Skip to main content
Top
Published in: Cost Effectiveness and Resource Allocation 1/2012

Open Access 01-12-2012 | Methodology

Applying the net-benefit framework for assessing cost-effectiveness of interventions towards universal health coverage

Authors: Sennen Hounton, David Newlands

Published in: Cost Effectiveness and Resource Allocation | Issue 1/2012

Login to get access

Abstract

In assessing the cost-effectiveness of an intervention, the interpretation and handling of uncertainties of the traditional summary measure, the Incremental Cost Effectiveness Ratio (ICER), can be problematic. This is particularly the case with strategies towards universal health coverage in which the decision makers are typically concerned with coverage and equity issues. We explored the feasibility and relative advantages of the net-benefit framework (NBF) (compared to the more traditional Incremental Cost-Effectiveness Ratio, ICER) in presenting results of cost-effectiveness analysis of a community based health insurance (CBHI) scheme in Nouna, a rural district of Burkina Faso. Data were collected from April to December 2007 from Nouna’s longitudinal Demographic Surveillance System on utilization of health services, membership of the CBHI, covariates, and CBHI costs. The incremental cost of a 1 increase in utilization of health services by household members of the CBHI was 433,000 XOF ($1000 approximately). The incremental cost varies significantly by covariates. The probability of the CBHI achieving a 1% increase in utilization of health services, when the ceiling ratio is $1,000, is barely 30% for households in Nouna villages compared to 90% for households in Nouna town. Compared to the ICER, the NBF provides more useful information for policy making.
Appendix
Available only for authorised users
Literature
1.
go back to reference Drummond MF, Sclpher MJ, Torrance GW, O’Brien BJ, Stoddart GL: Methods for the economic evaluation of health care programmes. Oxford University Press, New-York; 2005. Drummond MF, Sclpher MJ, Torrance GW, O’Brien BJ, Stoddart GL: Methods for the economic evaluation of health care programmes. Oxford University Press, New-York; 2005.
2.
go back to reference Hoch JS, Briggs AH, William AR: Something old, something new, something borrowed, something blue: a framework for the marriage of health econometrics and cost-effectiveness analysis. Health Econ 2002, 11: 415–430. 10.1002/hec.678PubMedCrossRef Hoch JS, Briggs AH, William AR: Something old, something new, something borrowed, something blue: a framework for the marriage of health econometrics and cost-effectiveness analysis. Health Econ 2002, 11: 415–430. 10.1002/hec.678PubMedCrossRef
3.
go back to reference Hoch JS, Rockx MA, Krahn AD: Using net-benefit regression framework to construct cost-effectiveness acceptability curves: an example using data from a trial of external loop recorders versus Holter monitoring for ambulatory monitoring of “community acquired” syncope. BMC Health Serv Res 2006, 6: 68. 10.1186/1472-6963-6-68PubMedCentralPubMedCrossRef Hoch JS, Rockx MA, Krahn AD: Using net-benefit regression framework to construct cost-effectiveness acceptability curves: an example using data from a trial of external loop recorders versus Holter monitoring for ambulatory monitoring of “community acquired” syncope. BMC Health Serv Res 2006, 6: 68. 10.1186/1472-6963-6-68PubMedCentralPubMedCrossRef
4.
go back to reference Hoch JS, Dewa CS: Lessons from trial-based cost-effectiveness analysis of mental health interventions. Why uncertainty about outcomes, estimates and willingness-to-pay matters. Pharmacoecnomics 2007,25(10):807–816. 10.2165/00019053-200725100-00001CrossRef Hoch JS, Dewa CS: Lessons from trial-based cost-effectiveness analysis of mental health interventions. Why uncertainty about outcomes, estimates and willingness-to-pay matters. Pharmacoecnomics 2007,25(10):807–816. 10.2165/00019053-200725100-00001CrossRef
5.
go back to reference Hoch JS, Blume JD: Measuring and illustrating statistical evidence in a cost-effectiveness analysis. J Health Econ 2008, 27: 476–495. 10.1016/j.jhealeco.2007.07.002PubMedCrossRef Hoch JS, Blume JD: Measuring and illustrating statistical evidence in a cost-effectiveness analysis. J Health Econ 2008, 27: 476–495. 10.1016/j.jhealeco.2007.07.002PubMedCrossRef
6.
go back to reference Claxton K: The irrelevance of inference: a decision making framework to the stochastic evaluation of health care technologies. J Health Econom 1999, 18: 341–364. 10.1016/S0167-6296(98)00039-3CrossRef Claxton K: The irrelevance of inference: a decision making framework to the stochastic evaluation of health care technologies. J Health Econom 1999, 18: 341–364. 10.1016/S0167-6296(98)00039-3CrossRef
7.
go back to reference Briggs A, Fenn P: Confidence intervals or surfaces? Uncertainty of the cost-effectiveness plane. Health Econ 1998, 7: 723–740. 10.1002/(SICI)1099-1050(199812)7:8<723::AID-HEC392>3.0.CO;2-OPubMedCrossRef Briggs A, Fenn P: Confidence intervals or surfaces? Uncertainty of the cost-effectiveness plane. Health Econ 1998, 7: 723–740. 10.1002/(SICI)1099-1050(199812)7:8<723::AID-HEC392>3.0.CO;2-OPubMedCrossRef
8.
go back to reference Briggs AH, Gray AM: Handling uncertainty when performing economic evaluation of healthcare interventions. Health Technol Assess 1999,3(2):1–134.PubMed Briggs AH, Gray AM: Handling uncertainty when performing economic evaluation of healthcare interventions. Health Technol Assess 1999,3(2):1–134.PubMed
9.
go back to reference Dong H, De Allegri M, Gnawali D, Souares A, Sauerborn R: Drop-out analysis of community-based health insurance membership at Nouna, Burkina Faso. Health Policy 2009,92(2–3):174–179.PubMedCrossRef Dong H, De Allegri M, Gnawali D, Souares A, Sauerborn R: Drop-out analysis of community-based health insurance membership at Nouna, Burkina Faso. Health Policy 2009,92(2–3):174–179.PubMedCrossRef
10.
go back to reference Dong H, Gbangou A, De Allegri M, Pokhrel S, Sauerborn R: The differences in characteristics between health-care users and non-users: implication for introducing community-based health insurance in Burkina Faso. Eur J Health Econ 2008,9(1):41–50. 10.1007/s10198-006-0031-4PubMedCrossRef Dong H, Gbangou A, De Allegri M, Pokhrel S, Sauerborn R: The differences in characteristics between health-care users and non-users: implication for introducing community-based health insurance in Burkina Faso. Eur J Health Econ 2008,9(1):41–50. 10.1007/s10198-006-0031-4PubMedCrossRef
11.
go back to reference Dong H, Kouyate B, Cairns J, Mugisha F, Sauerborn R: Willingness-to-pay for community-based insurance in Burkina Faso. Health Econ 2003,12(10):849–862. 10.1002/hec.771PubMedCrossRef Dong H, Kouyate B, Cairns J, Mugisha F, Sauerborn R: Willingness-to-pay for community-based insurance in Burkina Faso. Health Econ 2003,12(10):849–862. 10.1002/hec.771PubMedCrossRef
12.
go back to reference Dong H, Kouyate B, Cairns J, Sauerborn R: Differential willingness of household heads to pay community-based health insurance premia for themselves and other household members. Health Policy Plan 2004,19(2):120–126. 10.1093/heapol/czh014PubMedCrossRef Dong H, Kouyate B, Cairns J, Sauerborn R: Differential willingness of household heads to pay community-based health insurance premia for themselves and other household members. Health Policy Plan 2004,19(2):120–126. 10.1093/heapol/czh014PubMedCrossRef
13.
go back to reference De Allegri M, Sauerborn R: Community based health insurance in developing countries. BMJ 2007,334(7607):1282–1283. 10.1136/bmj.39240.632963.80PubMedCrossRef De Allegri M, Sauerborn R: Community based health insurance in developing countries. BMJ 2007,334(7607):1282–1283. 10.1136/bmj.39240.632963.80PubMedCrossRef
14.
go back to reference Lothgren M, Zethraeus N: Definitions, interpretation and calculation of cost effectiveness acceptability curves. Health Econ 2000, 9: 623–630. 10.1002/1099-1050(200010)9:7<623::AID-HEC539>3.0.CO;2-VPubMedCrossRef Lothgren M, Zethraeus N: Definitions, interpretation and calculation of cost effectiveness acceptability curves. Health Econ 2000, 9: 623–630. 10.1002/1099-1050(200010)9:7<623::AID-HEC539>3.0.CO;2-VPubMedCrossRef
15.
go back to reference Van Hout VA, Al MJ, Gordon GS, Rutten FF: Costs, effects and C/E ratios alongside a clinical trial. Health Econ 1994, 3: 309–319. 10.1002/hec.4730030505PubMedCrossRef Van Hout VA, Al MJ, Gordon GS, Rutten FF: Costs, effects and C/E ratios alongside a clinical trial. Health Econ 1994, 3: 309–319. 10.1002/hec.4730030505PubMedCrossRef
16.
go back to reference Schroeder E, Petrou S, Patel N, Hollowell J, Puddicombe D, Redshaw M, Brocklehurst P, Birthplace in England Collaborative Group: Cost effectiveness of alternative planned places of birth in woman at low risk of complications: evidence from the Birthplace in England national prospective cohort study. BMJ 2012, 344: e2292. 10.1136/bmj.e2292PubMedCentralPubMedCrossRef Schroeder E, Petrou S, Patel N, Hollowell J, Puddicombe D, Redshaw M, Brocklehurst P, Birthplace in England Collaborative Group: Cost effectiveness of alternative planned places of birth in woman at low risk of complications: evidence from the Birthplace in England national prospective cohort study. BMJ 2012, 344: e2292. 10.1136/bmj.e2292PubMedCentralPubMedCrossRef
17.
go back to reference Ranson MK, Sinha T, Chatterjee M, Gandhi F, Jayswal R, Patel F, Morris SS, Mills AJ: Equitable utilisation of Indian community based health insurance schemes among its rural membership: cluster randomised controlled trial. BMJ 2007,334(7607):1309. 10.1136/bmj.39192.719583.AEPubMedCentralPubMedCrossRef Ranson MK, Sinha T, Chatterjee M, Gandhi F, Jayswal R, Patel F, Morris SS, Mills AJ: Equitable utilisation of Indian community based health insurance schemes among its rural membership: cluster randomised controlled trial. BMJ 2007,334(7607):1309. 10.1136/bmj.39192.719583.AEPubMedCentralPubMedCrossRef
18.
go back to reference Chowdhury ME, Ronsmans C, Killewo J, Anwar I, Gausia K, Das-Gupta S, Blum LS, Dieltiens G, Marshall T, Saha S, Borghi J: Equity in use of home-based or facility-based skilled obstetric care in rural Bangladesh: an observational study. Lancet 2006,367(9507):327–332. 10.1016/S0140-6736(06)68070-7PubMedCrossRef Chowdhury ME, Ronsmans C, Killewo J, Anwar I, Gausia K, Das-Gupta S, Blum LS, Dieltiens G, Marshall T, Saha S, Borghi J: Equity in use of home-based or facility-based skilled obstetric care in rural Bangladesh: an observational study. Lancet 2006,367(9507):327–332. 10.1016/S0140-6736(06)68070-7PubMedCrossRef
Metadata
Title
Applying the net-benefit framework for assessing cost-effectiveness of interventions towards universal health coverage
Authors
Sennen Hounton
David Newlands
Publication date
01-12-2012
Publisher
BioMed Central
Published in
Cost Effectiveness and Resource Allocation / Issue 1/2012
Electronic ISSN: 1478-7547
DOI
https://doi.org/10.1186/1478-7547-10-8

Other articles of this Issue 1/2012

Cost Effectiveness and Resource Allocation 1/2012 Go to the issue