How to do (or not to do)… health resource allocations using constrained mathematical optimization
- PMID: 36398991
- PMCID: PMC9825717
- DOI: 10.1093/heapol/czac096
How to do (or not to do)… health resource allocations using constrained mathematical optimization
Abstract
Despite the push towards evidence-based health policy, decisions about how to allocate health resources are all too often made on the basis of political forces or a continuation of the status quo. This results in wastage in health systems and loss of potential population health. However, if health systems are to serve people best, then they must operate efficiently and equitably, and appropriate valuation methods are needed to determine how to do this. With the advances in computing power over the past few decades, advanced mathematical optimization algorithms can now be run on personal computers and can be used to provide comprehensive, evidence-based recommendations for policymakers on how to prioritize health spending considering policy objectives, interactions of interventions, real-world system constraints and budget envelopes. Such methods provide an invaluable complement to traditional or extended cost-effectiveness analyses or league tables. In this paper, we describe how such methods work, how policymakers and programme managers can access them and implement their recommendations and how they have changed health spending in the world to date.
Keywords: Resource allocation; cost-effectiveness analysis.
© The Author(s) 2022. Published by Oxford University Press in association with The London School of Hygiene and Tropical Medicine.
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References
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- Crown W, Buyukkaramikli N, Sir MY. et al. 2018. Application of constrained optimization methods in health services research: report 2 of the ISPOR Optimization Methods Emerging Good Practices Task Force. Value in Health 21: 1019–28. - PubMed
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- Crown W, Buyukkaramikli N, Thokala P. et al. 2017. Constrained optimization methods in health services research—an introduction: report 1 of the ISPOR Optimization Methods Emerging Good Practices Task Force. Value in Health 20: 310–9. - PubMed
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- Edejer TTT, Baltussen R,Tan-Torres T. et al. (eds). 2003. Making choices in health: WHO guide to cost-effectiveness analysis, Vol. 1. World Health Organization.
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