharmacoeconomics 19(11), 1103–1109 (2001)PubMedCrossRef
10.
go back to reference Rutten, F., Van Busschbach, J.: How to define a basic package of health services for a tax funded or social insurance based health care system? Eur. J. Health Econ. 2(2), 45–46 (2001)CrossRef Rutten, F., Van Busschbach, J.: How to define a basic package of health services for a tax funded or social insurance based health care system? Eur. J. Health Econ. 2(2), 45–46 (2001)CrossRef
11.
go back to reference Cookson, R., McCabe, C., Tsuchiya, A.: Public healthcare resource allocation and the rule of rescue. Br. Med. J. 34(7), 540 (2008) Cookson, R., McCabe, C., Tsuchiya, A.: Public healthcare resource allocation and the rule of rescue. Br. Med. J. 34(7), 540 (2008)
12.
go back to reference Appleby, J., Devlin, N., Parkin, D., Buxton, M., Chalkidou, K.: Searching for cost effectiveness thresholds in the NHS. Health Policy 91(3), 239–245 (2009)PubMedCrossRef Appleby, J., Devlin, N., Parkin, D., Buxton, M., Chalkidou, K.: Searching for cost effectiveness thresholds in the NHS. Health Policy 91(3), 239–245 (2009)PubMedCrossRef
13.
go back to reference Rawlins, M.D., Culyer, A.J.: National institute for clinical excellence and its value judgments. Br. Med. J. 329(7459), 224 (2004)CrossRef Rawlins, M.D., Culyer, A.J.: National institute for clinical excellence and its value judgments. Br. Med. J. 329(7459), 224 (2004)CrossRef
14.
go back to reference NICE: Appraising life-extending, end of life treatments (2009) NICE: Appraising life-extending, end of life treatments (2009)
15.
go back to reference Dunning, A.J.: Kiezen en delen Advies in Hoofdzaken Van De Commissie Keuzen in De Zorg. Albani, Den Haag (1991) Dunning, A.J.: Kiezen en delen Advies in Hoofdzaken Van De Commissie Keuzen in De Zorg. Albani, Den Haag (1991)
16.
go back to reference CVZ: Breedte geneesmiddelenpakket. College voor Zorgverzekeringen, Amstelveen (2001) CVZ: Breedte geneesmiddelenpakket. College voor Zorgverzekeringen, Amstelveen (2001)
17.
go back to reference RVZ: Zinnige en duurzame zorg. RVZ rapport, Den Haag (2006) RVZ: Zinnige en duurzame zorg. RVZ rapport, Den Haag (2006)
18.
go back to reference RVZ: Rechtvaardige en duurzame zorg. Den Haag (2007) RVZ: Rechtvaardige en duurzame zorg. Den Haag (2007)
19.
go back to reference CVZ: Pakketbeheer in de praktijk. Diemen: CVZ Rapport (2006) CVZ: Pakketbeheer in de praktijk. Diemen: CVZ Rapport (2006)
20.
go back to reference Gravelle, H., Brouwer, W., Niessen, L., Postma, M., Rutten, F.: Discounting in economic evaluations: stepping forward towards optimal decision rules. Health Econ. 16(3), 307–318 (2007)PubMedCrossRef Gravelle, H., Brouwer, W., Niessen, L., Postma, M., Rutten, F.: Discounting in economic evaluations: stepping forward towards optimal decision rules. Health Econ. 16(3), 307–318 (2007)PubMedCrossRef
21.
go back to reference Bleichrodt, H., Quiggin, J.: Life-cycle preferences over consumption and health: when is cost-effectiveness analysis equivalent to cost-benefit analysis? J. Health Econ. 18(6), 681–708 (1999)PubMedCrossRef Bleichrodt, H., Quiggin, J.: Life-cycle preferences over consumption and health: when is cost-effectiveness analysis equivalent to cost-benefit analysis? J. Health Econ. 18(6), 681–708 (1999)PubMedCrossRef
22.
go back to reference Dolan, P., Edlin, R.: Is it really possible to build a bridge between cost-benefit analysis and cost-effectiveness analysis? J. Health Econ. 21(5), 827–843 (2002)PubMedCrossRef Dolan, P., Edlin, R.: Is it really possible to build a bridge between cost-benefit analysis and cost-effectiveness analysis? J. Health Econ. 21(5), 827–843 (2002)PubMedCrossRef
23.
go back to reference Claxton, K., Paulden, M., Gravelle, H., Brouwer, W.B.F., Culyer, A.J.: Discounting and decision making in the economic evaluation of health care technologies. Health Econ. 20(1), 2–15 (2011) Claxton, K., Paulden, M., Gravelle, H., Brouwer, W.B.F., Culyer, A.J.: Discounting and decision making in the economic evaluation of health care technologies. Health Econ. 20(1), 2–15 (2011)
24.
go back to reference Williams, A.: Intergenerational equity: an exploration of the ‘fair innings’ argument. Health Econ. 6(2), 117–132 (1997)PubMedCrossRef Williams, A.: Intergenerational equity: an exploration of the ‘fair innings’ argument. Health Econ. 6(2), 117–132 (1997)PubMedCrossRef
25.
go back to reference Williams, A., Cookson, R.: Equity in health. Handb. Health Econ. 1, 1863–1910 (2000)CrossRef Williams, A., Cookson, R.: Equity in health. Handb. Health Econ. 1, 1863–1910 (2000)CrossRef
26.
go back to reference Nord, E.: Concerns for the worse off: fair innings versus severity. Soc. Sci. Med. 60(2), 257–263 (2005) Nord, E.: Concerns for the worse off: fair innings versus severity. Soc. Sci. Med. 60(2), 257–263 (2005)
27.
28.
go back to reference Dolan, P., Olsen, J.A.: Equity in health: the importance of different health streams. J. Health Econ. 20(5), 823–834 (2001)PubMedCrossRef Dolan, P., Olsen, J.A.: Equity in health: the importance of different health streams. J. Health Econ. 20(5), 823–834 (2001)PubMedCrossRef
29.
30.
31.
go back to reference Stolk, E.A., Pickee, S.J., Ament, A.H.J.A., Busschbach, J.J.V.: Equity in health care prioritisation: an empirical inquiry into social value. Health Policy 74(3), 343–355 (2005)PubMedCrossRef Stolk, E.A., Pickee, S.J., Ament, A.H.J.A., Busschbach, J.J.V.: Equity in health care prioritisation: an empirical inquiry into social value. Health Policy 74(3), 343–355 (2005)PubMedCrossRef
32.
go back to reference Nord, E.: Concerns for the worse off: fair innings versus severity. Soc. Sci. Med. 60(2), 257–263 (2005)PubMedCrossRef Nord, E.: Concerns for the worse off: fair innings versus severity. Soc. Sci. Med. 60(2), 257–263 (2005)PubMedCrossRef
33.
go back to reference Shah, K.K.: Severity of illness and priority setting in healthcare: a review of the literature. Health Policy 93(2–3), 77–84 (2009) Shah, K.K.: Severity of illness and priority setting in healthcare: a review of the literature. Health Policy 93(2–3), 77–84 (2009)
34.
go back to reference Oliver, A.: A fair test of the fair innings? Med. Decis. Mak. 29(4), 491 (2009)CrossRef Oliver, A.: A fair test of the fair innings? Med. Decis. Mak. 29(4), 491 (2009)CrossRef
35.
go back to reference Stolk, E.A., van Donselaar, G., Brouwer, W.B.F., Busschbach, J.J.V.: Reconciliation of economic concerns and health policy: illustration of an equity adjustment procedure using proportional shortfall. Pharmacoeconomics 22(17), 1097 (2004)PubMedCrossRef Stolk, E.A., van Donselaar, G., Brouwer, W.B.F., Busschbach, J.J.V.: Reconciliation of economic concerns and health policy: illustration of an equity adjustment procedure using proportional shortfall. Pharmacoeconomics 22(17), 1097 (2004)PubMedCrossRef
36.
go back to reference Cookson, R., Dolan, P.: Principles of justice in health care rationing. J. Med. Ethics 26(5), 323 (2000)PubMedCrossRef Cookson, R., Dolan, P.: Principles of justice in health care rationing. J. Med. Ethics 26(5), 323 (2000)PubMedCrossRef
37.
go back to reference Boer, B.: Onderzoek op maat: Een verkenning van factoren voor het gebruik van medical technology assessment (2002) Boer, B.: Onderzoek op maat: Een verkenning van factoren voor het gebruik van medical technology assessment (2002)
38.
go back to reference CVZ: Vervolgonderzoek breedte geneesmiddelenpakket. College voor Zorgverzekeringen, Amstelveen (2002) CVZ: Vervolgonderzoek breedte geneesmiddelenpakket. College voor Zorgverzekeringen, Amstelveen (2002)
39.
go back to reference Zwaap, J., Mastenbroek, C.G., van der Heiden, L.A.: Pakketbeheer in de praktijk 2. College voor Zorgverzekeringen, Amstelveen (2009) Zwaap, J., Mastenbroek, C.G., van der Heiden, L.A.: Pakketbeheer in de praktijk 2. College voor Zorgverzekeringen, Amstelveen (2009)
40.
go back to reference Brouwer, W.: De basis van het pakket: Urgente uitdagingen voor de opzet en inzet van economische evaluaties in de zorg (2009) Brouwer, W.: De basis van het pakket: Urgente uitdagingen voor de opzet en inzet van economische evaluaties in de zorg (2009)
41.
go back to reference Nord, E., Pinto, J.L., Richardson, J., Menzel, P., Ubel, P.: Incorporating societal concerns for fairness in numerical valuations of health programmes. Health Econ. 8(1): 25–39 (1999) Nord, E., Pinto, J.L., Richardson, J., Menzel, P., Ubel, P.: Incorporating societal concerns for fairness in numerical valuations of health programmes. Health Econ. 8(1): 25–39 (1999)
42.
go back to reference Stolk, E.A.: Uitwerking van het pakketprincipe noodzakelijkheid; dimensie ziektelast. College voor Zorgverzekeringen, Diemen (2009) Stolk, E.A.: Uitwerking van het pakketprincipe noodzakelijkheid; dimensie ziektelast. College voor Zorgverzekeringen, Diemen (2009)
43.
go back to reference Johannesson, M.: Should we aggregate relative or absolute changes in QALYs? Health Econ. 10(7), 573–577 (2001)PubMedCrossRef Johannesson, M.: Should we aggregate relative or absolute changes in QALYs? Health Econ. 10(7), 573–577 (2001)PubMedCrossRef
44.
go back to reference Green, C., Gerard, K.: Exploring the social value of health-care interventions: a stated preference discrete choice experiment. Health Econ. 18(8), 951–976 (2008)CrossRef Green, C., Gerard, K.: Exploring the social value of health-care interventions: a stated preference discrete choice experiment. Health Econ. 18(8), 951–976 (2008)CrossRef
Metadata
Title
Balancing equity and efficiency in the Dutch basic benefits package using the principle of proportional shortfall
Authors
E. J. van de Wetering
E. A. Stolk
N. J. A. van Exel
W. B. F. Brouwer
Publication date
01-02-2013
Publisher
Springer-Verlag
Published in
The European Journal of Health Economics / Issue 1/2013
Print ISSN: 1618-7598
Electronic ISSN: 1618-7601
DOI
https://doi.org/10.1007/s10198-011-0346-7

Other articles of this Issue 1/2013

The European Journal of Health Economics 1/2013 Go to the issue