Cost Effectiveness Analysis

An economic analysis comparing the relative cost and impact of different medical treatments with the aim of directing health care spending more efficiently.

The Role of Training Environment Care Intensity in US Physician Cost Consciousness

Mar. 1, 2015

Kira L. Ryskina, Scott D. Halpern, Nancy S. Minyanou, Susan D. Goold, Jon C. Tilburt

In Mayo Clinical Proceedings, Kira Ryskina and colleagues, including Scott Halpern, evaluate the impact of training environment on physicians’ levels of cost-consciousness. The authors analyzed results from the Physicians, Health Care Costs, and Society survey, administered to physicians across the country in 2012. Using responses from physicians for whom information was available about the care intensity of the hospitals where they did their residency, the authors evaluated the degree to which training environment influenced the views expressed in the survey. Training intensity was...

The Payer Perspective on Sovaldi

Oct. 2, 2014

Sovaldi, the $84,000 Hepatitis C drug developed by Gilead Sciences, has sparked controversy while marching toward worldwide sales set to exceed $11 billion in 2014. The blockbuster drug’s price is the main sticking point in the debate: critics argue that the cost is unsustainable and will cause payers to restrict treatment for the estimated 3.2 million patients in the United States who live with Hepatitis C, some of whom will develop liver complications.

Medicare Advantage to Whom?

Mar. 27, 2014

In a new NBER working paper, LDI Senior Fellows Mark Duggan, Amanda Starc and Boris Vabson ask the question, “Who Benefits when the Government Pays More? Pass-Through in the Medicare Advantage Program.”  Their answer is unequivocal:  mostly insurers (in the form of higher profits), not consumers (in the form of better coverage). They set the stage: