Article
Version 1
Preserved in Portico This version is not peer-reviewed
Stochastic Cost-Effectiveness Analysis on Global Benefits
Version 1
: Received: 20 April 2023 / Approved: 21 April 2023 / Online: 21 April 2023 (08:06:58 CEST)
How to cite: Chen, E. Stochastic Cost-Effectiveness Analysis on Global Benefits. Preprints 2023, 2023040680. https://doi.org/10.20944/preprints202304.0680.v1 Chen, E. Stochastic Cost-Effectiveness Analysis on Global Benefits. Preprints 2023, 2023040680. https://doi.org/10.20944/preprints202304.0680.v1
Abstract
Dealing with randomness is a crucial aspect that cost-effectiveness analysis (CEA) tools need to address, but existing stochastic CEA tools have rarely examined risk and return from the perspective of global benefits. This paper proposes a stochastic CEA tool that supports medical decision-making from the perspective of global benefits of risk and return, the risk-adjusted incremental cost-effectiveness ratio (ICER). The tool has a traditional form of ICER but uses the risk-adjusted expected cost. Theoretically, we prove that the tool can provide marginal medical decisions that promote the risk-return level on global benefits within any intervention structure and can also serve as a discriminating condition for the optimal intervention structure. Numerical simulations within a framework of mean-variance support the conclusions in this paper.
Keywords
cost-effectiveness analysis, global benefits, risk-adjusted ICER
Subject
Public Health and Healthcare, Public Health and Health Services
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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