Cost-minimization analysis

Cost-minimization analysis concerns a direct comparison only between treatments that produce identical outcomes. However, other than in the case of generic substitution,... 

There are four types of economic evaluation cost-minimization analysis, cost-effectiveness analysis, cost-utility analysis and cost-benefit analysis. The analytic framework chosen will depend upon the economic questions posed and the clinical evidence of effectiveness for the interventions (Gold et al, 1996 Dmmmondetal, 1997). 

Cost-minimization analysis compares the direct costs of two or more health-care interventions. This form of analysis is only useful if there is clear and reliable evidence... 

McCue MJ, Mazmanian PE, Hampton CL, Marks TK, Fisher EJ, Parpart F, Malloy WN, Fisk KJ. Cost-minimization analysis A follow-up study of a telemedicine program. Telemed J 1998 4 323-327. 

Cost-minimization analysis Dollars Assumed equal (not measured)... 

In a cost-benefit analysis, both costs and consequences are valued in dollars and the ratio of cost to benefit (or more commonly benefit to cost) is computed. Cost-benefit analysis has been used for many years to assess the value of investing in a number of different opportunities, including investments (or expenditure) for health care services. Cost-effectiveness analysis attempts to overcome (or avoid) the difficulties in cost-benefit analysis of valuing health outcomes in dollars by using nonmonetary outcomes such as life-years saved or percentage change in biomarkers like serum cholesterol levels. Cost-minimization analysis is a special case of cost-effectiveness analysis in which the outcomes are considered to be identical or clinically equivalent. In this case, the analysis defaults to selecting the lowest-cost treatment alternative. Cost-utility analysis is another special case of cost-effectiveness analysis in which the value of the outcome is adjusted for differences in patients preferences (utilities) for the outcomes. Cost-utility analyses are most appropriate when quality of life is a very important consideration in the therapeutic decision. 

When it is assumed that the effectiveness of two therapies is equal, the effectiveness part of the cost-effectiveness ratio can be dropped from the analysis. In this situation, only the cost differences between the two therapies are examined. Usually this includes the cost of the drug, costs of administration, the treatment of side effects or adverse reactions and the incidence and prevalence of the condition. For example, Fenton et al. (1982) compared the costs of home versus hospital treatment of psychiatric patients when the outcomes of each were considered not to differ in any respect except that one requires a hospital stay and the other does not. The cost-minimization analysis simply looked at the differences in costs of the two treatments. The result is, not unexpectedly, that hospitalization was 64% more expensive than home-based treatment. 

Cost-minimization analysis is a tool used to compare two or more treatment alternatives that are assumed to be equal in efficacy. It simply compares the direct and indirect costs of treatment alternatives in dollars and does not consider the outcomes of the treatments (because they are assumed to be the same). Examples could be to compare the costs of intravenous versus oral dosage forms of the same drug or hospital versus home administration of intravenous pain management. 

When determining which method of economic analysis she should use, she eliminated cost-minimization analysis because the treatment alternatives (service versus no service) will not result in equivalent outcomes. A cost-effectiveness analysis would not be appropriate because she is only interested in one particular program. A cost-utility analysis is also not appropriate because quality of life, while included in the project, is not the focus of her project. A cost-benefit analysis could be appropriate. A cost-benefit analysis requires that both the interventions and outcomes be valued in monetary units. She can determine the direct medical and/or nonmedical costs for each patient from data captured by her HMO. The HMO is very interested in costs, both those to implement the service and those it may save as a result. Cynthia decides that the most understandable analysis to present to the HMO is a cost-benefit analysis. 

The cost-effectiveness of four antiepileptic drugs used to treat newly diagnosed adult epilepsy has been studied by cost minimization analysis in 12 European countries (6). The analysis took account of each drug s adverse effects and tolerability profiles. Lamotrigine incurred higher costs than carbamazepine, phenytoin, and valproate, whose costs were similar. 

Each article was assessed for the type of evaluation and categorized (Table 1). Two factors were considered in determining the type of evaluation the presence of two or more alternatives, and the consideration of both input (costs) and outcomes. Evaluations that included two or more alternatives (i.e., concurrent control group, historical control, preintervention and postintervention design) were considered true analyses, whereas those that did not include a comparison were labeled descriptions. A description of the type of analysis was assigned to the evaluation and included the options of cost or outcome description, cost or outcome analysis, cost and outcome description, and true clinical economic evaluation. Those articles considered true clinical economic evaluations were subcategorized by type, options including cost-minimization analysis, cost-benefit analysis, cost-effectiveness analysis, and cost-utility analysis. 

Yes Cost analysis or outcome analysis True clinical economic analysis Subcategories Cost-minimization analysis Cost-benefit analysis Cost-effectiveness analysis Cost-utility analysis... 

Connelly, J.F. Adjusting dosage intervals of intermittent intravenous ranitidine according to creatinine clearance Cost-minimization analysis. Hosp. Pharm. 1994, 29, 992, 998, 1001. 

Cost minimization analysis (CMA)—The outcomes of two or more interventions being compared are taken to be identical. 

Key CBA, cost-benefit analysis CEA, cost-effectiveness analysis CMA, cost-minimization analysis COI, cost-of-illness evaluation CUA, cost-utility analysis QOL, quality of life QALY, quality-adjusted life-year. 

Cost-minimization analysis (CMA) involves the determination of the least costly alternative when comparing two or more treatment alternatives. With CMA, the alternatives must have an assumed or demonstrated equivalency in safety and efficacy (i.e., the two alternatives must be equivalent therapeutically). Once this equivalency in outcome is confirmed, the costs can be identified, measured, and compared in monetary units (dollars). 

AWP average wholesale price B/C ratio beneht-to-cost ratio CAP community-acquired pneumonia CBA cost-beneht analysis CCA cost-consequence analysis CEA cost-effectiveness analysis COI cost of illness CMA cost-minimization analysis CUA cost-utility analysis... 

Cox E. Cost-minimization analysis. In Grauer D, Lee J, Odom T, et al. (eds.) Pharmacoeconomics and Outcomes, 2d ed. Kansas City, MO, American College of Clinical Pharmacy, 2003 103-114. 

Hilleman DE, Mohiuddin SM, Lucas BD Jr, et al. Cost-minimization analysis of initial antihypertensive therapy in patients with mild-to-moderate essential diastoUc hypertension. CUn Ther 1994 16 88-102 discussion 187. 

The only recent trial that investigated albumin use on a large-scale basis was an observational study involving 15 academic medical centers in the United States. Based on previously published guidelines, 62% of albumin use was defined as inappropriate at a cost of 124,939. Presuming equal efficacy and toxicity (as available studies indicate) between crystalloid and colloid solutions, cost-minimization analysis clearly indicates the economic advantages of the crystalloids. 

Cost-minimization analysis compares costs for identical outcomes. Cost-consequence analysis establishes consequences and costs of a therapy but leaves the synthesis to the decision maker. Cost-effectiveness analysis uses natural medical units, such as life years gained, and costs them. Cost-utility analysis converts all effects into some common utility measure. Cost-benefit analysis converts everything, including medical outcomes, to a monetary equivalent. 

Cost-minimization analysis. A study in which therapies are standardized in terms of outcome and compared in terms of cost. For example, a new treatment might be shown to be no worse therapeutically than a standard but cheaper. 

Does it work Kirby and Peel introduce us to the concept of therapy economics the comparative analysis of alternative courses of therapy, which is taken to include treatment and drug regimes, in terms of their costs and consequences. The complex calculations include cost-benefit analysis cost-effectiveness analysis cost-minimization analysis the cost of illness, e.g. the annual cost of cardiovascular disease in the UK and quality-of-life measurements, the impact of alternative treatments on patient well-being and expectations. 

Bostman, O.M. Metallic or absorbable fracture fixation devices a cost minimization analysis. CUn. Orthop. Relat. Res. 329, 233-239 (1996)... 

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