HEOR Student-led Seminars 2021-2022
The NOAHE Health Economics and Outcomes Research Student Seminar Series seeks to promote discourse related to health economics research, allowing participants to gain insight and consideration across a range of university departments, while encouraging collaboration and networking opportunities.
Venue: Online only.
Time: All seminars run from 12:00 pm - 1:00 pm MT unless otherwise indicated.
After registering, you will receive a confirmation email containing information about joining the meeting.
- November 24, 2021 – University of Alberta - Click here for more information and registration
- January 26, 2022 – University of Calgary - Click here for more information and registration
- March 23, 2022 – University of Alberta - Click here for more information and registration
Upcoming Session Information
*Individual session information will be updated as available*
Topic: "The risk-based price: incorporating uncertainty and risk attitudes in health technology pricing"
Interpretation of cost-effectiveness analysis often relies on value-based decision rules, where results are compared to a cost-effectiveness threshold value to determine if technologies are a good value for money and should be adopted. This decision rule assumes that decision-makers are indifferent between interventions with the same expected value and different underlying uncertainty. Such indifference is unlikely to hold in practice.
We propose the risk-based price and decision rules to address this limitation. Risk is characterized as the independent per-patient expected value of perfect information (iEVPI), a modification of standard EVPI. The iEVPI estimates the expected value of net benefit losses caused by uncertainty related to a technology independent of the uncertainty related to alternative treatments. ‘Payer risk tolerance’ is the maximum per-patient risk of making wrong decisions that payers are willing to accept in monetary terms. The risk-based price is the price at which the iEVPI is equal to the payer risk tolerance. The risk-based decision rules are as follows: (i) a technology is acceptable for adoption if the incremental net benefit of the technology is greater than or equal to zero, and if the iEVPI is less than or equal to the payer risk tolerance, and (ii) the optimal technology has the greatest ENB at the lower of the sponsor submitted or risk-based price at a given CET value.
We demonstrate both risk-adverse and risk-neutral payers prefer risk-based pricing outcomes. Risk-based pricing improves incentives for evidence development and could increase health system net benefits under constrained resources.
Presenter: Ms. Erin Kirwin
Facilitator: Aidan Neill
Facilitator: Mark Hofmeister
Facilitator: Aidan Neill