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42      PART 1: An Overview of the Approach to and Organization of Critical Care


                   Long-term acute care (LTAC) facilities are playing an increasing   stents have a different cost-effectiveness ratio when compared to no PCI
                 role in the care of patients after critical illness.  Many of these facili-  as opposed to standard therapy with PCI and bare metal stent delivery.
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                 ties accept patients directly from the ICU, even before liberation from   Standard therapy should also represent the least expensive strategy
                 mechanical ventilation. Transferring patients to LTACs, as an example of   possible. Recognizing that there is variability in practice between physi-
                 a process of care, results in a reduced length of stay for the originating   cians, the ATS guidelines simplified matters by recommending that best
                 hospital, and may encourage the assignment of some cost savings as a   practice be the comparator of choice for cost-effectiveness studies.
                 result of that reduced length of stay. While it is possible that this pro-
                 cess of care is overall less expensive from the perspective of society, this
                 determination would need to include all costs of care incurred by the   DISCOUNTING
                 patient in the LTAC along with costs of care at the originating hospital.   Discounting costs over time is another important element in the
                 Without this accounting step, the cost of patient care is simply shifted   analysis. When we borrow money, we must pay it back with interest.
                                https://kat.cr/user/tahir99/
                 to the LTAC, rather than inherently reduced. Likewise, introducing an   This is because money is worth more now than it will be in the future.
                 intermediate care unit in the hospital may decrease ICU costs, but not   For example, $10 is more valuable now than $10 delivered at a rate of
                 have the same financial benefit from the standpoint of the hospital.  The   $1 per year for the next 10 years. It follows, to repay $10 over the next
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                 importance of perspective cannot be overstated.       10 years, we would be required to pay more than $1 per year. Worldwide
                                                                       economic growth is occurring at approximately 3% per year, and there-
                 COST ESTIMATES AND GUESSES                            fore the PCEHM and ATS recommend that all costs be discounted at a
                                                                       3% rate per annum.
                 Not all costs in a cost-effectiveness analysis are measured empirically.   Equally important, effects should also be discounted. Analogous to
                 One reason is that pricing for a treatment may not be established at the   the borrowed money example, the benefit of one person living 10 addi-
                 time of the analysis. In this circumstance, an educated “best guess” is   tional years is not equivalent to 10 persons each living one additional
                 made, with consideration of preliminary pricing set by company.  year. Failure to discount effects incurs the Keeler-Cretin procrastination
                   Perhaps surprisingly, estimates of costs may not even have a major   paradox, wherein we would forever favor health care programs that take
                 impact on the analysis. To investigate how sensitive a cost-effectiveness   place sometime in the future.  Effects are therefore discounted at 3%,
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                 ratio is to cost estimates, the completed model is exposed to a sensitivity   the same rate as costs.
                 analysis. As long as the estimated costs have little effect on the overall
                 conclusions, estimates are acceptable and the finding is considered robust.
                                                                       ROBUSTNESS AND SENSITIVITY ANALYSIS
                 COST STREAMS                                          When we perform an RCT, our primary conclusion is a statement of
                                                                       effect: Did the new therapy change the outcome of interest? Statistical
                 When the cost of therapy is computed, the duration of the costs attributed   testing for significance tells us which therapy arm is better, but not how
                 to the therapy must also be considered. For example, if our new therapy   much better. Consider the case of inhaled nitric oxide among neonates
                 allows more people to leave the ICU, but causes a higher incidence of   with respiratory failure, for which an RCT found a reduced chronic
                 renal failure requiring long-term dialysis, this needs to be included in the   lung disease (7% vs 20%; p = 0.02) and reduced use of ECMO (38%
                 accounting. In producing a survivor, one must also take responsibility for   vs 64%; p = 0.006).  This does not mean that exactly 26 patients avoid
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                 the cost of maintaining survival, which means following the cost streams   ECMO therapy for every 100 neonates treated. Rather, it tells us that
                 for an appropriate length of time. Furthermore, if chronic renal failure   our best estimate is that 26 patients are spared. If we in turn presume
                 leads to a lower quality of life, the new therapy will be doubly penalized,   a binomial distribution around the rate, we can generate confidence
                 both  for  the  cost  of  the  dialysis  and  for  the  reduced  quality-adjusted   intervals for the estimate. The confidence intervals might now tell us
                 survival. This concept is known as the cost of survivorship.  that the new therapy prevents between 18 and 34 ECMO runs per 100
                                                                       neonates treated, but cannot tell us where the true value falls within
                 COST MEASUREMENT                                      that range.
                                                                         On the other hand, in cost-effectiveness analysis, it is  a primary
                 For the costs we choose to measure, we must decide what represents   interest to describe the magnitude of effects and costs, yielding a cost-
                 true cost. True costs might be assumed to be those generated by formal   effectiveness ratio. To do this, we generate a base case and then perform
                 cost-accounting mechanisms. For example, the cost of a complete blood   a sensitivity analysis. The base case comes from our best point estimates
                 count includes the wage rate for and time spent by the employee who   of cost and effect. Thereafter, we vary our estimates across their range
                 drew the blood, the cost of the tube, and some tiny amortized fraction   of probabilities to determine the extent to which the cost-effectiveness
                 of the cost of the equipment upon which the test is run. In economics,   ratio varies. This exercise is known as a sensitivity analysis and can be
                 this approach is called  microcosting. However, detailed information   performed with multiple variables simultaneously. If, despite  varying
                 such as this is rarely available as part of a cost-effectiveness analysis.   several or all variables across their stochastic distributions, there is
                 Instead, a frequently used approach is to collect hospital charges and   minimal change in the final ratio, we have confidence in the robustness
                 adjust them by the hospital- or department-specific cost-to-charge   of our estimate.
                 ratio. Comparisons between department-specific cost-to-charge ratio-  The  sensitivity analysis can also be used to determine which model
                 adjusted charges and estimates generated from a formal cost-accounting   parameters need to be measured most accurately. For example, the cost-
                 system show good correlation when assessing patients in groups.    effectiveness ratio may be particularly sensitive to estimates of ICU costs,
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                 Agreement  is  worse  when  comparing individual  patients  and when   but relatively insensitive to expected costs of postdischarge resource use.
                 using hospital-specific ratios; however, cost-effectiveness analyses rely   In this situation, ICU costs need to be measured carefully, while postdis-
                 on average grouped estimates, and therefore department-specific esti-  charge resource use can be estimated with less rigor. Alternatively, a sensi-
                 mates are adequate for estimating hospital costs.     tivity analysis can be pinned to cost-effectiveness threshold (eg, $50,000)
                                                                       and then vary other parameters to show the ceiling of costs under which
                 DEFINING STANDARD CARE                                a given therapy would still be considered cost-effective. An example of
                                                                       this approach was used in the evaluation of lung-protective ventilation for
                 The comparison group in the analysis, standard therapy, must reflect   acute lung injury.  Even at an investment level of $9482 per patient with
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                 contemporary clinical practice to yield meaningful conclusions. For   acute lung injury, an intervention that increased adherence to lung-pro-
                 example, percutaneous coronary interventions (PCI) with drug-eluting   tective ventilation from 50% to 90% would be considered cost-effective. 34








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