Evaluating cost-effectiveness of treatment options for diabetes patients using system dynamics modeling

Shiyong Liu, Gordon Liu, David M Bishai, Judy C. Xu, Hong Xue, Youfa Wang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The growing global diabetes epidemic is a serious public health problem. We developed a system dynamic model to study the cost-effectiveness of different diabetes treatment options. According to existing literature, we estimated dynamic costs and changes of hemoglobin A1c levels of two first-line monotherapies and a hypothetical innovation therapy for glycemic control over a 15-year horizon. Incremental cost-effectiveness ratios were expressed as dollars per HbA1c decrement from perspectives of the patient, insurance-payer, and society. Simulation results showed that better adherence with a more expensive and efficacious drug results in better control of HbA1c and cost-saving in the long-run. The results also showed that the cost-effectiveness ratio varied with patients' pre-determined out-of-pocket payment for health expenditure. The higher the rate of their out-of-pocket payment for extra health care expenditure to their household income, the more cost-effective it is for the innovative drug from the perspectives of the patient, insurance-payer, and society.

Original languageEnglish (US)
Title of host publicationWSC 2018 - 2018 Winter Simulation Conference
Subtitle of host publicationSimulation for a Noble Cause
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages2577-2588
Number of pages12
ISBN (Electronic)9781538665725
DOIs
StatePublished - Jan 31 2019
Event2018 Winter Simulation Conference, WSC 2018 - Gothenburg, Sweden
Duration: Dec 9 2018Dec 12 2018

Publication series

NameProceedings - Winter Simulation Conference
Volume2018-December
ISSN (Print)0891-7736

Conference

Conference2018 Winter Simulation Conference, WSC 2018
CountrySweden
CityGothenburg
Period12/9/1812/12/18

ASJC Scopus subject areas

  • Software
  • Modeling and Simulation
  • Computer Science Applications

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