Price Indices and the Value of Innovation with Heterogenous Patients.
Cost-of-living
Healthcare cost
Heterogeneity
Innovation
Journal
Journal of health economics
ISSN: 1879-1646
Titre abrégé: J Health Econ
Pays: Netherlands
ID NLM: 8410622
Informations de publication
Date de publication:
07 2022
07 2022
Historique:
received:
28
09
2021
revised:
31
03
2022
accepted:
22
04
2022
pubmed:
14
5
2022
medline:
14
7
2022
entrez:
13
5
2022
Statut:
ppublish
Résumé
Many countries use uniform cost-effectiveness criteria to determine whether to adopt a new medical technology for the entire population. This approach assumes homogeneous preferences for expected health benefits and side effects. We examine whether new prescription drugs generate welfare gains when accounting for heterogeneous preferences by constructing quality-adjusted price indices in the market for colorectal cancer drug treatments. We find that while the efficacy gains from newer drugs do not justify high prices for the population as a whole, innovation improves the welfare of sicker, late-stage cancer patients. A uniform evaluation criterion would not permit these innovations despite welfare gains to a subpopulation.
Identifiants
pubmed: 35561551
pii: S0167-6296(22)00044-3
doi: 10.1016/j.jhealeco.2022.102625
pii:
doi:
Substances chimiques
Prescription Drugs
0
Types de publication
Journal Article
Langues
eng
Pagination
102625Informations de copyright
Copyright © 2022. Published by Elsevier B.V.