Quantifying unique sources of value
Many healthcare innovations provide value beyond what traditional measures of cost-effectiveness capture. PHE is a leader in measuring unique components of the value of health technologies and communicating this value to stakeholders.
This research on the value of innovation has been instrumental in shaping policymaker and payer opinions on the benefits of treatments for cancer, HIV, cardiovascular disease, and other diseases. PHE work on quantifying novel components of value has been published in leading health policy outlets such as Health Affairs, Harvard Business Review, and the American Journal of Managed Care.
Experts at PHE have developed and refined value concepts in the healthcare setting, including the following:
- Social value includes the economic value of medical innovations’ health, productivity, and cost impacts to generate a comprehensive estimate of the value an innovation provides to society overall.
- Insurance value captures the value healthy individuals place on protection from or treatment for a disease that they may develop in the future. For example, access to a treatment for cancer provides value to healthy individuals similar to an insurance plan. By knowing they can receive treatment, healthy individuals benefit even if they never ultimately get the disease.
- Option value represents the value that a medical innovation provides by preserving life and functional status, giving patients the option to benefit from future innovations or even cures. In disease areas with rapid drug innovation like cancer, the benefits of extending survival by 1 year are compounded by the introduction of new therapies that further extend life.
- Value of hope is a novel component of value stemming from research conducted by PHE on patient preferences for long-term survival. Value of hope reflects the finding that some patients may place greater value on treatments with a small chance of long-term survival over treatments that offer a similar, but certain, average survival outcome.
This research on the value of cancer care has been published in multiple special issues of the journals Health Affairs and the American Journal of Managed Care.
PHE’s approach to quantifying value is customized to each situation and may involve use of any of our methodological capabilities for analysis and communication.
- Chandra A, et al. Robot-assisted surgery for kidney cancer increased access to a procedure that can reduce mortality and renal failure. Health Aff (Millwood). 2015.
- Goldman DP, et al. The value of diagnostic testing in personalized medicine. Forum Health Econ Policy. 2013.
- Jena AB, et al. The wider public health value of HCV treatment accrued by liver transplant recipients. Am J Manag Care. 2016.
- Lakdawalla DN, et al. How cancer patients value hope and the implications for cost-effectiveness assessments of high-cost cancer therapies. Health Aff (Millwood). 2012.
- MacEwan JP, et al. The value of survival gains in pancreatic cancer from novel treatment regimens. J Manag Care Spec Pharm. 2017.
- Philipson TJ, et al. The social value of childhood vaccination in the United States. Am J Manag Care. 2017.
- Romley JA, et al. Survey results show that adults are willing to pay higher insurance premiums for generous coverage of specialty drugs. Health Aff (Millwood). 2012.
- Shafrin J, et al. Estimating the value of new technologies that provide more accurate drug adherence information to providers to their patients with schizophrenia. J Manag Care Spec Pharm. 2016.
- Shih T, et al. Reconsidering the economic value of multiple sclerosis therapies. Am J Manag Care. 2016.
- Thornton Snider J, et al. The option value of innovative treatments for non-small cell lung cancer and renal cell carcinoma. Am J Manag Care. 2017.