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Cost-effective Care

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Defining Cost-Effectiveness - Smart Spending Saves

  • Cost-Effectiveness Analysis (CEA): Compares intervention costs & health outcomes (QALYs, life-years).
  • Goal: Maximize health per Rupee spent; not just cheapest.
  • Indian Context: Crucial for India: resource limits, high OOP spending.
  • Key Metrics:
    • ICER (Incremental Cost-Effectiveness Ratio): $ICER = \frac{(Cost_{new} - Cost_{std})}{(Effect_{new} - Effect_{std})}$. Extra cost per unit health gain.
    • QALY (Quality-Adjusted Life Year): 1 QALY = 1 year perfect health.
    • DALY (Disability-Adjusted Life Year): Years lost (death/disability).
  • WHO Thresholds (vs. GDP/capita):
    • Highly cost-effective: ICER < 1x GDP
    • Cost-effective: ICER 1x - 3x GDP
    • Not cost-effective: ICER > 3x GDP

⭐ CEA guides resource allocation for max population health, vital in LMICs like India.

Economic Evaluation Tools - Crunching Care Costs

ToolCost UnitOutcome UnitKey Metric / FormulaDecision Rule (Example)
CMA (Cost-Minimization)Monetary (₹)Assumed IdenticalLowest CostChoose cheapest if outcomes same
CEA (Cost-Effectiveness)Monetary (₹)Natural (e.g., LYG, cases cured)$ICER = \frac{\Delta Cost}{\Delta Effect}$ICER < WTP threshold
CUA (Cost-Utility)Monetary (₹)QALYs, DALYsCost per QALY/DALYCost/QALY < WTP (e.g., 1-3x GDP/capita)
CBA (Cost-Benefit)Monetary (₹)Monetary (₹)Net Benefit ($B-C$); $B/C Ratio$$B-C > \textbf{0}$; $B/C > \textbf{1}$

Prudent Prescribing & Testing - Lean Medicine Moves

  • Prescribing Principles for Value:
    • Generic substitution: Bioequivalent, offers significant ↓cost.
    • Rational Drug Use (RDU): Adhere to Standard Treatment Guidelines (STGs), National List of Essential Medicines (NLEM).
    • Combat polypharmacy: Conduct regular medication reviews, especially in elderly.
    • Antibiotic stewardship: Crucial for ↓resistance, ↓overall healthcare expenditure.
  • Lean Diagnostic Strategies:
    • "Choosing Wisely" India: Critically evaluate necessity of each test/procedure.
    • Stepwise, targeted investigations: Avoid broad "shotgun" approaches.
    • Utilize validated clinical decision rules (CDRs) for appropriate testing.
    • Discuss test implications, benefits, risks, and costs with patients.

⭐ The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) aims to provide quality generic medicines at affordable prices through Kendra outlets.

System-Level Strategies - Bigger Picture Benefits

  • National Health Policy (NHP): Aims for universal health coverage; ↑ public health expenditure to 2.5% of GDP by 2025; focus on preventive & promotive health.
  • Ayushman Bharat (PM-JAY): World's largest health assurance scheme; cashless access for secondary/tertiary care hospitalisation to over 12 crore vulnerable families. image
  • Telemedicine & Digital Health (e.g., eSanjeevani): Enhances healthcare access, especially in remote areas; reduces travel costs & time.
  • Electronic Health Records (EHRs): Improves care coordination, reduces redundant testing, supports clinical decision-making.
  • Preventive & Promotive Healthcare: Emphasis on screening programs (NCDs, cancers), immunisation, health & wellness centers.
  • Generic Drug Promotion: (e.g., Pradhan Mantri Bhartiya Janaushadhi Pariyojana - PMBJP) for affordable quality medicines.
  • Centralized Procurement: Bulk purchasing of drugs, vaccines, and medical supplies to reduce costs.

⭐ Ayushman Bharat PM-JAY provides a health cover of ₹5 lakhs per family per year for secondary and tertiary care hospitalization across public and empanelled private hospitals in India.

High‑Yield Points - ⚡ Biggest Takeaways

  • Generic drug substitution is paramount for affordable patient care.
  • Evidence-Based Medicine (EBM) minimizes unnecessary tests and treatments.
  • Adopt a stepwise approach to diagnosis: history, examination, then targeted investigations.
  • Preventive strategies and health education are crucial for long-term cost reduction.
  • Rational antibiotic stewardship combats resistance and controls expenditure.
  • Appropriate referrals to specialists prevent needless costs and delays.
  • Avoiding low-value care (e.g., routine screening without indication) is essential.

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