Optimal allocation of resources over health care programmes: dealing with decreasing marginal utility and uncertainty.
This paper addresses the problem of how to value health care programmes with different ratios of costs to effects, specifically when taking into account that these costs and effects are uncertain. First, the traditional framework of maximising health effects with a given health care budget is extended to a flexible budget using a value function over money and health effects. Second, uncertainty surrounding costs and effects is included in the model using expected utility. Other approaches to uncertainty that do not specify a utility function are discussed and it is argued that these also include implicit notions about risk attitude.
Al
Maiwenn J
MJ
Institute for Medical Technology Assessment, Erasmus Medical Center, Rotterdam, The Netherlands. Al@bmg.eur.nl
Feenstra
Talitha L
TL
Hout
Ben A van
BA
D002017:Budgets / Q000458:organization & administration; D003362:Cost-Benefit Analysis; D003661:Decision Support Techniques; D017048:Health Care Costs; D015276:Health Care Rationing / Q000191:economics* / Q000379:methods*; D006296:Health Services / Q000191:economics*; D006302:Health Services Research / Q000191:economics; D018803:Models, Economic; D035501:Uncertainty