Skip to main content
Log in

Economic Decision Making in Healthcare

A Standard Approach to Discounting Health Outcomes

  • Leading Article
  • Published:
PharmacoEconomics Aims and scope Submit manuscript

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

References

  1. Shepard DS, Thompson MS. First principles of cost–effectiveness analysis in health. Public Health Rep 1979; 94: 535–43

    PubMed  CAS  Google Scholar 

  2. Weinstein MC, Stason WB, Cost–effectivenes of interventions to prevent or treat coronary heart disease. Annu Rev Public Health 1985; 6: 41–63

    Article  PubMed  Google Scholar 

  3. Lec JT, Sanchez LA. Interpretation of ‘cost–effective’ and soundness of economic evaluations in the pharmacy literature. Am J Hosp Pharm 1991; 48: 2622–7

    Google Scholar 

  4. Warner KE, Luce BR. Cost–benefit and cost–effectiveness analysis in health care: principles, practice and potential. Ann Arbor, MJ: Health Administration Press, 1982

    Google Scholar 

  5. Drummond MF, Stoddard GL, Torrance GW. Methods for the economic evaluation of health care programs. Oxford: Oxford University Press, 1986: 5–38

  6. Guyatt G, Drummond M, Feeny D, et al. Guidelines for the clinical and economic evaluation of health care technologies. Soc Sci Med 1986: 22: 393–408

    Article  PubMed  CAS  Google Scholar 

  7. Weinstein MC, Stason WB. Foundations of cost–effectiveness analysis for health and medicaI practices. N Engl J Med 1977: 296: 716–21

    Article  PubMed  CAS  Google Scholar 

  8. Keeler EB, Cretin S. Discounting of life–saving and other non–monetary effects. Manage Sci 1983: 29: 300–6

    Article  Google Scholar 

  9. La Puma J, Lawlor EF. Quality–adjusted life–years: ethical implications for physicians and policymakers. JAMA 1990: 263: 2917–21

    Article  PubMed  Google Scholar 

  10. Parsonage M, Neuberger H. Discounting and health benefits. Health Econ 1992: 1: 71–6

    Article  PubMed  CAS  Google Scholar 

  11. Johannesson M. On the discounting of gained life–years in cost effectiveness analysis. Int J Techn Assess Health Care 1992: 8: 359–64

    Article  CAS  Google Scholar 

  12. Udvarhelyi IS, Colditz GA, Rai A, et al. Cost–effectiveness and cost–benefit analyses in the medical literature. Are the methods being used correctly? Ann Intern Med 1992: 116: 238–44

    PubMed  CAS  Google Scholar 

  13. Adams ME, McCall NT, Gray DT, et al. Economic analysis in randomized controlled trials. Med Care 1992: 30: 231–43

    Article  PubMed  CAS  Google Scholar 

  14. Hillman AL, Eisenberg JM, Pauly MV, et al. Avoiding bias in the conduct and reporting of cost–effectiveness research sponsored by pharmaceutical companies. N Engl J Med 1991; 324: 1362–5

    Article  PubMed  CAS  Google Scholar 

  15. Eisenberg JM. Clinical economics: a guide to the economic analysis of clinical practices. JAMA 1989; 262: 2579–86

    Google Scholar 

  16. Coyle D, Tolley K. Discounting of health benefits in the pharmacoeconomic analysis of drug therapies: an issue for debate? Pharmacoeconomics 1992; 2: 153–62

    Article  PubMed  CAS  Google Scholar 

  17. Robinson J. Philosophical origins of the social rate of discount in cost–benefit analysis. Milbank Q 1990: 68 (2), 245–65

    Article  PubMed  CAS  Google Scholar 

  18. Katz DA, Welch HG. Discounting in cost–effectiveness analysis of health care programs. Pharmacoeconornics 1993: 3: 276–85

    Article  CAS  Google Scholar 

  19. Olsen JA. On what basis should health be discounted? J Health Econ 1993: 12: 347–52

    Google Scholar 

  20. Marglin SA. The social rate of discount and the optimal rate of investment. Q J Econ 1963; 77: 95–111

    Article  Google Scholar 

  21. Ramsey FP. A mathematical theory of saving. Econ J 1928; 38: 543–59

    Article  Google Scholar 

  22. Rawls J. A theory of justice. Cambridge, MA: Harvard University Press, 1971

  23. Pigou AC. The economics of welfare. London: Macmillan, 1920

  24. Hammitt JK, Discounting health increments. J Health Econ 1993: 12; 117–20

    Article  PubMed  CAS  Google Scholar 

  25. Raiffa H. Decision analysis: introductory lectures on choices under uncertainty. Reading, MA: Addison-Wesley Publishing Company, 1968

    Google Scholar 

  26. Cropper ML, Aydede SK, Portney PR. Discounting human lives. Discussion paper CRM 91–05. Resources for the Future. Washington, DC: Johns Hopkins University Press, 1991

    Google Scholar 

  27. Moore MJ, Viscusi WK. Discounting environmental health risks: new evidence and policy implications. J Environ Econ Manage 1990: 18: 551–62

    Article  Google Scholar 

  28. Portney PR. Comments on ‘discounting’ session. J Environ Econ Manage 1990; 18: 563–4

    Article  Google Scholar 

  29. Cairns J. Health, wealth and time preference. Discussion paper 07/91. Aberdeen: Health Economics Research Unit, 1991

    Google Scholar 

  30. Mooney GH. Economics, medicine and health care. London: Harvester Wheatsheaf, 1986

  31. Welch HG. Comparing apples and oranges: does cost–effectiveness analysis deal fairly with the old and young? Gerontologist 1991; 31 (3): 332–6

    Article  PubMed  CAS  Google Scholar 

  32. Boyle MH, Torrance GW, Sinclair JC, et al. Economic evaluation of neonatal intensive care of very low birthweight infants. N Engl J Med 1983; 308: 1330–7

    Article  PubMed  CAS  Google Scholar 

  33. Robers SD, Maxwell DR, Gross TL. Cost–effective care of end–stage renal disease: a billion dollar queslion. Ann Intern Med 1980: 92: 243–8

    Google Scholar 

  34. Kinosian SP, Eisenberg JM. Cutting into cholesterol: cost–effective alternatives for treating hypercholesterolemia. JAMA 1988: 259: 2249–54

    Article  PubMed  CAS  Google Scholar 

  35. Laupacis A, Feeny D, Detsky AS, et al. How attractive does a new technology have to be to warrant adoption and utilization? Tentative guidelines for using clinical and economic evaluations. Can Med Assoc J 1992; 140: 473–81

    Google Scholar 

  36. Hadorn DC. Setting health priorities in Oregon: cost–effectiveness meets the rule of rescue. JAMA 1991: 265: 2218–25

    Article  PubMed  CAS  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Hillman, A.L., Kim, M.S. Economic Decision Making in Healthcare. Pharmacoeconomics 7, 198–205 (1995). https://doi.org/10.2165/00019053-199507030-00003

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.2165/00019053-199507030-00003

Keywords

Navigation