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      Should Countries Set an Explicit Health Benefits Package? The Case of the English National Health Service

      research-article
      , MA 1 , * , , PhD 2
      Value in Health
      Elsevier
      cost-effectiveness analysis, health benefits package, universal health coverage

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          Abstract

          Background

          A fundamental debate in the transition towards universal health coverage concerns whether to establish an explicit health benefits package to which all citizens are entitled, and the level of detail in which to specify that package. At one extreme, the treatments to be funded, and the circumstances in which patients qualify for the treatment, might be specified in great detail, and be entirely mandatory. This would make clinicians little more than automata, carrying out prescribed practice. At the other extreme, priorities may be expressed in very broad terms, with no compulsion or other incentives to encourage adherence.

          Objectives

          The paper examines the arguments for and against setting an explicit benefits package, and discusses the circumstances in which increased detail in specification are most appropriate.

          Methods

          The English National Health Service is used as a case study, based on institutional history, official documents and research literature.

          Results

          Although the English NHS does not explicitly specify a health benefits package, it is in some respects establishing an ‘intelligent’ package, based on instruments such as an essential medicines list, clinical guidelines, provider payment and performance reporting, which acknowledges gaps in evidence and variations in local resource constraints.

          Conclusions

          Further moves towards a more explicit specification are likely to yield substantial benefits in most health systems. Considerations in determining the ‘hardness’ of benefits package specification might include the quality of information about the costs and benefits of treatments, the heterogeneity of patient needs and preferences, the financing regime in place, and the nature of supply side constraints.

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          Most cited references18

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          Defining a Health Benefits Package: What Are the Necessary Processes?

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            Acknowledging patient heterogeneity in economic evaluation : a systematic literature review.

            Patient heterogeneity is the part of variability that can be explained by certain patient characteristics (e.g. age, disease stage). Population reimbursement decisions that acknowledge patient heterogeneity could potentially save money and increase population health. To date, however, economic evaluations pay only limited attention to patient heterogeneity. The objective of the present paper is to provide a comprehensive overview of the current knowledge regarding patient heterogeneity within economic evaluation of healthcare programmes. A systematic literature review was performed to identify methodological papers on the topic of patient heterogeneity in economic evaluation. Data were obtained using a keyword search of the PubMed database and manual searches. Handbooks were also included. Relevant data were extracted regarding potential sources of patient heterogeneity, in which of the input parameters of an economic evaluation these occur, methods to acknowledge patient heterogeneity and specific concerns associated with this acknowledgement. A total of 20 articles and five handbooks were included. The relevant sources of patient heterogeneity (demographics, preferences and clinical characteristics) and the input parameters where they occurred (baseline risk, treatment effect, health state utility and resource utilization) were combined in a framework. Methods were derived for the design, analysis and presentation phases of an economic evaluation. Concerns related mainly to the danger of false-positive results and equity issues. By systematically reviewing current knowledge regarding patient heterogeneity within economic evaluations of healthcare programmes, we provide guidance for future economic evaluations. Guidance is provided on which sources of patient heterogeneity to consider, how to acknowledge them in economic evaluation and potential concerns. The improved acknowledgement of patient heterogeneity in future economic evaluations may well improve the efficiency of healthcare.
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              Incorporating option values into the economic evaluation of health care technologies.

              Despite uncertainty being intrinsic to economic evaluation of health care, existing techniques for handling uncertainty remain underdeveloped compared to the formal techniques commonly applied in the business sector. This paper develops an alternative approach to handling uncertainty in economic evaluation based on 'option-pricing' techniques. The presence of uncertainty and the degree of irreversibility of a decision make it clear that some flexibility in the timing of a decision is often a desirable characteristic with an economic value. We demonstrate how option-pricing techniques can be applied to the decision rules for economic evaluation in health care. The key determinants of an option value are the presence and type of uncertainty; the ability to defer a decision; and the irreversibility of the decision. The relative significance of each of these for a particular economic evaluation will depend on the particular characteristics of the technology under consideration.
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                Author and article information

                Contributors
                Journal
                Value Health
                Value Health
                Value in Health
                Elsevier
                1098-3015
                1524-4733
                1 January 2017
                January 2017
                : 20
                : 1
                : 60-66
                Affiliations
                [1 ]Imperial College Business School, London, UK
                [2 ]Institute for Global Health Innovation, Imperial College, London, UK
                Author notes
                [* ] Address correspondence to: Peter C. Smith, Imperial College Business School, Exhibition Road, SW7 2AZ, London, UK.Imperial College Business School, Exhibition Road, SW7 2AZLondon peter.smith@ 123456imperial.ac.uk
                Article
                S1098-3015(16)00010-3
                10.1016/j.jval.2016.01.004
                5338874
                28212971
                f4a8ca29-aef6-4d85-b9c4-1e7061551f9b
                © 2016 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Elsevier Inc. All rights reserved.

                This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

                History
                Categories
                Article

                Economics of health & social care
                cost-effectiveness analysis,health benefits package,universal health coverage

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