Considerations of net present value in policy making regarding diagnostic and therapeutic technologies

An economic evaluation of the expansion of electronic case reporting in an academic healthcare setting

Objectives

Determine the economic cost or benefit of expanding electronic case reporting (eCR) for 29 reportable conditions beyond the initial eCR implementation for COVID-19 at an academic health center.

Materials and methods

The return on investment (ROI) framework was used to quantify the economic impact of the expansion of eCR from the perspective of an academic health system over a 5-year time horizon. Sensitivity analyses were performed to assess key factors such as personnel cost, inflation, and number of expanded conditions.

Results

The total implementation costs for the implementation year were estimated to be $5031.46. The 5-year ROI for the expansion of eCR for the 29 conditions is expected to be 142% (net present value of savings: $7166). Based on the annual ROI, estimates suggest that the savings from the expansion of eCR will cover implementation costs in approximately 4.8 years. All sensitivity analyses yielded a strong ROI for the expansion of eCR.

Discussion and conclusion

Our findings suggest a strong ROI for the expansion of eCR at UHealth, with the most significant cost savings observed implementing eCR for all reportable conditions. An early effort to ensure data quality is recommended to expedite the transition from parallel reporting to production to improve the ROI for healthcare organizations. This study demonstrates a positive ROI for the expansion of eCR to additional reportable conditions beyond COVID-19 in an academic health setting, such as UHealth. While this evaluation focuses on the 5-year time horizon, the potential benefit could extend further.

Cost-effectiveness of selective caries removal versus stepwise excavation for deep caries lesions

A multicenter, randomized controlled clinical trial evaluated the effectiveness of two treatments for deep caries lesions in permanent molars - selective caries removal (SCR) to soft dentin with restoration in a single visit, and stepwise excavation (SW) - regarding pulp vitality for a 5-year follow-up period. The present study aimed to determine the cost-effectiveness of these treatments. Treatments were conducted in two Brazilian cities (Brasília and Porto Alegre). At baseline, 299 permanent molars (233 patients) were treated and 229 teeth (174 patients) were evaluated after 5 years. The discounted cash flow method was adopted. The total cost of each treatment was calculated, and the failure cost (endodontic treatment + restoration) was added to the final cost, according to the 5-year failure rates of each therapy (20% for SCR and 44% for SW). A public health service unit composed of three dentists in 4-hour work shifts was used to calculate the monetary value of the treatments, assuming a total of 528 treatments/month. Considering the 229 teeth evaluated after 5 years (115 SCR and 114 SW), SCR provided savings of 43% (amalgam) and 41% (resin composite) per treatment, compared to SW. The SCR technique provides benefits for public finances (direct economy) and for public health services (increase in the number of treatments performed). Considering that maximizing profit and reducing costs are powerful motivating factors for adopting a certain treatment, this study provides data to better support the decision-making process, regarding the management of deep caries lesions in permanent molars.

New Medicare Technology Add-On Payment Could Be Used As A Market Support Mechanism To Accelerate Antibiotic Innovation

Despite growing antibiotic resistance, the clinical drug development pipeline for antibiotics has been sparse largely because of an unsustainable business model. We illustrate three models to accelerate antibiotic development, using Medicare new technology add-on payments as a market support mechanism. The first two models subsidize drug development for Medicare beneficiaries, and the third model applies a payment for every patient with a resistant infection to essentially create a funding pool. We found that the reimbursement required to sustain research and development would range from $637 to $121,365, depending on the payment model and the incidence of the resistant infection in question. With a $300 million public research subsidy, the payment for an antibiotic would drop to between $273 and $10,396 per course. Our market support model could increase the likelihood of attracting private investment for antibiotic development.

Levels of evidence supporting drug, device, and other recommendations in the American Heart Association/American College of Cardiology guidelines

Clinical guideline documents reflect the evidence supporting clinical practice, but few recommendations in cardiovascular guidelines are supported by evidence from randomized controlled trials (RCTs), the highest level of evidence. Incentives for generating evidence from RCTs differ by topic of guideline recommendation, and it is uncertain whether evidence supporting guideline recommendations differs based on the topic of the recommendation.

METHODS

We abstracted recommendation statements from current ACC/AHA guideline documents (2008-2019). Two reviewers independently characterized each statement into categories based on its primary topic: pharmaceutical, device, non-invasive or minimally invasive therapeutic procedure, surgery, diagnostic invasive procedure or non-invasive imaging, laboratory, care strategies, health services or policy, history/physical examination, lifestyle or counseling. We determined the number and proportion of recommendations in each category characterized as level of evidence (LOE) A (supported by multiple RCTs), B (supported by a single RCT or observational data), and C (supported by expert opinion or limited data).

RESULTS

Of 2934 recommendations from 29 clinical guideline documents, 784 (26.7%) were primarily about pharmaceuticals, 503 (17.1%) diagnostic invasive procedure or non-invasive imaging, 366 (12.5%) devices, 349 (11.9%) care strategies, 274 (9.3%) surgery, 216 (7.4%) therapeutic procedures, 162 (5.5%) lifestyle interventions or counseling, 160 (5.5%) health services, care delivery, or policy, 83 (2.8%) laboratory, and 37 (1.3%) elements of the history and physical. Across all recommendations, 257 (8.8%) were characterized as LOE A, with considerable variability by topic. 25.9% of lifestyle/counseling recommendations, 16.9% of lab recommendations, and 14.7% of drug recommendations were classified as LOE A, but <8% of recommendations in all other categories, including 5.5% of device recommendations, 6.0% of therapeutic procedure recommendations, 2.6% of surgery recommendations, and 5.0% of health services or policy recommendations.

CONCLUSION

Less than 10% of current ACC/AHA guideline recommendations are supported by high quality evidence from RCTs, with substantial variability by topic and multiple areas with very few recommendations supported by high-quality evidence. Development and implementation of inexpensive methods for generating a higher volume of RCT evidence to support clinical practice are needed, especially in areas where there are not strong incentives to conduct RCTs.

Integrated efficacy to effectiveness trials

Experts in clinical research, therapeutic development, and comparative effectiveness are continually frustrated in their attempts to fit the square peg of therapeutic development into the round hole of clinical trials. Trials can be optimized to provide signals in highly controlled experiments or to estimate an intervention's effect in poorly controlled real-world settings, but not both simultaneously. Selker and colleagues propose a continuum that creates a smooth transition from controlled experiments to real-world, real-time studies within a single mechanism.