Evaluating Cost-effectiveness using decision trees: The HPV case

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lecturenotesdesiciontree_1.docx

What Is a Decision Tree?

· One of the most widely used decision-analytic models for evaluating health interventions

· Represents the possible outcomes for an individual following an intervention using a series of pathways

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Example: Antismoking Campaign

"Tips From Former Smokers" (TIPS)

· Launched in 2012 by the Centers for Disease Control (CDC)

· The first federally funded national mass media antismoking campaign

· Resulted in an increase of 12% in population quit attempts

· From 31.1% of current smokers to 34.8%

· An increase of 1.6 million quits and 100,000 sustained quits

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Example: Antismoking Campaign—CDC Perspective

The CDC evaluated cost per QALY saved and cost per life year saved from the CDC budget perspective.

· $47,932,809 campaign budget

· $6.7 million for creative development

· $38 million for advertising purchases

· $3.1 million for evaluation

· $1.0961 for each of 43.7 million adult smokers

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Example: Antismoking Campaign—CDC Perspective (cont.)

· Primary effect size: 12% increase in quits; measured 6.1% sustained quit rate at 6 months

· Modeled prevented premature deaths and discounted (3%) life years and QALYs gained by quitting within age and sex groups, using outside data

· Estimated average of 1.79 QALYs per sustained quit

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Decision Tree Elements: Nodes

· Decision node (square node at start of tree): Represents a decision between two or more competing intervention alternatives

· Chance nodes (circular nodes following the decision node): Connect a series of different pathways that represent the range of possible outcomes to the root of the tree

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Decision Tree Elements: Probabilities

· Branch probabilities: Probabilities assigned to each branch coming out of a chance node, based on their likelihood of occurring

· Conditional probabilities: Probabilities emanating from each subsequent new chance node (from left to right), conditioned on having experienced the events earlier in that particular pathway

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Decision Tree Elements: Pathways

Once the entire tree is built, there are a set number of pathways through which one can progress through the tree to the final outcome.

· Pathway probabilities: Probability of completing a specific pathway, determined by multiplying initial branch probability by all of the subsequent conditional probabilities

· Pathway costs: Cost associated with each pathway, calculated by summing the cost of all of the events occurring along the pathway

· Pathway effects: Measure of health effect associated with each pathway, usually a measure of the QALYs for that specific pathway

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Calculating Expected Values From Decision Trees

To estimate the expected cost and effect of each decision:

· Multiply probability of each pathway by the cost and effect for that pathway.

· Sum values for each decision.

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Decision Tree Summary: Table

Intervention

Population

QALYs per Person

Incremental QALYs

Cost per Person

Incremental Cost

ICER

No Campaign

43,729,007

20.034

--

$0.00

--

Media Campaign

43,729,007

20.038

Individual

0.004

$1.0961

$1.0961

$274

Population

174,916

$47,931,000

$274

· Incremental QALYs: 20.038 − 20.034 = 0.004

· Scaled to population: 0.004 × 43,729,007 = 174,916

· Incremental cost: $1.0961 − $0 = $1.0961

· Scaled to population: $1.0961 × 43,729,007 = $47,931,000

· ICER: $1.0961/0.004 QALYs = $274/QALY

· Scaled to population: $47,931,000/174,916 QALYs = $274/QALY

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Limitations of Decision Trees

· Events are assumed to happen instantaneously.

· No easy mechanism for capturing time

· E.g., TIPS's lifetime discounted life years and QALYs calculated outside of decision tree model

· With chronic diseases (outcomes over long period of time), there are so many potential future health outcomes that it becomes difficult to characterize all future probabilities in tree form.

· Number of branches multiplying too quickly

· Exceedingly difficult to program and analyze the tree

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Decision trees provide a structure for combining probabilities and expected values to estimate ICERs.