3A.8 Results of the base-case economic evaluation

Page last updated: September 2016

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  • Calculate the proposed medication cost per patient (Subsection 3A.8.1)
  • Provide a stepped presentation of the cost-effectiveness results, and present the base-case incremental cost-effectiveness ratio (Subsection 3A.8.2)
  • Present disaggregated and aggregated costs and outcomes for the proposed medicine and its main comparator (Subsection 3A.8.3)
  • Summarise the base-case estimate of the incremental cost-effectiveness ratio (Subsection 3A.8.4)

3A.8.1 Intervention costs per patient

Present the expected costs of the proposed medicine and comparator (individually) per patient per course for an acute or self-limited therapy, or the cost per patient per year for a chronic or continuing therapy. This estimate should be consistent with estimates of per-patient use in Section 4.

3A.8.2 Stepped presentation of results

If the model translates clinical data, present the results of the key steps involved in transforming the comparative data (from Section 2) into the modelled base-case estimate of incremental cost-effectiveness.

Begin with an analysis of costs and outcomes that are directly associated with the comparative data presented in Section 2. Where the following procedures are undertaken to estimate the base case, sequentially present re-estimated costs and outcomes (and interim results) for each step:

  • transformation(s) for applicability
  • transformation of surrogate outcomes to clinical outcomes
  • extrapolation of data over longer time periods
  • additional data or assumptions
  • transformation of clinical outcomes to final health outcomes (QALYs).

Identify the steps or assumptions of the model that have important impacts on the ICER.

Table 3A.8.1 shows an example of how to present this analysis.

Table 3A.8.1 Presentation of the stepped derivation of the base-case economic evaluation from the clinical study data

Steps (only included if undertaken)

Proposed medicine costs

Comparator costs

Incremental costs

Proposed medicine health outcomes

Comparator health outcomes

Incremental health outcomes

Incremental cost-effectiveness ratio

Comparative study data (as presented in Section 2); Setting: (trial setting); Time horizon: (trial follow-up)

[A]a

[B]a

[A – B]

[C] (surrogate outcome)b

[D] (surrogate outcome)b

[C – D] (surrogate outcome)

$[A – B]/[C – D] per [surrogate outcome]

Study evidence transformed from surrogate to clinical outcome (C→E, D→F)c

[A]

[B]

[A – B]

[E] (clinical outcome)

[F] (clinical outcome)

[E – F] (clinical outcome)

$[A – B]/[E – F] per [clinical outcome]

Study evidence transformed to clinical outcome and translated to the Australian population and/or Australian setting (may need multiple steps)

[modified A]d

[modified B]d

[modified A – modified B]

[modified E]e

[modified F]e

[modified E – modified F]

$[modified A – modified B]/[modified E – modified F] per [clinical outcome]

Study evidence transformed to clinical outcome, translated to the Australian population/setting, and extrapolated to the appropriate time horizon

[modified & extrapolated A] = [G]

[modified & extrapolated B] = [H]

[G – H]

[modified & extrapolated E] = [I]

[modified & extrapolated F] = [J]

[I – J]

$[G – H]/[I – J] per [clinical outcome]

Study evidence transformed to clinical outcome, translated to the Australian population/setting, extrapolated and with additional assumptions or modelled information

(G + w) = [K]f

(H + x) = [L]f

[K – L]

(I + y) = [M]g

(J + z) = [N]g

[M – N]

$[K – L]/[M – N] per [clinical outcome]

Study evidence translated to clinical outcomes, the Australian population/setting, extrapolated, with additional modelling and transformed into a relevant health outcome (eg QALYs)(M→O, N→P)

K

L

[K – L]

[O]

[P]

[O – P]

$[K – L]/[O – P] per QALY

QALY = quality-adjusted life year

a Key outcome(s) from comparative data (presented in Section 2) used to generate
‘treatment effect’ in the economic evaluation, without any modification.

b If resource data are not provided, estimate resource use and apply costs (Australian $)
within the study period.

c Evidence to justify the transformation of the surrogate outcome to the clinical outcome
and the method employed should be fully documented in Subsection 3A.5.

d Include here any transformations to estimated outcomes to increase applicability to the
Australian population or setting.

e Include here any modelled changes in the provision of resources that would occur in
the Australian health care setting.

f Re-estimate of outcomes after including additional data or assumptions that were not
captured in the key comparative clinical data (eg adverse events or second-line
treatments).

g Re-estimate of costs after including additional data or assumptions that were not
captured in the key comparative clinical data (eg adverse events or second-line
treatments).

The order of the steps for the translation of the trial-based economic evaluation may vary. Firstly, incorporate the patient-relevant health outcome if the study outcome is a surrogate. Secondly, translate the effect as necessary to match the Australian population.

The final row of Table 3A.8.1 incorporates all translation studies and additional modelling to complete the impacts of translation of the trial-based economic evaluation into a modelled economic evaluation. Ensure that this corresponds to the base-case ICER.

The stepped presentation informs the face validity of the results, and identifies assumptions and approaches to be examined in more detail in sensitivity analyses. For example, if the main impact is achieved by extrapolating the final outcome over time, then undertake comprehensive sensitivity analyses around the extrapolation methods.

Present the base-case incremental cost, incremental effectiveness and ICER (calculated as the incremental costs divided by the incremental health outcomes).

3A.8.3 Disaggregated and aggregated base-case results

If a decision-tree model is used, present a detailed disaggregation of costs incurred at each branch by resource type for the intervention and comparator groups. For state transition models, present disaggregated discounted costs by resource type for each health state for the intervention and comparator groups. In all models, report the proportions of patients predicted to experience alternative target clinical outcomes in the intervention and comparator groups.

Alternative examples of tables showing disaggregated costs are provided in Tables 3A.8.2 and 3A.8.3.

Table 3A.8.2 Health care resource items: disaggregated summary of cost impacts in the economic evaluation

Type of resource item

Subtype of resource item

Costsa for proposed medicine

Costsa for main comparator

Incremental costa

% of total incremental costa

Medicines

PBS medicine

$x1 $x2 $xk

$y1 $y2 $yk

$x1 ­– $y1 $x2 – $y2 $xk – $yk

z1% z2% zk%

Health state 1

∑$x

∑$y

∑$x – ∑$y

∑z%

Health state 2

[add]

[add]

[add]

[add]

[etc]

[add]

[add]

[add]

[add]

Total

[add]

[add]

[add]

[add]

Non-PBS medicine

[add]

[add]

[add]

[add]

Health state 1

[add]

[add]

[add]

[add]

Health state 2

[add]

[add]

[add]

[add]

[etc]

[add]

[add]

[add]

[add]

Total

[add]

[add]

[add]

[add]

Medical services

Type of medical practitioner attendance

As above

As above

As above

As above

Health state 1

[add]

[add]

[add]

[add]

[etc]

[add]

[add]

[add]

[add]

Total

[add]

[add]

[add]

[add]

Hospital services

Hospital admission

[add]

[add]

[add]

[add]

Health state 1

[add]

[add]

[add]

[add]

[etc]

[add]

[add]

[add]

[add]

Total

[add]

[add]

[add]

[add]

Residential care

ACFI category

A$x

A$y

$x – $y

z%

Total

A$x

A$y

$x – $y

100%

ACFI = Aged Care Funding Instrument; PBS = Pharmaceutical Benefits Scheme

a Indicate clearly whether cost values are discounted costs (use of discounted costs is appropriate).

Table 3A.8.3 List of health states and disaggregated summary of cost impacts included in the economic evaluation

Health state in model

Resource use by health state (modelled)

Proposed medicine costs

Main comparator costs

Incremental cost

Total incremental cost (%)

Health state 1

Resource type 1

$x1

$y1

$x1 – $y1

z1

Resource type 2

$x2

$y2

$x2 – $y2

z2

[etc]

$x etc

$y etc

$x etc – $y etc

z etc

Total for health state 1

∑$x

∑$y

∑$x – ∑$y

∑z

Health state 2

Resource type 1

$xx1

$yy1

$xx1 – $yy1

zz1

Resource type k

$xxk

$yyk

$xxk – $yyk

zzk

Total for health state 2

∑$xx

∑$yy

∑$xx – ∑$yy

∑zz

[etc]

[etc]

[etc]

[etc]

[etc]

[etc]

Total

∑$x + ∑$xx etc

∑$y + ∑$yy etc

(∑$x + ∑$xx etc) – (∑$y + ∑$yy etc)

100

– = not required

Similarly, an example of a table showing outcomes disaggregated by health state is given in Table 3A.8.4.

Table 3A.8.4 List of health states and disaggregated summary of health outcomes included in the economic evaluation

Health state in model

Outcome for proposed medicine

Outcome for main comparator

Incremental outcome

Total incremental outcome (%)

Health state 1

x1

y1

x1 ­– y1

z1

Health state 2

x2

y2

x2 – y2

z2

[etc]

[x etc]

[y etc]

[x etc – y etc]

[z etc]

Total

x

y

x – y

100

Identify which health states and resources contribute to the greatest incremental differences between the proposed medicine and the comparator.

3A.8.4 Summary of base-case results

Summarise the base-case estimate of the incremental outcome(s), incremental cost and the cost-effectiveness ratio(s) obtained in the economic evaluation(s), including both CUA and CEA where relevant.

If the ICER is based on an outcome other than life-years or QALYs gained, compare the presented results with any previous PBAC decisions based on the same measure of outcome.