Using propensity scores to estimate the cost-effectiveness of medical therapies

Stat Med. 2006 May 15;25(9):1561-76. doi: 10.1002/sim.2267.

Abstract

The cost-effectiveness ratio is a popular statistic that is used by policy makers to decide which programs are cost-effective in the public health sector. Recently, the net monetary benefit has been proposed as an alternative statistical summary measure to overcome the limitations associated with the cost-effectiveness ratio. Research on using the net monetary benefit to assess the cost-effectiveness of therapies in non-randomized studies has yet to be done. Propensity scores are useful in estimating adjusted effectiveness of programs that have non-randomized or quasi-experimental designs. This article introduces the use of propensity score adjustment in cost-effectiveness analyses to estimate net monetary benefits for non-randomized studies. The uncertainty associated with the net monetary benefit estimate is evaluated using cost-effectiveness acceptability curves. Our method is illustrated by applying it to SEER-Medicare data for muscle invasive bladder cancer to determine the most cost-effective treatment protocol.

Publication types

  • Research Support, N.I.H., Extramural

MeSH terms

  • Aged
  • Aged, 80 and over
  • Cost-Benefit Analysis / methods*
  • Cystectomy / economics
  • Cystectomy / standards
  • Data Interpretation, Statistical*
  • Female
  • Health Care Costs*
  • Humans
  • Male
  • Medicaid
  • Models, Economic*
  • SEER Program
  • Urinary Bladder Neoplasms / economics
  • Urinary Bladder Neoplasms / surgery