Viewpoint from which an economic evaluation is conducted e.g. healthcare payer, society, individual


Pharmacoeconomics is the scientific discipline that evaluates the clinical, economic and humanistic aspects of pharmaceutical products to provide health care decision makers, providers and patients with valuable information for optimal outcomes and the allocation of health care resources. Pharmacoeconomics incorporates health economics, clinical evaluations, risk analysis, technology assessment, and health-related quality of life, epidemiology, decision sciences and health services research

Probabilistic sensitivity analysis (PSA)

Type of sensitivity analysis in which probability distributions are specified for parameters (e.g., outcomes, costs, utilities) to capture the uncertainty around the true parameter value.  A Monte Carlo simulation is performed to generate a probability distribution of expected outcomes and costs

Probability distribution

Portrays the relative likelihood that a range of values is the true value of a treatment effect (or other outcome or result). This distribution may follow the form of a particular function, e.g., a normal, chi square, binomial, or Poisson distribution. An estimate of the most likely true value of the treatment effect is the value at the highest point of the distribution. The area under the curve between any two points along the range gives the probability that the true value of the treatment effect lies between those two points. Thus, a probability distribution can be used to determine an interval that has a designated probability (e.g. 95%) of including the true value of the treatment effect.

Productivity costs

The costs associated with lost or impaired ability to work because of morbidity or death.