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Breaking up is hard to do: the economic impact of provisional funding contingent upon evidence development

Published online by Cambridge University Press:  08 August 2011

Duncan Mortimer ,
Jing Jing Li ,
Jennifer Watts  and
Anthony Harris
Duncan Mortimer*
Affiliation:
Associate Professor, Centre for Health Economics, Monash University, Australia
Jing Jing Li
Affiliation:
Senior Research Fellow, Centre for Health Economics, Monash University, Australia
Jennifer Watts
Affiliation:
Senior Lecturer, Centre for Health Economics, Monash University, Australia
Anthony Harris
Affiliation:
Professor and Deputy Director, Centre for Health Economics, Monash University, Australia
*
Correspondence to: Duncan Mortimer, Associate Professor, Centre for Health Economics, Monash University, Building 75, Victoria 3800, Australia. Email: duncan.mortimer@buseco.monash.edu.au
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Abstract

Funding contingent upon evidence development (FED) has recently been the subject of some considerable debate in the literature but relatively little has been made of its economic impact. We argue that FED has the potential to shorten the lag between innovation and access but may also (i) crowd-out more valuable interventions in situations in which there is a fixed dedicated budget; or (ii) lead to a de facto increase in the funding threshold and increased expenditure growth in situations in which the programme budget is open-ended. Although FED would typically entail periodic review of provisional or interim listings, it may prove difficult to withdraw funding even at cost/QALY ratios well in excess of current listing thresholds. Further consideration of the design and implementation of FED processes is therefore required to ensure that its introduction yields net benefits over existing processes.

Type
Articles
Information
Health Economics, Policy and Law , Volume 6 , Issue 4 , 06 September 2011 , pp. 509 - 527
Copyright
Copyright © Cambridge University Press 2011

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