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Table 1 Cost effectiveness example calculation

From: Pharmacoeconomic analysis of prostaglandin and prostamide therapy for patients with glaucoma or ocular hypertension

IOP reduction

Direct costs

Cost effectiveness calculations

Decision based on cost minimization:

Equal (10 mm Hg)

Different ($500/yr vs. $400/yr)

Drug A: $500/yr; 10 mm Hg reduction = $50 per mm Hg reduction

Drug B: $400/yr; 10 mm Hg reduction = $40 per mm Hg reduction

Decision based on cost effectiveness:

Different (10 mm Hg vs. 5 mm Hg)

Different ($500/yr vs. $400/yr)

Drug C: $500/yr; 10 mm Hg reduction = $50 per mm Hg reduction

Drug D: $400/yr; 5 mm Hg reduction = $80 per mm Hg reduction

  1. IOP = intraocular pressure When the formulary inclusion decision process is based on cost minimization, Drug B is chosen over Drug A based on the difference in direct costs. When the decision is based on cost effectiveness, Drug C is chosen over Drug D in spite of the higher direct cost of Drug C, because Drug C is more cost effective.
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BMC Ophthalmology

ISSN: 1471-2415

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