The influence of time horizon on results of cost-effectiveness analyses

Date: May 23, 2017
Journal: Expert Review of Pharmacoeconomics & Outcomes Research
Citation: Kim DD, Wilkinson CL, Pope EF, Chambers JD, Cohen JT, Neumann PJ. The influence of time horizon on results of cost-effectiveness analyses. Expert Review of Pharmacoeconomics & Outcomes Research 2017;17(6):615–23.

ABSTRACT

Background

Debates persist on the appropriate time horizon from a payer’s perspective and how the time horizon in cost-effectiveness analysis (CEA) influences the value assessment.

Methods

We systematically reviewed the Tufts Medical Center CEA Registry and identified US-based studies that used a payer perspective from 2005–2014. We classified the identified CEAs as short-term (time horizon ≤ 5 years) and long-term (> 5 years), and examined associations between study characteristics and the specified time horizon. We also developed case studies with selected interventions to further explore the relationship between time horizon and projected costs, benefits, and incremental cost-effectiveness ratios (ICER).

Results

Among 782 identified studies that met our inclusion criteria, 552 studies (71%) utilized a long-term time horizon while 198 studies (25%) used a short-term horizon. Among studies that employed multiple time horizons, the extension of the time horizon yielded more favorable ICERs in 19 cases and less favorable ICERs in 4 cases. Case studies showed the use of a longer time horizon also yielded more favorable ICERs.

Conclusion

The assumed time horizon in CEAs can substantially influence the value assessment of medical interventions. To capture all consequences, we encourage the use of time horizons that extend sufficiently into the future.

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