Which method would you use to evaluate a new medication based only on the cost? Cost effectiveness analysis, cost utility analysis or a cost benefit analysis and why? How can you perform an economic review?
Which method would you use to evaluate a new medication based only on the cost? Cost effectiveness analysis, cost utility analysis or a cost benefit analysis and why? How can you perform an economic review?
Chapter11: The Market For Pharmaceuticals
Section: Chapter Questions
Problem 1QAP
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Which method would you use to evaluate a new medication based only on the cost? Cost effectiveness analysis, cost utility analysis or a cost benefit analysis and why? How can you perform an economic review?
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Step 1
Cost-based analysis:
Cost-based analyses are done by the systematical derivation and analysis of net costs by computing the total cost of running the program and the profit earned from it. Total costs include fixed costs, direct costs, indirect costs, and also sunk costs.
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