Pharmacoeconomics

Definition

Pharmacoeconomics is the study of the economic impact of drugs and therapies on healthcare systems and patient outcomes. It evaluates the cost-effectiveness, cost-benefit, and cost-utility of pharmaceutical products.

5 Must Know Facts For Your Next Test

1. Pharmacoeconomics helps in determining the most efficient allocation of resources in healthcare by comparing different drug therapies.
2. Key methods used in pharmacoeconomic evaluations include cost-minimization analysis, cost-effectiveness analysis, cost-utility analysis, and cost-benefit analysis.
3. Cost-effectiveness analysis compares the relative costs and outcomes of different interventions to determine the best option.
4. Health-related quality of life (HRQoL) is often measured in pharmacoeconomic studies using tools like Quality-Adjusted Life Years (QALYs).
5. The outcome of pharmacoeconomic studies can influence policy decisions, drug formulary choices, and clinical guidelines.

Review Questions

• What is the primary goal of pharmacoeconomics?
• Name two key methods used in pharmacoeconomic evaluations.
• How does pharmacoeconomics impact healthcare policy decisions?

Related terms

Drug Formulary: A list of prescription medications approved for use within a particular health system.

Cost-Benefit Analysis: An economic evaluation method that compares the monetary costs and benefits of an intervention.

Quality-Adjusted Life Year (QALY): A measure that combines life expectancy with quality of life to assess the value for money of a medical intervention.