Abstract

Cost-effectiveness analysis, routinely used in health care to inform funding decisions, can be extended to consider impact on health inequality. Distributional cost-effectiveness analysis (DCEA) incorporates socioeconomic differences in model parameters to capture how an intervention would affect both overall population health and differences in health between population groups. In DCEA, uncertainty analysis can consider the decision uncertainty around on both impacts (i.e., the probability that an intervention will increase overall health and the probability that it will reduce inequality). Using an illustrative example assessing smoking cessation interventions (2 active interventions and a “no-intervention” arm), we demonstrate how the uncertainty analysis could be conducted in DCEA to inform policy recommendations. We perform value of information (VOI) analysis and analysis of covariance (ANCOVA) to identify what additional evidence would add most value to the level of confidence in the DCEA results. The analyses were conducted for both national and local authority-level decisions to explore whether the conclusions about decision uncertainty based on the national-level estimates could inform local policy. For the comparisons between active interventions and “no intervention,” there was no uncertainty that providing the smoking cessation intervention would increase overall health but increase inequality. However, there was uncertainty in the direction of both impacts when comparing between the 2 active interventions. VOI and ANCOVA show that uncertainty in socioeconomic differences in intervention effectiveness and uptake contributes most to the uncertainty in the DCEA results. This suggests potential value of collecting additional evidence on intervention-related inequalities for this evaluation. We also found different levels of decision uncertainty between settings, implying that different types and levels of additional evidence are required for decisions in different localities.

Highlights

  • Cost-effectiveness analysis, routinely used in health care to inform funding decisions, can be extended to consider impact on health inequality

  • Health benefits are expressed as quality-adjusted life years (QALYs) and costs in pounds sterling (£, 2018 price year) with an annual discount rate of 3.5% applied to both benefits and costs, following the National Institute for Health and Care Excellence (NICE) guidance.[4]

  • We found no uncertainty surrounding the conclusion that provision of smoking cessation interventions, varenicline or e-cigarette, is likely to improve overall health and increase health inequality in England

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Summary

Introduction

Cost-effectiveness analysis, routinely used in health care to inform funding decisions, can be extended to consider impact on health inequality. VOI and ANCOVA show that uncertainty in socioeconomic differences in intervention effectiveness and uptake contributes most to the uncertainty in the DCEA results This suggests potential value of collecting additional evidence on intervention-related inequalities for this evaluation. Uncertainty analysis is an important component of decision analysis It reflects the uncertainty in the input parameters of the decision model and estimates what this means for the level of confidence in the study results and for decision uncertainty.[4,5] As with any evaluation, uncertainty in the model parameters of DCEA translates into uncertainty in the overall results and the decision on whether an intervention should be introduced.[6] The uncertainty in DCEA would imply the decision uncertainty based on an intervention’s impacts on both overall health and health inequality (i.e., the probability of correct conclusions that it will increase overall health and/or reduce inequality). Analysis of covariance (ANCOVA)[7] can be used to explore the correlation between variation in a model input and variation in the estimated intervention impacts on overall health and health inequality

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