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HEALTH ECONOMICS, MST3:
BALANCE of EFFICIENCY & EQUITY
Louis Niessen MD Reg PH PhD
Chair of Health Economics, LSTM/JHSPH
Involvement Investment Cases
1. Member for Equity & Efficiency WHO WG Investment for Impact in the control
of neglected tropical diseases - under STAG NCDS, lead C Fitzpatrick, WHO.
TOR
2. Member Erasmus Group, BMGF: Estimating the socio-economic impact of
achieving the London declaration targets on neglected tropical diseases
3. COUNTDOWN Programme of implementation research to inform the effective
and sustainable scaling-up of integrated neglected tropical disease control
initiatives
Earlier: WHO-CHOICE; Child Survival (IMCI, GAPP); vaccines (GAVI)
Results: Poor & Malaria 18yr-cohort PMI-CDC; Poor & NCDs 24yr-Matlab,BD
Other networks: HTAi, GENI, IHEA, ISPOR, IEA,
Background Poverty And Disease
• Catastrophic health expenditure + loss of household income cause poverty
• Half of the poor are poor because of illness, increasing with sophistication of health care
• Also in advanced settings (EU, USA) health systems are regressive: burden of disease and
finances falls to low SES.
To do:
Universal health coverage is about choosing efficient package AND equity impact i.e.
willingness to subsidize others to provide protection against catastrophic expenditure
Background Health Economics Approach
2.5 Towards an investment case for NTDs under UHC
Three-step process:
1) categorize services into priority classes
2) expand coverage for high-priority services to everyone
3) ensure that disadvantaged groups are not left behind.
2.5.1 The investment case based on cost−effectiveness
2.5.2 Towards an investment case including equity
Background Health Economics Approach
1. WHO’s Guidance for Priority Setting in Health Care, or GPS-Health, offers equity criteria for
“priority classes” to be considered in addition to cost−effectiveness analysis.
2. Disease criteria: severity of disease, capacity to benefit and past health loss;
Specific groups: socio-economic status, area of living, gender, etc;
Non-health consequences: financial protection, economic productivity & care for others.
3. Presence of multi-criteria approaches (MCDA) to priority-setting in health, also emerging
within NTD world.
4. Will the NTD community use socioeconomic / non-health evidence to inform policy?
Equity: Conceptual Terms
Many vulnerable groups and definitions of vulnerable groups
Distributional concepts:
Horizontal and vertical equity (Socrates)
Inequalities (UK), disparities (USA) (J Tinbergen, J Rawls)
Fairness and willingness-to-subsidize (A Sen, D Kahneman)
Capability approach (overarching concept: A Sen)
Policy making & priorities setting in health
(A4R, Daniels)
Severity of disease
Average population health
Ease of implementation
Emergency situations
Burden of disease
Economic growth
Irresponsible behaviour
Vulnerable populations
Budget impact
Disease of the poor
Cost - effectiveness
Rational Priority Setting
Rank ordering of
interventions
1.
2.
3.
4.
5.
6.
7.
8.
Multi - criteria decision analysis
Burden of
disease
analysis
Cost -
effectiveness
analysis
Equity
analysis
Evidence -
based
medicine
Severity of disease
Average population health
Ease of implementation
Emergency situations
Burden of disease
Economic growth
Irresponsible behaviour
Vulnerable populations
Budget impact
Disease of the poor
Cost - effectiveness
Rational Priority Setting
Rank ordering of
interventions
1.
2.
3.
4.
5.
6.
7.
8.
Multi - criteria decision analysis
Burden of
disease
analysis
Cost -
effectiveness
analysis
Equity
analysis
Evidence -
based
medicine
Summary measure: health adjusted
life expectancy
Balancing Equity & Efficiency in National Policy
Ongoing multi-country studies
Brazil
China
Cuba
Uganda
Norway
Nepal
0
0.2
0.4
0.6
0.8
1
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1Equity
Efficiency
Value in Health. 2012 May;15(3):534-9.
Health Economics Research Theme In MDA Scale-up
Integrated
Complementary
Strategy Theme
ICST 1
ICST 2
Liberia GhanaCameroon
MDA Scale-up Themes (MST 1 – 3)
elimination
Country & context-specific setting of MDA
MST 1: Evidence synthesis
Paul Garner and Cochrane group
MST 2: Applied social science
Sally Theobald and Margaret Gyapong
MST 3: Health economics
Louis Niessen and Health Economcs Unit
scale-up in Nigeria
COUNTDOWN Questions And MST 3 Answers
Q1) What are effective, cost-effective, sustainable and acceptable current and
complementary strategies for scale-up?
MST3 Health economics: household impact through population surveys &, routine data, and
costing studies; can be combined with MST1-2
Q2) What generalizable factors influence the acceptance, effectiveness, efficiency, and equity
impact of scale-up within the health system?
MST3 Health economics: economic outcomes adjusted for other qualitative and quantitative
findings; can be combined MST2
Research uptake (EE2P): Evidence for priority setting for national programmes
based on equity and efficiency
Example: Historical And Future Population Scenarios NTDs
?
PC NTDs
ONCH
LF
SCH
STH
TRA
BOD projections
by age and sex
Counterfactual
London
Declaration
targets
Example: Socio-economic Impact Of Control Or Elimination Of Five Neglected
Tropical Diseases - Literature Review And Societal Costs (Lenk EJ. Erasmus ,ASTMH, 2014)
Aim: Economic impact of meeting the targets for the five diseases eligible for MDA: lymphatic filariasis, onchocerciasis,
schistosomiasis, soil-transmitted helminthiasis, and trachoma.
Methods
A systematic literature review to identify empirical costs related NTDs, including out of pocket payments (OPP), productivity
loss, and impoverishment.
Cost estimates per person are combined with population projections suffering from clinical manifestations per NTD, country,
and year, for the periods 2011-2020 and 2021- 2030, comparing to business-as-usual scenarios.
Results
Averted burden: productivity loss associated for about 3% for infestation & mild symptoms, about 15% for more severe
manifestations (lymphedema and hydrocele), and up to 38% -79% for severe vision loss & blindness.
Income loss averted reaching the LONDON goals may amount to US$240 billion for 2011-2020
and US$390 billion for 2021-2030, excluding OPPs & productivity loss due to deaths.
Soil-transmitted helminthiasis accounted for approximately half of this amount.
Intended Impact And Pathways To Achievement
IMPACT:
Reduced morbidity, mortality, and poverty
associated with NTDs through increased
knowledge and evidence for cost effective scale-
up and sustainable control and elimination of
NTDs as a public health problem
Community
Global
Regional
National
District
IMPACT: Value-for-Money in COUNTDOWN
Value-for-money
= cost-effectiveness selected interventions & equity gains in access, coverage, finance
Expected outcomes
1. Increased coverage / access among target populations:
2. Enhanced equity by socio-economic group, gender, geography, through reduced exposure
reduction, out-of-pockets expenditure, and ..
3. Affordable scale-up budget impact estimates for national investments and other financing
sources
Expected contributions: national & international policy
1. Evidence for prioritization most attractive – value-for-money- options in NTD control
2. Evidence and advocacy to include equity criteria in NTD decisions

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COUNTDOWN Louis Niessen - Launch 2015

  • 1. HEALTH ECONOMICS, MST3: BALANCE of EFFICIENCY & EQUITY Louis Niessen MD Reg PH PhD Chair of Health Economics, LSTM/JHSPH
  • 2. Involvement Investment Cases 1. Member for Equity & Efficiency WHO WG Investment for Impact in the control of neglected tropical diseases - under STAG NCDS, lead C Fitzpatrick, WHO. TOR 2. Member Erasmus Group, BMGF: Estimating the socio-economic impact of achieving the London declaration targets on neglected tropical diseases 3. COUNTDOWN Programme of implementation research to inform the effective and sustainable scaling-up of integrated neglected tropical disease control initiatives Earlier: WHO-CHOICE; Child Survival (IMCI, GAPP); vaccines (GAVI) Results: Poor & Malaria 18yr-cohort PMI-CDC; Poor & NCDs 24yr-Matlab,BD Other networks: HTAi, GENI, IHEA, ISPOR, IEA,
  • 3. Background Poverty And Disease • Catastrophic health expenditure + loss of household income cause poverty • Half of the poor are poor because of illness, increasing with sophistication of health care • Also in advanced settings (EU, USA) health systems are regressive: burden of disease and finances falls to low SES. To do: Universal health coverage is about choosing efficient package AND equity impact i.e. willingness to subsidize others to provide protection against catastrophic expenditure
  • 4. Background Health Economics Approach 2.5 Towards an investment case for NTDs under UHC Three-step process: 1) categorize services into priority classes 2) expand coverage for high-priority services to everyone 3) ensure that disadvantaged groups are not left behind. 2.5.1 The investment case based on cost−effectiveness 2.5.2 Towards an investment case including equity
  • 5. Background Health Economics Approach 1. WHO’s Guidance for Priority Setting in Health Care, or GPS-Health, offers equity criteria for “priority classes” to be considered in addition to cost−effectiveness analysis. 2. Disease criteria: severity of disease, capacity to benefit and past health loss; Specific groups: socio-economic status, area of living, gender, etc; Non-health consequences: financial protection, economic productivity & care for others. 3. Presence of multi-criteria approaches (MCDA) to priority-setting in health, also emerging within NTD world. 4. Will the NTD community use socioeconomic / non-health evidence to inform policy?
  • 6. Equity: Conceptual Terms Many vulnerable groups and definitions of vulnerable groups Distributional concepts: Horizontal and vertical equity (Socrates) Inequalities (UK), disparities (USA) (J Tinbergen, J Rawls) Fairness and willingness-to-subsidize (A Sen, D Kahneman) Capability approach (overarching concept: A Sen)
  • 7. Policy making & priorities setting in health (A4R, Daniels) Severity of disease Average population health Ease of implementation Emergency situations Burden of disease Economic growth Irresponsible behaviour Vulnerable populations Budget impact Disease of the poor Cost - effectiveness Rational Priority Setting Rank ordering of interventions 1. 2. 3. 4. 5. 6. 7. 8. Multi - criteria decision analysis Burden of disease analysis Cost - effectiveness analysis Equity analysis Evidence - based medicine Severity of disease Average population health Ease of implementation Emergency situations Burden of disease Economic growth Irresponsible behaviour Vulnerable populations Budget impact Disease of the poor Cost - effectiveness Rational Priority Setting Rank ordering of interventions 1. 2. 3. 4. 5. 6. 7. 8. Multi - criteria decision analysis Burden of disease analysis Cost - effectiveness analysis Equity analysis Evidence - based medicine Summary measure: health adjusted life expectancy
  • 8. Balancing Equity & Efficiency in National Policy Ongoing multi-country studies Brazil China Cuba Uganda Norway Nepal 0 0.2 0.4 0.6 0.8 1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1Equity Efficiency Value in Health. 2012 May;15(3):534-9.
  • 9. Health Economics Research Theme In MDA Scale-up Integrated Complementary Strategy Theme ICST 1 ICST 2 Liberia GhanaCameroon MDA Scale-up Themes (MST 1 – 3) elimination Country & context-specific setting of MDA MST 1: Evidence synthesis Paul Garner and Cochrane group MST 2: Applied social science Sally Theobald and Margaret Gyapong MST 3: Health economics Louis Niessen and Health Economcs Unit scale-up in Nigeria
  • 10. COUNTDOWN Questions And MST 3 Answers Q1) What are effective, cost-effective, sustainable and acceptable current and complementary strategies for scale-up? MST3 Health economics: household impact through population surveys &, routine data, and costing studies; can be combined with MST1-2 Q2) What generalizable factors influence the acceptance, effectiveness, efficiency, and equity impact of scale-up within the health system? MST3 Health economics: economic outcomes adjusted for other qualitative and quantitative findings; can be combined MST2 Research uptake (EE2P): Evidence for priority setting for national programmes based on equity and efficiency
  • 11. Example: Historical And Future Population Scenarios NTDs ? PC NTDs ONCH LF SCH STH TRA BOD projections by age and sex Counterfactual London Declaration targets
  • 12. Example: Socio-economic Impact Of Control Or Elimination Of Five Neglected Tropical Diseases - Literature Review And Societal Costs (Lenk EJ. Erasmus ,ASTMH, 2014) Aim: Economic impact of meeting the targets for the five diseases eligible for MDA: lymphatic filariasis, onchocerciasis, schistosomiasis, soil-transmitted helminthiasis, and trachoma. Methods A systematic literature review to identify empirical costs related NTDs, including out of pocket payments (OPP), productivity loss, and impoverishment. Cost estimates per person are combined with population projections suffering from clinical manifestations per NTD, country, and year, for the periods 2011-2020 and 2021- 2030, comparing to business-as-usual scenarios. Results Averted burden: productivity loss associated for about 3% for infestation & mild symptoms, about 15% for more severe manifestations (lymphedema and hydrocele), and up to 38% -79% for severe vision loss & blindness. Income loss averted reaching the LONDON goals may amount to US$240 billion for 2011-2020 and US$390 billion for 2021-2030, excluding OPPs & productivity loss due to deaths. Soil-transmitted helminthiasis accounted for approximately half of this amount.
  • 13. Intended Impact And Pathways To Achievement IMPACT: Reduced morbidity, mortality, and poverty associated with NTDs through increased knowledge and evidence for cost effective scale- up and sustainable control and elimination of NTDs as a public health problem Community Global Regional National District
  • 14. IMPACT: Value-for-Money in COUNTDOWN Value-for-money = cost-effectiveness selected interventions & equity gains in access, coverage, finance Expected outcomes 1. Increased coverage / access among target populations: 2. Enhanced equity by socio-economic group, gender, geography, through reduced exposure reduction, out-of-pockets expenditure, and .. 3. Affordable scale-up budget impact estimates for national investments and other financing sources Expected contributions: national & international policy 1. Evidence for prioritization most attractive – value-for-money- options in NTD control 2. Evidence and advocacy to include equity criteria in NTD decisions