Mean cost and cost-effectiveness ratios with censored data: a tutorial and SAS® macros

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Censoring is an unignorable issue when analyzing survival data and/or medical cost data. Medical costs may be viewed as a type of survival data−in that they accrue over time until an endpoint such as death−or a ‘mark’ variable. Since Lin et al. (1997) and Mushlin et al. (1998) published landmark papers on this topic, censored cost data have been extensively studied. In this tutorial, we explain how to estimate mean cost and cost-effectiveness ratios, along with three examples under two different data scenarios: when only total cost data (so one observation per person) or longitudinal data (or cost history) are available. We also provide an updated literature review. SAS codes in the supplement could be useful to practitioners and data analysts.

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Non-negative continuous outcomes with a substantial number of zero values and incomplete longitudinal follow-up are quite common in medical costs data. It is thus critical to incorporate the potential dependence of survival status and longitudinal medical costs in joint modeling, where censorship is death-related. Despite the wide use of conventional two-part joint models (CTJMs) to capture zero-inflation, they are limited to conditional interpretations of the regression coefficients in the model’s continuous part. In this paper, we propose a marginalized two-part joint model (MTJM) to jointly analyze semi-continuous longitudinal costs data and survival data. We compare it to the conventional two-part joint model (CTJM) for handling marginal inferences about covariate effects on average costs. We conducted a series of simulation studies to evaluate the superior performance of the proposed MTJM over the CTJM. To illustrate the applicability of the MTJM, we applied the model to a set of real electronic health record (EHR) data recently collected in Iran. We found that the MTJM yielded a smaller standard error, root-mean-square error of estimates, and AIC value, with unbiased parameter estimates. With this MTJM, we identified a significant positive correlation between costs and survival, which was consistent with the simulation results.

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