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Statistical lessons from cost-effectiveness analyses of three community mental health evaluations

Jeffrey S. Hoch, PhD, Department of Epidemiology and Biostatistics, University of Western Ontario, UWO School of Medicine and Dentistry, Kresge Building, London, ON N6A 5C1, Canada, (519) 661-2111 x86270, jeffhoch@biostats.uwo.ca and Carolyn S. Dewa, MPH, PhD, Health Systems Research & Consulting Unit/Dept of Psychiatry, Centre for Addiction and Mental Health/University of Toronto, 250 College Street, Toronto, ON M5S 2S1, Canada.

This paper reviews the findings of three economic evaluations of prominent community mental health interventions: assertive community treatment (ACT), individual placement and support (IPS), and residential crisis care (RCC). Analytical challenges with the economic evaluations point to lessons about cost-effectiveness analysis for mental health care. The main messages are: 1) it is important to illustrate variation in estimates of cost-effectiveness and explore reasons for it; 2) frequently the “correct” outcome to use is not clear; and 3) the practical definition of what is cost-effective is elusive. These lessons motivate the need to use a method like the net benefit regression framework (NBRF). This framework allows for a regression-based cost-effectiveness analysis that is sensitive to the above concerns. The NBRF does not “solve” all of the problems, but instead provides a tool to address the issues. Researchers learning from the lessons suggested by the three cost-effectiveness analyses may provide policy makers with more useful economic evaluations.

Learning Objectives:

Keywords: Economic Analysis, Statistics

Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.

Statistical and Data Analysis Issues for Health Services Research

The 132nd Annual Meeting (November 6-10, 2004) of APHA