9 August 2018

New approaches to improving cost thresholds for allocation of resources

Issues Surrounding the Estimation of the Opportunity Cost of Adopting a New Health Care Technology: Areas for Further Research
OHE August 2018
  • This research paper sets out a research agenda proposing new approaches in three areas to improve understanding of supply side opportunity cost thresholds for the efficient allocation of resources across different treatment alternatives for the English NHS.
    • 1. Are purchasers always displacing services when a new medical technology is adopted?
    • 2. If there is displacement, what services are displaced and where?
    • 3. What health outcomes reflect the health system priorities?
  • The paper considers the use of Data Envelopment Analysis (DEA) to estimate the relationship between outcomes and expenditures while considering the efficiency / inefficiency of the service providers.