Economic evaluation is the comparison of two or more alternative courses of action in terms of both their costs and consequences. 3S' healthcare economics practice specializes in providing clients with customized solutions designed to support healthcare economic objectives. The tools developed by 3S are tailored to the specific situation rather than simply "off the shelf" analytic tools.
3S healthcare economics team is highly experienced conducting the following analyses:
- Cost Minimization Analysis (CMA) -the effectiveness of the comparators in question must be proven to be equivalent. The 'cost-effective' comparator is simply the one which costs less (as it achieves the same outcome).
- Cost-Benefit Analysis (CBA) -costs and benefits are both valued in cash terms.
- Cost Effectiveness Analysis (CEA) measures outcomes in 'natural units', such as mmHg, symptom free days, life years gained.
- Cost-Utility Analysis (CUA) - measures outcomes in a composite metric of both length and quality of life, the Quality-adjusted life year (QALY). (Note there is some international variation in the precise definitions of each type of analysis).
- A final approach which is sometimes classed an economic evaluation, is a cost of illness study. This is not a true economic evaluation as it does not compare the costs and outcomes of alternative courses of action. Instead, it attempts to measure all the costs associated with a particular disease or condition. These will include direct costs (where money actually changes hands, e.g. health service use, patient co-payments and out of pocket expenses), indirect costs (the value of lost productivity from time off work due to illness), and intangible costs (the 'disvalue' to an individual of pain and suffering).
In addition, 3S maintains significant expertise with each of the following:
- Defining key cost drivers through early-phase health economic modeling
- Developing tools to inform pricing and stop/go decisions
- Quantifying costs and clinical benefits beyond the clinical trial setting
- Producing post-launch health economic tools, such as budget impact calculators, to encourage product uptake in clients' focus market