Economic Evaluation in Health Care

Please do not reply in handwriting if possible, thank you very much!!

The answers word limit is 1,500 words.

The Victorian Department of Health and Human Services (DHHS) has allocated budget to addressing chronic homelessness in Melbourne. DHHS has defined chronic homelessness as an episode of homelessness exceeding 3 months. DHHS would like you to perform an economic evaluation of a model of supported accommodation with integrated mental health services with successful deployment in other major cities across Australia called Housing for Health (H4H).

DHHS understands that alcohol and other drug dependency (AOD) is very common among the chronically homeless population and that there is evidence that AOD reduces the effectiveness of supported accommodation interventions. DHHS would like to know whether they should also supplement H4H with naltrexone (NLX) an opioid antagonist pharmaceutical treatment that has shown to be effective at blocking the effects of heroin, other opioid drugs, and alcohol in large, double-blind, randomised, controlled clinical trials.

DHHS considers the appropriate comparator in this economic evaluation to be no supported accommodation (NSA) which includes utilisation of government and non-government services (e.g., charities) accessed by chronically homeless populations in the absence of supported accommodation.

1) Which costs would you include if you conducted your evaluation from the following perspectives:

a. Individual

b. Health Sector

c. Government

d. Societal

Hint: This question should be discussed in the context of the H4H and NLX. A general discussion of the types of costs relevant under each perspective demonstrates that you have read the text but does not demonstrate that you can practically apply your understanding.

(25 marks)

2) Why is a cost-minimisation analysis unlikely to be appropriate?

(5 marks)

3) Discuss how you would value benefits, and the pros and cons of doing so, if you were using a:

a) Cost-benefit analysis

b) Cost-effectiveness analysis

c) Cost-utility analysis

Hint: Again, this question should be discussed in the context of H4H and NLX.

(30 marks)

4) Based on your answers so far, form a well-defined research question, outlining and justifying all the fundamental concepts required for an economic evaluation.

Hint: Ideally your research question will be summarised in a single sentence. The accompanying paragraphs should provide justification and discussion.

(20 marks)

5) What are the limitations of an economic evaluation? What other issues should be considered before DHHS decides whether to provide funding?

(20 marks)

Please do not reply in handwriting if possible, thank you very much!!

The Answers word limit is 1,500 words.